Bafin issued a cryptocurrency warning to consumers. "Virtual currencies such as bitcoin and other cryptocurrencies are high-risk and speculative investments despite recent record prices," the regulator warned.

Bafin added that the value of cryptocurrency is largely unregulated in the EU at the moment. Companies in Germany that want to run crypto hosting businesses need to get permission from Bafin. In addition, as the term financial instruments is extended to include encrypted value, it involves banking or financial services and activities related to encrypted value, which requires permission from the UK monetary authority. However, this does not provide any protection for the loss.

(2021-3-20)