The federal government no longer has any fundamental objections to the first comprehensive regulatory approach to the cryptocurrency industry, which negotiators at EU lawmakers agreed on in June. The Federal Ministry of Finance replied to a request from the left-wing parliamentary group in the Bundestag that they were working “at European and international level for a reliable legal framework for crypto assets”.
In this sense, the federal government has actively participated in the negotiations on the new regulation for “Markets in Crypto-Assets” (MiCA) and the amendment to the money transfer regulation, writes the ministry. The scope of application of the anti-money laundering regulations will be expanded with the reform, “so that in future the client and beneficiary must also be identified when crypto assets are transferred.”
The FDP-led finance department does not express criticism. Anyone who uses virtual coins such as Bitcoin, Ethereum or Ripple in the EU should also be identified with the federal government’s placet, regardless of the equivalent value.
No payments to anonymous wallets
The planned regulations also apply to transactions with non-hosted wallets that do not require crypto service providers and are held directly by private users. A special provision should apply here: If a customer sends or receives more than 1000 euros to or from his own local wallet, the providers of crypto assets must check whether the virtual wallet is actually owned or controlled by the customer.
Two months ago, the federal government spoke out in favor of weaker conditions. At that time, she advocated the use of blockchain analysis tools to assess the risk of transactions.
Now the government refers to the increasing reports of “anomalies in connection with cryptocurrencies” at the Central Office for Financial Transaction Investigations (FIU). The number of suspicious transaction reports has multiplied from 570 in 2018 to 5230 in 2021. This year there should be even more, as 3340 advertisements had already been received by the end of May 2022. Unfortunately, the government does not know how many crimes related to crypto assets have been reported to the German police authorities.
To home page