Cryptocurrencies

The probably most essential innovation of blockchain technology is the enabling of transactions of digital assets between two parties without the need to involve a central intermediary like a bank or any other payment service provider as a settlement institution. Cryptocurrencies exist purely virtual and can be digitally transferred between the payer and the payee. […]

and the verification of the first block of the Bitcoin blockchain. The disruptive innovation that enabled users to transfer units of value between each other without the necessity of a centralized settlement intermediary had the potential to circumvent the traditional financial payment system and therefore, at the time – shortly after the banking crisis of […]

In Germany, business models that are based on cryptocurrencies require prior approval by BaFin if their activity qualifies as a banking business or a financial service. This was already the case prior to the introduction of crypto assets as financial instruments into the German Banking Act (KWG) at the beginning of this year. BaFin qualifies […]

Bitcoins and comparable cryptocurrencies are, according to BaFin, classified as financial instruments as defined in the German Banking Act (KWG). Therefore, a BaFin license is a mandatory prerequisite for operating a crypto exchange in Germany. What are the requirements to fulfil in order to obtain such license and what are the conceptual design options for […]