The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) published their reports on ICOs and Crypto-Assets on 9 January 2018 (EBA Report and ESMA Advice). Both EU authorities highlight issues relating to the current EU regulatory framework and call for an EU-wide approach to ICO and Crypto-Asset regulation.

Our previous articles showed the influence of national and european legislation on virtual currencies, however only being a partial area of the payment business. Here is also an example of international influence: The Financial Action Task Force (FATF) published a statement on 19th October. The FATF plans the progressive publication of guidelines for the supervision and control of virtual asset service providers.

A new circular by BaFin addresses BaFin’s concerns to financial institutions regarding AML-Compliance in connection with virtual currencies. The circular also indicates BaFin’s view regarding a license requirement for cryptoexchange platforms upon the „Bitcoin-ruling“.

Following recent legal developments regarding Bitcoins, such as the US court decisions in the cases of “Bitcoin Foundation” and “Trendon Savers & Bitcoin Savings Trust”, a US Congress hearing on Bitcoins, the prohibition of the receipt of Bitcoins by financial service providers in China as well as the warnings issued by the French National Bank and the European Financial Supervisory Authority, the German Federal Financial Supervisory Authority (BaFin) has also issued a circular on Bitcoins on 19 December 2013 in order to clarify potential risks for con-sumers as well as authorisation requirements for Bitcoin traders and online platforms.