Germany to Fight Money Laundering Through Cryptocurrencies

In just a week, on January 1st, 2020, the fourth directive of the European Union, aimed to fight money laundering, will enter into force in Germany. Experts have already called this initiative a law on combating the legalisation of illegal income through digital coins. Here is what the document about cryptocurrencies says: “A digital form of capital that is not issued or guaranteed by the Central Bank or Government agencies does not have the legal status of currency or money, but in practice, it is used by individuals and legal entities as a means of exchange and payment. Starting in January next year, the German regulatory authority will give licenses to companies that issue digital coins in the domestic market. Organisations working with cryptocurrencies will have a grace period for applying for a license. This period will last six months, until the end of June 2020. Due to the increased risks, the directive prohibits banks from storing cryptocurrency assets. That is, if financial institutions want to work with digital assets, they can do this only through their subsidiaries. Also, from now on, any cryptocurrency startup that wants to work on the Germany territory will have to register in the German jurisdiction.