German Financial Watchdog Teleases ICO Guidelines

The move comes after significant increase of new queries

by Viko
22 February • 1 min
In News

Germany’s financial watchdog has stepped in to explain what is required to launch an Initial Coin Offering (ICO) in the country in response to an increasing number of questions regarding the country’s legal attitude towards ICO tokens and coins.

Germany’s Federal Financial Supervisory Authority (BaFin) on Tuesday published a five-page document, trying to clarify the situation, while the country has not adopted any specific regulations towards ICOs.

Warnings about potential risks for ICO investors, have already been released by the institution in November 2017.

On 16 February, the Swiss regulator FINMA published a similar document, setting guidelines for tech startups that aim to raise funds for innovative Blockchain-based projects via ICOs.

Germany tends to be one of the crypto-friendly countries and has the potential of adopting digital money for daily use, experts say. A recent survey showed that about 64% of the Germans are aware of the existence of Bitcoin, twice as much as in 2016. However, skepticism in the country is still strong with 75% of the people saying they won’t use it like the euro, because its value is not stable.