Crypto assets are regulated as financial instruments since the beginning of this year. But in which cases BaFin’s administrative practice to qualify cryptocurrencies as units of account is still applicable and relevant?
The intended introduction of crypto custody services leaves room to interpretation for the question if the storage of private keys for multisig wallets will require authorization or not. Are multisig fiduciaries going to be crypto custody service providers?
The German federal government plans to design crypto custody services as exclusive financial services. In addition to the custody of crypto assets, the crypto custody service providers shall not be permitted to offer any other financial or banking service that would also require a BaFin authorization. Crypto custody service providers shall therefore be limited to their core business but shall also play a central role in the German crypto market.
The German legislator plans to regulate crypto assets as financial instruments. But what would be the consequences of such regulation and would there be any important changes to the current regulation of crypto?