Germany:
Berlin Court Holds That Bitcoin Is Not A Financial Instrument Contrary To The Practice Of The Financial Regulator
01 November 2018
Reed Smith (Worldwide)
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The German regulatory practice has been to treat bitcoin as a
unit of account and thus a financial instrument. Consequently,
commercial services involving bitcoin and other cryptocurrencies
(including trading, brokerage, operating exchanges, investment
advisory ) are regulated activities, requiring the relevant
authorisation of Germany's Financial Supervisory Authority
(Bundesanstalt für Finanzdienstleistungsaufsicht, or BaFin).
On 25 September 2018 the Higher Regional Court of Berlin decided
that bitcoin is not a financial instrument and that the operation
of a bitcoin trading platform is not a regulated activity. Caution
should be exercised, however: the decision of the court is not
binding on BaFin. To read more about the case in question and what
is next, click
here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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