Germany: BaFin Issues Note on the Classification of Tokens

On February 20, 2018, BaFin, the federal financial supervisory authority, published a response to numerous queries received on whether initial coin offerings (ICOs) with underlying tokens or cryptocurrencies, collectively referred to as tokens, are treated as financial instruments in the field of securities supervision.

In the note it is clarified that BaFin determines tokens' nature based on a case-by-case examination and on the individual design of the tokens. BaFin also determines whether they are to be treated as:

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