Germany recently approved bitcoin, why exactly is the approval required and what will happen after approval ?
It is not that it needs approval, but it puts Bitcoin in a better light if it is approved by a country like Germany. Even if it wasn't officially approved people would still be able to use it or trade it. Many countries try to regulate the use for taxes and to prevent illegal transactions (though illegal transactions could be made in any currency in the end, so my guess is mainly taxes).