Germany issued crypto securities guidance with the deadline nearing so all registries have to meet money laundering requirements set by BaFin so let’s read more today in our latest cryptocurrency news today.
The German financial regulator BaFin set out the requirements crypto securities registry managers have to follow to get regulatory approval under the laws that the first took effect last year. The companies that are looking for a license have to keep data secure and meet the money laundering guidelines as BaFin argued, with the registration deadline looming for new procedures. Germany is extending the scope of the virtual assets businesses subject to regulatory scrutiny and we saw Coinbase becoming the first company licensed for crypto custody in Germany.
Germany issued crypto securities guidance while the country is extending the scope of virtual asset businesses that are subject to regulatory scrutiny and under the law, the security registries are operating prior to last December and can continue under a transitional deemed license but will be required to submit a complete application in six months. BaFin’s guidance confirmed the candidates will be asked for details on their IT systems and processes and the senior staff vetted for business experiences noting that the new sector where the experience is thinner, will pay a fee of 6,336 EUR.
Cryptocurrencies can be sold tax-free after a year of possession even If they are used for staking, according to the federal finance ministry and the guidance on the income tax treatment of crypto as Germany decided. Most importantly, the sale of the acquired cryptocurrencies like BTC and ETH is now tax-free for users after one year of owning the asset as the Parliamentary state secretary Katja Hessel added. The new guidance applies to digital assets used in staking or lending protocols.
The latter was one of the most discussed questions in recent months as Section 23 of the German Income Tax stipulated that if the period between the acquisition and the sale of the asset is mroe than a year, the full amount of the gains are tax-free. The cryptocurrencies used for staking or otherwise generating a profit might have to be held for up to 10 years to receive a tax exemption but that’s no longer the case as per the BMF.
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