Germany Regulations for Cryptocurrency

[KYCbench]

 

Germany, as the largest economy of the European Union, is often called one of the centers for the development of new technologies, including in the field of Bitcoin and the underlying technology. Many already established companies, as well as new start-ups are based here. In Germany, and especially in the capital, Berlin, various events and conferences are held regularly on the blockchain technology and cryptocurrencies.

On the other hand, Germany is a very bureaucratic country and is very dependent on government payment systems and therefore fear the fundamental changes that blockchain technology can bring. It is possible to say that blockchain is interesting for them, but not the transformation itselt. Therefore, for mostly non-compliant cryptocurrency industry, the situation is very complicated.

In Switzerland and Austria, two other German-speaking countries, it is already possible to easily buy train tickets with the help of cryptocurrency or simply to purchase bitcoins in post offices. At the same time, the Federal Financial Supervision Authority of Germany (BaFin) is still trying to prevent such in Steinmeier considers cryptocurrency a means to bypass taxes and money laundering. In his opinion, a very big blunder of the authorities was to leave the new industry without proper control of the central banks.

Earlier this year, Frank-Walter Steinmeier, serving as President of Germany, considered the financial industry to be fully responsible for the cryptocurrency industry, which he called the bubble. It requires financial regulators to prevent further speculation in this area. He stated that while tracking the cryptocurrency market, he did not see the currencies directly there. He called everything that happens in this area – betting games.

Also, a member of the board of directors of Deutsche Bundesbank, J. Wormeling, said earlier that cryptocurrency regulation is very difficult to implement. He argues that the actions of one state in such a global phenomenon are not effective. Wormeling sees the solution to the issue of uniting regulators around the world. In his opinion, the only way to thoroughly and correctly approach the decision on the cryptocurrency issue.

German entrepreneurs are to move away from legal uncertainty, tax legislation and social insurance obligations. All of the above is beyond their comprehension. German regulators have completely turned away from creating the conditions under which small and medium-sized enterprises can flourish. It is for this reason that we in Germany do not have a counterpart of Silicon Valley.

Swiss regulators have understood that certain serious innovations, including the blockchain and cryptocurrency, will inevitably lead to the transformation of today’s financial industry. It is also necessary to understand that the success of this industry lies at the heart of Switzerland’s economic prosperity, and therefore local regulators have taken all possible steps to create conditions so that cryptocurrency start-ups can feel comfortable and run a successful business. No wonder, probably, Zug is called the new Silicon Valley.

Moreover, there are other European countries successfully creating favorable conditions for crypto-business – Estonia, Cyprus or Malta are already skimming creams off the top.

KYCbench, your reliable KYC partner
www.kycbench.com
GDPR & ISO/IEC 27001:2013 compliant

Please contact KYCbench today, the most reliable ID verification processor at: [email protected]

Join our Telegram Groups:
KYCBench Announcement
KYCBench Community