Germany Implements Landmark Ruling Affecting Crypto-Assets

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New rules on crypto-assets have been adopted as part of Germany’s implementation of the EU’s 5th Anti-Money Laundering Directive, with changes to the German Banking Act Kreditwesengesetz (KWG- legislation of the banking system in Germany).

The Act declares the following fundamental points:

Crypto assets officially qualify as financial instruments
A banking or investment licence is required by firms that offer commercial trading or custody services.
Entities licensed only for crypto-asset services must have an initial capital of EUR €125,000 as a minimum benchmark along with other initial requirements. The new laws come into force next year on January 1st 2020.