Crypto assets were included in the list of financial instruments contained in Section 1 para. 11 sentence 1 no. 10 of the German Banking Act (KWG).
According to the definition contained in Section 1 para. 11 sentences 4, 5 KWG, crypto assets are digital representations of a value that has not been issued or guaranteed by any central bank or public authority and that does not have the legal status of a currency or money, but that is accepted by natural or legal persons as a means of exchange or payment on the basis of an agreement or actual conduct or that serves investment purposes and that can be transferred, stored and traded electronically.
Crypto assets do not constitute e-money as defined in Section 1 para. 2 sentence 3 of the German Payment Services Supervision Act (ZAG) or a monetary value which fulfils the requirements of Section 2 para. 1 no. 10 ZAG or which is only used for payment transactions pursuant to Section 2 para. 1 no. 11 ZAG.