It looks like banks are not particularly fond of Bitcoins. Although equipped with the necessary BaFin licenses, so far, banks do not excel when it comes to offering special "Bitcoin products" or the financing of start-ups in this regard. The reasons for this may be both the varied and high risks associated with Bitcoins and the fact that the relevant business models are relatively new, so that banks lack the necessary experience in evaluating the same. It remains to be seen whether and to what extent banks abandon their reluctance in the future and will open up the market with the alternative currency. In any case, Fidor Bank AG has taken a first step: As far as can be seen, it has gotten into the Bitcoin business with its cooperation partner Bitcoin Deutschland AG as the first German bank. The cooperation concluded between Fidor Bank and the leading German trading platform shows that it is indeed possible for banks to participate in the Bitcoin market with the assistance of suitable contractual designs and to simultaneously reduce the legal risks to an acceptable level.
Where outside capital of banks is lacking, venture capitalists are required. The Bitcoin market is therefore still significantly financed with private funds for the time being. Start-up companies use their own funds and in part risk losing them in order to implement their business ideas. Business angels and venture capital companies do the rest, in order to provide promising Bitcoin companies with risk capital – not least in their own interest.
As one of the leading German law firms in the area of Bitcoins, Law and Taxes, we provide legal advice to start-ups we also provide advice, as well as private investors, banks, and other financial services providers interested in alternative currencies. We check target companies in the course of a legal and tax due diligence process, particularly in respect to supervisory law, conduct negotiations with the parties concerned and design and review the necessary participation and partnership agreements. We would also be glad to make valuable contacts for you within the Bitcoin ecosystem.
Do you want to invest in Bitcoin companies or establish one of your own? Attorney Dr. Annette Wagemann (Certified Specialist for Banking and Capital Markets Law) and Attorney Benjamin Kirschbaum will gladly answer any questions revolving around banks, finance and their connection with Bitcoin. You can reach them via e-mail (firstname.lastname@example.org) or by phone (+49 (0)69 76 75 77 80).