Skip to main content
Get the slots on your side - Welcome Bonus Up to 7BTC - 1xbit

Cryptocurrencies Now Classified as Financial Instruments in Germany

Germany’s Federal Financial Supervisory Authority (BaFin) issued Monday a new guidance that officially classifies Bitcoin and other cryptocurrencies as legal financial instruments in the country.

The classification of digital assets as legal financial instruments came after The Fifth Anti-Money Laundering Directive (5AMLD) took effect on 10 January 2020.

With this, BaFin shared its official description of digital assets in a press release as:

“Digital representations of a value that has not been issued or guaranteed by any central bank or public body, and does not have the legal status of currency or money, but by natural or legal persons. But it’s accepted as a medium of exchange by natural and legal persons and can be transmitted, stored, and traded electronically.”

BaFin, in its publication, noted that while all digital assets are classified as financial instruments, they are further categorized as investment, securities, and security and investment.

The update in Germany’s anti-money laundering laws digital assets classification has also resulted in the mandatory acquisition of licenses for all cryptocurrency custodial firms.

Institutions that provide crypto custodial services without a license at present have until the end of November 2020 to apply. They must, however, inform BaFin before 30 March 2020 of their intention to obtain a license in order to be exempted from receiving penalties.

To avoid confusion, BaFin also provided what cryptocurrency custodial firms are:

“The legal facts of the crypto custody business are fulfilled by custodians who take crypto values into care as a service for third parties. This primarily includes service providers who store their customers’ crypto values in a collective inventory without the customers themselves being aware of the cryptographic keys used.”

According to reports, at least 40 German banks have already applied for a license, following the directive from BaFin.

With the new classification of Bitcoin and cryptocurrencies, Germany looks to be embracing digital assets more and more, as it has been one of the countries open to accepting cryptocurrencies.

Meanwhile, cryptocurrency holders can further explore the use of digital assets, and one of the better ways to achieve this is to play Bitcoin casino games or wager on sports in offshore crypto online casinos and sportsbooks.

Do you see Bitcoin and cryptocurrencies becoming more popular in Germany? Follow on Twitter for the latest news and developments in crypto and blockchain gaming.


If you’re interested in getting an updated 2020 list of all Bitcoin casino reviews for this market, check out the casino review section.

Stake Simple Signup, Instant Withdrawals and Exclusive VIP Benefits



Get Wager-Free 150% Crypto Welcome Bonus at Wolfy Casino!

October 26, 2021

Wolfy Casino gives the exclusive opportunity to top your account with WAGER FREE 150% BONUS up to €200 on the first deposit at using crypto!

MyStake doubles the fun with 5,000 games, exclusive minigames

October 21, 2021

Find out how we at MyStake transforms a typical casino and sports betting experience into one you wouldn't want to miss for the world.

Meet Count Dracula & Win €10,000 in BitStarz Casino Promo

October 7, 2021

Gird your loins as you embark on a chilling adventure in Transylvania and into its spooky dungeons only at BitStarz Casino.


Interview with Eman Pulis, Founder of SiGMA

July 14, 2020

We had the opportunity to talk to Eman Pulis, founder of SiGMA, a highly-successful iGaming expo and conference home to 14000 attendees and 500 exhibitors.

Interview with Gregor Rozic, Sales Manager at GameART

July 7, 2020

We’ve had the opportunity to talk to GameART Sales Manager Gregor Rozic, who has 10 years of experience in online gaming on casino and poker content.

Interview with Magnus Leppäniemi, VP of Marketing & Head of Esports at Esports Entertainment Group

June 30, 2020

We had the opportunity to talk to Magnus Leppäniemi, VP of Marketing & Head of Esports at Esports Entertainment Group and member of Advisory board.

Your Message


    Please enter your email address:

    No account yet? Register here
    Forgot Password? Click here
    Already have an account? Login
    Forgot Password? Click here