BaFin finally recognizes Bitcoin and Co as financial resources
The German Federal Financial Supervisory Authority (BaFin) has published new guidelines on cryptocurrencies in which Bitcoin and Co are classified as digital assets since the beginning of the year. In addition, companies will in future require a license if they store or trade in crypto-currencies for third parties. Meanwhile, Bitcoin is entering a slight consolidation phase and Binance is entering an important partnership. We take a look at current events in the crypto space.
Fact sheet causes a stir
When the BaFin published a leaflet on Monday entitled “Hinweise zum Tatbestand des Kryptoverwahrbels” (Notes on the facts of the crypto custody business), many experts were amazed. In the first section of the leaflet, BaFin makes the following comments: “The crypto-custody business was introduced as a financial service by the Act Implementing the Amending Directive to the Fourth EU Money Laundering Directive (hereinafter: Amending Directive) of 12 December 2019 (Federal Law Gazette I p. 2602; hereinafter: Implementation Act). Thus, it is indicated how the digital currencies will be understood in the future.
Safekeeping of cryptos
Under the third item of the leaflet, BaFin provides information on “the safekeeping, administration and protection of cryptographic assets or private cryptographic keys which are used to hold, store or transfer cryptographic assets”. Accordingly, companies that want to store crypto-currencies for their customers in the future need a corresponding license. 40 banks have already acquired this license.
Bitcoin on Tuesday
The No.1 crypto currency fell by about 1.72% on Tuesday and is now trading at 8712 USD. After the important support had held at $8400, there was initially much to suggest that the $9000 mark would be breached again, but the BTC is stuck in the clutches of the 200-day line.
Altcoins follow with few exceptions
The Altcoins follow the Bitcoin on Tuesday as usual and record smaller price losses. Chainlink (+ 2.41 %), Crypto.comCoin (+ 2.25 %) and Dogecoin (+ 3.43 %), on the other hand, managed to break into positive territory. However, these coins are an absolute exception. Due to the high Bitcoin dominance of 63.7 %, most alternative assets are clinging to “digital gold” with all their might.
Binance with new partnership
Turkey seems to be taking an increasing liking to blockchain technology. The Turkish Akbank is now joining forces with the market-leading crypto exchange Binance to drive the adaptation forward. Users can now deposit and withdraw with Turkish Lira.
The coronavirus weakens traditional markets and continues to keep the world on tenterhooks. After countless trade fairs have already been cancelled all over the world, the French government is now reacting to the current development with several postponements and is postponing the “Paris Blockchain Week”. The catch-up date is expected to take place in December 2020.