The German Federal Financial Supervisory Authority (BaFin) has clarified the requirements for initial coin offering tokens (ICO) after receiving “more requests” for their legal status in a note published on Tuesday, February 20 .

 

BaFin’s note follows its warning to investors from November 2017, in which it discussed the potential “risks” of ICOs.

 

The update comes “against a backdrop of BaFin’s increased demand for securities and asset management,” notes the note, with potential OIC traders asking whether the underlying tokens, coins or cryptocourses in the area of ​​securities monitoring. ”

 

BaFin follows its counterparts in Switzerland, where the FINMA Financial Regulator introduced the same week new regulatory guidelines for country offices in response to a large number of questions about how they should be dealt with in the current legal framework.

 

On Tuesday, February 20, Cointelegraph reported that the US state of Wyoming had passed a bill exempting certain symbolic offers from securities compliance if they met certain requirements by July 2018.

 

Under the jurisdiction of Germany, ICO operators “are required to verify exactly whether a regulated instrument, such as a financial instrument … or a security, is processed, in order to meet potential legal requirements without any loopholes. “.

 

This month, the country also embarked on a trans-European campaign to discuss wider regulation of cryptocurrency internationally at the G20 summit in March in Argentina.

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