The German regulator has published new guidance on how it will classify the tokens sold during the ICO.
In response to the increase in the number of ICO projects in the country, 20 February Federal financial Supervisory Agency (BaFin) has published a recommendation letter for companies that are engaged in or plan to engage in the sale of tokens. At the end of 2017, the German regulator has addressed the subject of ICO and released a warning that told investors about the risks associated with investing in ICO projects.
From letters of recommendation should be that the BaFin will carry out “accurate individual assessment” of tokens to determine their legal status, and will not be releasing to the General rule for all projects. It says that the tokens can represent different financial instruments including stocks, derivatives and digital form on the right to vote.
The letter also contains advice to the startups that are planning to ICO: “contact us”. Thus, the German regulator offers his assistance to all projects in order to determine whether their respective products to the current national and European standards or not.