The enormous rise in the price of Bitcoins and other cryptocurrencies in recent years made more than a few traders wealthy. Increasingly, professional investors, venture capital companies, and business angels turn to investments in alternative currencies.
Also, numerous national and international conferences, as well as the establishing of interest groups and interest associations contribute to the urgent necessity of professionalization in the industry.
The widely rising interest in cryto assets has led to a multitude of startups in the area of cryptographic currencies - from small bootstraped (self-financed) startups to startups financed by Silicon Valley investors.
While some of those business ideas turned out to be less lucrative, there are now numerous crypto startups pursuing promising business models: The range extends from
- the operation of automated teller machines (ATMs),
- the production of special miners (ASIC miners),
- to the operation of trading platforms in the form of "black boards" or else as multilateral trading systems (exchanges)
- up to the operation of mining pools (crypto mining startup) and
- the offering of online and hardware wallets.
The regulatory environment for a crypto startup in Germany is difficult to figure out. Depending on the business model, the early application for a license from the German Financial Supervisory Authority (BaFin license) is imperative if the founders do not want to risk the closing of their company by the public authorities. In addition, their activities would be punishable and susceptible to payments for damages.
Startups, just like any other company are taxable entities. Given the additional financial angle, startups should obtain tax advice to ensure compliance.
Finall, also the contractual bases of startups must be laid already in the founding phase, for example in the form of General Terms and Conditions or other customer contracts.
We would be glad to assist you with all of the legal and tax matters surrounding your crypto startup:
- selection of the correct legal form,
- providing advice and support in the establishment process,
- clarification of all supervisory and regulatory issues,
- advising and supporting in the required BaFin licensing procedure,
- all ongoing tax and legal questions arising during daily business operations.
We would also be glad to assume financial accounting and tax advisory services for your company.
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