Germany’s relaxed approach to cryptos pose risks, say experts

Europe Germany

Germany’s Federal Financial Supervisory Authority’s (BaFin) relaxed approach to cryptocurrencies resulted in an influx of ICOs but comes with risks.

According to a Handelsblatt report, BaFin has not defined cryptocurrencies as a form of equity. Also, in 2017 the chronically understaffed agency examined only 23 ICOs, resulting in 4 bans and criminal prosecutions.

In the eyes of some experts, this makes Germany similar to tax havens such as Gibraltar or the Cayman Islands and make its market more prone to dubious dealings.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

Leave a Comment

Coinlaw Newsletter

Whether you are a law firm, founder gearing-up for a token offering, or a crypto currency trader, subscribe to the biggest crypto legal newsletter to be informed of the latest developments in each and every jurisdiction