2024 has been an eventful year in the crypto calendar with Bitcoin hitting its all-time high of $75,000 and the currency finally getting its first-ever Bitcoin-spot Exchange-Traded Fund (ETF) in the US.
However, one challenge persists—regulation. Whether in the US or elsewhere, countries all over the world are finding it difficult to regulate this “anonymous” industry that would like to remain incognito. One country that has made strides with crypto regulation is Germany. Some people say the country is on the right path, while others claim it’s a bit too strict on crypto, especially after recently seizing 47 crypto exchanges.
According to Statista, about 27 million people are predicted to use cryptocurrencies in Germany by 2025. So, it goes without saying that crypto is quite popular in the country. Cryptocurrencies are legal in Germany but aren’t considered legal tender.
Many people use cryptocurrencies for purchases, as an investment, or for buying NFTs and gaming. If you’re a fan of casino gaming, there are online casinos in Deutschland, where you can play slots and table games using crypto. Beyond gaming and trading, there are many other use cases of crypto in the country.
At the moment, the Markets in Crypto Assets (MiCA) provides a framework for crypto regulation in the European Union, and that includes Germany. But, Germany is proactive in its approach and has the Federal Financial Supervisory Authority (BaFin) that regulates digital assets in the country.
This year, BaFin has been involved in crypto crackdowns that show why Germany should be emulated when it comes to cryptocurrency regulation.
German Government Seizes Bitcoin Worth Over $2 Billion
At the beginning of the year, German authorities in the eastern state of Saxony seized 50,000 bitcoins valued at over $2 billion, at that time. The operation was targeted at a movie piracy site, Movie2k.to, which had been active since 2013.
Saxony police officers seized the funds and transferred them to a crypto wallet owned by the German Federal Criminal Police Office. The tokens were sold around June and July, to various crypto exchanges like Coinbase, Kraken, and Bitstamp. Crypto experts and blockchain firms like Arkham Intelligence closely monitored the movements of the tokens as they could have easily affected the markets.
An interesting yet contradictory point of view came from Joana Cotar, a member of the German Federal Parliament, who opposed selling the tokens, suggesting instead that they be held as a strategic reserve currency due to their significant value. An idea that Donald Trump suggested doing if elected president of the US.
German Government Closes 47 Crypto Exchanges
In another crackdown, this time in September, the German Government seized 47 crypto exchanges claiming they were tied to an underground economy. The platforms were said to lack licenses from the Federal Financial Supervisory Authority and were used by cybercriminals for ransomware, botnet operations, and black market trades.
Some of the sites had a big database of over 400,000 users and facilitated more than 1 million transactions.
The federal criminal police office seized the websites and left a final warning statement on the site saying they’ll keep searching for traces.
While some countries are struggling with having a conversation on crypto regulation, it’s safe to say Germany is steps ahead. They have their national authority regulating digital assets and are proactive in their approach towards making cryptocurrency a safe space for users. If there’s a country that jurisdictions should look up to as an example of putting in the work regarding crypto regulation, then it’s Germany.