Menu

Search

  |   Digital Currency

Menu

  |   Digital Currency

Search

Germany’s BaFin clarifies stance on ICOs

Germany's Federal Financial Supervisory Authority (BaFin) has issued a letter on the regulatory classification of tokens issued via Initial Coin Offerings (ICOs) or token sales.

The regulator said that it has been increasingly receiving inquiries from investors as to whether the tokens distributed via ICOs should be considered as financial instruments.

“[BaFin] has now issued a letter of advice in which it comments on the regulatory classification of tokens in the area of ​​securities supervision. This applies to all market participants who provide services in relation to tokens, act with them or publicly offer tokens,” it said.

BaFin further said that to ensure full compliance with legal requirements, market participants are required to check closely the existence of a regulated instrument, such as a financial instrument or a security. If the parties are unclear about any aspect they should contact its specialist departments at an early stage.

The letter follows a warning on ICOs from BaFin in November 2017. It cautioned investors saying ““ICOs are a highly speculative form of investment. Investors should therefore be prepared for the possibility of losing their investment completely.”

Recently, the Swiss Financial Market Supervisory Authority FINMA has published its guidance on how it intends to apply financial market legislation to the field on ICOs. Last month, The Russian Ministry of Finance published a draft federal law on the regulation of digital assets and token offerings.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

June 21 00:00 UTC Released

FRBusiness Climate

Actual

110 %

Forecast

108 %

Previous

June 21 00:00 UTC Released

HUC/A Balance QQ

Actual

1.027 Bln EU

Forecast

Previous

January 31 00:00 UTC 203447203447m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 203447203447m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 215267215267m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 203447203447m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 215267215267m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 203447203447m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 203447203447m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 203447203447m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.