Representatives of BaFin admit that they receive a lot of inquiries about the status of tokens and crypto-currencies, distributed by investors through the ICO. The German Federal Financial Supervision Authority recommended that interested parties refer to the provisions applicable to traditional financial instruments and comply with current requirements. The new poll revealed that more than two-thirds of the Germans know about Bitcoin.
In an advisory letter, BaFin provides some basic definitions of ICO and related terms. The regulator informs the public that tokens are usually generated using blocking technology, and ICOs are used to raise funds for launching projects.
The Federal Financial Supervisory Authority advises ICO participants to verify and comply with the rules applicable to regulated financial instruments, such as securities. Individuals and businesses should contact Bafin if they have any doubts about the rules. The letter clearly states that for the purpose of ICO regulation, tokens, coins and crypto-currencies are subject to the existing provisions in the field of securities supervision and other relevant national laws and EU laws.
Companies must also fulfill any obligations under the Law on Banks and the Capital Investment Code, the Law on Insurance Supervision and the Law on the Implementation of Payment Services. The Bafin licensing department will investigate cases where special permits may be required. If regulatory requirements are not met, the relevant projects or transactions may be banned. In addition, such violations may constitute administrative offenses and lead to fines.
The legal classification of tokens requires an accurate study, the Regulator believes. Tokens can be defined as securities, shares or objects for the issue of derivatives. The supervisor will determine the status in each case after studying all the features.
Most recently, the German Ministry of Finance против crypto-currency and ICO, calling them dangerous objects for investment.
Most Germans Know About Bitcoin
More than two thirds of Germans know about Bitcoin, one in five of them recognizes interest in the use of crypto currency, confirmed a recent study. The poll was conducted by the German association Bitkom.
The rapid growth of Bitcoin, as well as reports of thefts, frauds and market fluctuations, attracted the attention of German citizens. Now 64% of them admit that they heard about the most popular crypto-currencies, twice as much as in 2016 year. Despite this, only 4% have used them so far. Almost a fifth of respondents, 19%, say they can imagine buying Bitcoin. According to the executive director of Bitkom, Bernhard Rohleder:
"Bitcoin and other crypto currencies are good examples of how digital technology can change the financial industry."
Dissatisfaction with the policy of central banks and the search for alternative currencies are the main factors of interest in Bitcoin for 37% of the population. The desire to use crypto-currencies in online payments is another important factor (31%). Only 6% say that they were motivated by expectations to increase their wealth due to rising prices for Bitcoin.
A quarter of respondents (26%) complain that it's too difficult to acquire Bitcoin, because you need access to exchanges. 19% of Germans admit that they do not know how and where they can buy Bitcoin. One in five is afraid that its crypto-currencies can be stolen.
Author: Olga Novikova, Analyst Freedman Club Crypto News
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