CDU/CSU wants to control cryptocurrencies sharply
The Bundestag. Image by Fred Po via Flickr.com. License: Creative Commons
Actually, the cryptom market in Germany is already strictly regulated. But if it goes to the CDU and CSU, this control should be massively tightened in the future. This shows an application that was discussed yesterday in the Bundestag. It corresponds to a declaration of war on the ecosystem. 
Yesterday an expert hearing for an application by the CDU/CSU for the prevention of money laundering took place yesterday. MPs call for “a paradigm shift in combating financial crime” and “a comprehensive package of measures”.
In essence, it is about improving the organizational structures. Instead of creating further “parallel structures”, the fight against financial crime and money laundering should “be put into a hand at a customs police”, “which is equipped with the necessary resources and skills”. So want the CDU/CSU “a new one
Power for existing international role models ”. This should be supported “as quickly as possible” by artificial intelligence.
In contrast, there is not much to be obtained at first. For companies, fewer strict rules in money laundering prevention are a problem as a lack of support from competent supervisory authorities. In the case of uniform rules throughout Europe, a important location advantage are cooperative and constructive supervisors, and with everything you can hear from the industry, Germany still has some room for improvement here.
However, the application becomes more sensitive when it comes to the subject of cryptocurrencies. Because the Union Party also demands “a decisive action against the abuse of crypto values for money laundering and terrorist financing”. According to the federal parliament, crime organized in 2022 “investments of criminal funds in crypto currencies of EUR 451.4 million were made for money laundering”, which is more than in real estate and almost half of the entire money laundering investments found by one billion euros. Should that be the case, this would not throw good light on the ecosystem.
According to the CDU/CSU, cryptocurrencies are “the first means of choice” and “also play a crucial role in the financing of terrorist groups such as Hamas.“On the other hand, the application demands“ Germany must act decisively.“Specifically, the Union parties demand that
- When buying cryptocurrencies, “fundamentally” increased diligent duties according to §15 of the money laundering law. Excesses would have to check the origin of the funds, possibly obtain additional information about the financial situation of the buyer, continuously monitor the business process and may also report a report to the financial supervision at customs (FIU).
- The change of cryptocurrencies against cash is to be banned all over,
- also offering and using mixers.
- There should be a registration obligation for “self-hosted addresses”-for the addresses you have in your wallets-as well as a ban on sending transactions to non-registration addresses. Whether this ban only affects crypto service providers such as stock exchanges-who are obliged to do so after the Travel-Rule-or also private individuals, is not in the application.
- Analogous to §24c of the Banking Act, “an automated access procedure for crypto wallets is set up”. The Banking Act stipulates that financial institutions have to conduct files with bank accounts, depots and lockers led in Germany, which can automatically call up the BaFin. The same should also be set up for cryptocurrencies.
The CDU/CSU demands a kind of control maximalism here. The demands against far beyond the previously existing standards in Germany, the European Union or any western country. Some of the measures would be so drastic that they would continue to throw Germany back on Germany as a crypto location. The crypto economy would migrate into the sub-area or abroad; The result would be a massive loss of control.
In the hearing, several experts assessed the application. The focus was on the official restructuring, although apparently no agreement could be felt. A representative of the police union said that there was no need for a new authority, while a representative of the Cologne public prosecutor’s office praised that the application only requested the implementation of international standards. Presumably a scramble begins here for responsibilities and potential budget allocations.
As for cryptocurrencies, however, the experts seemed to agree if they mentioned it at all. Kilian Wegner, Junior Professor of Business Law at the University of Frankfurt or said, for example, that it was correct to supervise cryptocurrencies more, even if this triggered criticism from the crypto community. One can hope that this view will not be asserted.
