Germany publishes an explanation about ICO's - Hitecher
Germany publishes an explanation about ICO's

Germany publishes an explanation about ICO’s

by Evan Mcbride on

Сryptocurrencies news

The German financial regulator (BaFin) clarified the rules for conducting an ICO, thus reacting to the growth in the number of applications for the release of tokens.

At the end of 2017, BaFin warned investors about the risks associated with ICO’s. The new document is the next step in creating a transparent system of rules, understandable for both the organizers of an ICO and for investors.

In early February, the Swiss financial regulator FINMA published the principles of ICO regulation and introduced the classification of tokens, equating some types of ICO’s to the issuing of securities.

German officials still lag behind their Swiss counterparts: BaFin is not ready to classify tokens legally and believes that the issue requires additional study. The office notes that ICO regulation and cryptocurrencies are subject to existing securities laws.

Thus, tokens can be defined as securities, shares, or objects for the release of derivatives. In case of dispute, BaFin will study the features of each project separately.

The organizers of ICO’s which are registered in Germany must carefully check the legal requirements for financial instruments. The regulatory agency advises organizers to make sure their products conform to the laws in force and are ready to help in this process.

More and more countries are declaring the need for global regulation of cryptocurrencies. A similar statement was made by the International Monetary Fund.

However, the round table of the European Commission on cryptocurrencies did not make any real clarifications about the legislative restrictions of ICO’s and cryptocurrencies. The opinions of the officials basically boil downed to the fact that blockchain is a promising technology and investments in cryptocurrencies are risky.

In March, the G20 summit which will be held in Argentina. Members will discuss international rules governing the use of cryptocurrencies and the conduct of an ICO. Germany is one of the countries that will be there in the top twenty.

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