BitPay Suspends Operations In Germany

BitPay, a payment processor that enables people to receive payments in bitcoin and bitcoin cash, announced that they had suspended their operations in Germany on Thursday.The exchange published a post detailing that the company adheres to the local regulation policies. BitPay said, “BitPay also complies with local regulations which ban cryptocurrency. If your country has banned bitcoin or cryptocurrency use in general, we cannot offer our services to your business or customers. Currently, BitPay cannot service merchants or users that are based in the following countries: Algeria, Bangladesh, Bolivia, Cambodia, Ecuador, Egypt, Germany, Indonesia, Iraq, Kyrgyzstan, Morocco, Nepal, and Vietnam.”Previously, it was reported by Crypto-News India that cryptocurrency firms based in Germany would have to apply for a license to the nation’s financial watchdog BaFin by end of 2019 as the new Anti-Money Laundering (AML) regulations come into effect, sometime next year.We had reported that the development is a significant one, because for the first time cryptocurrencies are going to be recognized as financial instruments in Germany. It’s also significant because it shows that Germany doesn’t have any plans of banning cryptocurrencies in foreseeable future, unlike Southeast Asia where China has already banned them and our own country where a ban has been recommended by the committee that was formed to formulate crypto regulations.As it is with any new regulations, there were a lot of voices that were divided on the issue. Bundestag Free Democratic Party Frank member Schäffler said that the government is hurting innovation by enforcing these rules, and the rules will force Germany-based crypto businesses to shift themselves to other EU states.On the other hand, some people remarked that German stance on cryptocurrencies is much better and clearer now than it was ever before. Though more clarity is also needed for boosting institutional investment, a license requirement is still a step in the right direction.Liked what you read? Join us on Telegram