The use of cryptocurrency in Germany is growing rapidly, with Bitcoin and Ethereum being widely used in e-commerce to purchase goods.
Cryptocurrencies in Germany are regularly transferred and exchanged and companies have invested their capital in the new digital currency.
It is estimated that more than 2.1 million people – 2.62% of the total population of Germany – currently own a cryptocurrency with Bitcoin as the leader.
The majority of German cryptocurrency owners are in the 18-34 age group (33%). Five percent of them are 55 and over, which means that cryptocurrencies are largely owned by young, tech-savvy and well-off German residents.
Germany, however, is one of the few states in Europe to have started regulating the Bitcoin system.
The regulation on virtual currency already exists and follows German banking law (Kreditwesengesetz).
According to this rule, anyone who carries out banking activities or financial services for commercial purposes in Germany needs a written authorization from the German Federal Agency for Financial Supervision (GFFSA).
The GFFSA has classified digital currencies, in particular Bitcoin, as units of account within the meaning of German banking law.
This means that commercial Bitcoin platform operators – at least those established in Germany and / or those serving German customers – need a license from the GFFSA under German law.
The German tax authorities classify Bitcoin as an âeconomic assetâ (Wirtschaftsgut) which is then subject to income tax in accordance with the German Income Tax Act (Einkommenssteuergesetz).
Germany therefore appears to be fertile ground for crypto companies. Some of the most successful crypto companies in the world have found their place in Germany.
1 inch exchange
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