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 “economic asset” (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
A liquidity aggregator and decentralized exchange with intelligent routing that connects a large number of decentralized and centralized platforms to minimize slippage and find the best price for users.
The synergistic effect of its smart contract is of tremendous benefit to the Ethereum community.
Bitwala offers a banking experience that combines fully protected bank accounts with access to cryptocurrencies, digital assets, and blockchain-based finance.
With the company’s blockchain technology platform, customers can invest in cryptocurrency directly from a bank account and earn up to 4% annual return on Bitcoin.
FinLab is a Germany-based investment company dedicated to building businesses in financial services technology.
Minespider is an open blockchain protocol for supply chain due diligence. It offers all actors in the chain the possibility of presenting and tracking the origin of the extracted materials, whatever their transformation throughout the supply chain.
The NAGA Group
The NAGA Group provides personal finance and investment products under the NAGA brand and combines and unifies the commerce, investment, transactions and community of both fiat and crypto.
Tangany provides a “Wallet as a Service” for businesses to easily integrate blockchain technology into existing and new systems via an API.
Connectors (Meta Blockchain API) allow customers to connect to different public (like Ethereum or Bitcoin) and private (like Hyperledger or Privat Ethereum) blockchains.
With Coindex, customers can easily and securely invest in digital assets like Bitcoin. Coindex is the premier smart crypto wallet platform where users can set up index and individual portfolios in the blink of an eye.
CryptoTax helps individuals and businesses meet their legal obligations arising from the processing of blockchain-based assets.
Block size capital
Blocksize Capital makes the DLT and Blockchain asset market accessible to financial institutions.
Lighthouse is a company made up of entrepreneurs and crypto enthusiasts united in their goal of driving innovation in the digital economy.
Bitbond improves the issuance, settlement, and custody of bonds and other assets using blockchain technology and tokenization.
In 2019, Bitbond received regulatory approval from BaFin to execute the first security token offering (STO) in Europe.
The IOTA Foundation is the next generation blockchain and was launched with a very clear and focused vision to enable the paradigm shift of the Internet of Things, Industry 4.0 and a trustless “on-demand economy” by establishing a de facto standardized “Ledger of Everything”. ‘.