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.