Cryptocurrency For Banks And Financial Service Providers in Germany
Regulations for crypto assets and banks in Germany
It seems that the topic of crypto assets is not very popular among banks in Germany. Although they have the necessary BaFin licenses, banks have so far not been very active when it comes to offering special crypto products or financing startups in this field.
German banks act cautiously
The reasons for this may be both the varied and high risks associated with cryptocurrencies 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.
Cooperation between bank and crypto exchange
In any case, Fidor Bank AG has taken a first step:
- As far as can be seen, it has gotten into the crypto business with its cooperation partner Bitcoin Deutschland AG as the first German bank.
- The cooperation concluded between Fidor Bank and the leading German crypto trading platform shows that it is indeed possible for banks to participate in the crypto asset market with the assistance of suitable contractual designs and to simultaneously reduce the legal risks to an acceptable level.
Private investors, venture capitalists and business angels dominate the German market
Where outside capital of banks is lacking, venture capitalists are required. The German crypto asset 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 crypto companies with risk capital - not least in their own interest.
Legal and tax advice for banks and investors
As one of the leading German law firms in the area of crypto assets law and taxes, we provide legal advice to start-ups as well as private investors, banks, and other financial services providers interested in cryptocurrencies:
- 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 also make valuable contacts for you within the crypto ecosystem.
Your legal experts for questions regading banks and crypto
Do you want to invest in crypto 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 and their connection with cryptocurrencies. You can reach them via e-mail (firstname.lastname@example.org) or by phone (+49 69 76 75 77 80).