The German Federal Financial Supe rvisory Authority or BaFin for the first time called cryptocurrencies a financial instrument.

The regulator explained that the definition of digital assets is the same for several organizations, including the group developing financial measures to combat money laundering. Information appeared in Finance Magnates.

A BaFin statement said cryptocurrencies are a digital value not issued or guaranteed by any central bank or government agency. Also, it is not necessarily associated with legal currency, and it does not have the legal status of cash or currency, but at the same time it is accepted by legal entities and individuals as an exchange medium. It can be stored, transferred and traded in digital format.

More recently, several dozen banks in Germany have requested permission to conduct bitcoin transactions. This opportunity appeared with the introduction of the fifth directive by the European Union, which allows financial institutions to carry out operations with digital assets while observing measures to combat money laundering and the financing of terrorism.