The German government, according to an official document, will regard bitcoin equivalent to legal tender when used as means of payment.
“Virtual currencies become the equivalent to legal means of payment, insofar as these so-called virtual currencies of those involved in the transaction as an alternative contractual and immediate means of payment have been accepted.” — Official Document
The country is an industrial powerhouse, with worldwide leaders in the auto, banking, energy, pharmaceutical, and electrical sectors. With that said, there is a hype in every single sector about the adoption of blockchain and cryptocurrency.
In December 2018, according to Altbitnews.com, German´s second-largest bank announced it is jointly developing infrastructure for crypto exchanges alongside the Stuttgart Exchange group.
Why should you open a cryptocurrency company in Germany?
Investors trying to open a crypto business in Germany will find several benefits. With a supportive government, friendly tax regulations, and curious young people the future of crypto looks bright in Das Land der Dichter und Denker (the country of poets and thinkers).
The nation offers a welcoming entrepreneurial ecosystem, a well-developed network of professionals, and beneficial tax treatment for virtual currencies.
Opening a blockchain or crypto company will take the same steps as for businesses in other domains.
Germany has a dynamic crypto community, with several blockchain and crypto meetups throughout the country. In fact, back in 2017 meetups had a minimum of 400 members. And this is crucial because it connects entrepreneurs and startups with the potential to network and develop new ties and ideas.
Berlin, the crypto hub in Germany?
Due to all the various activities, it is notable how Berlin is the preferred location for investors and startups. They are building wallets, platforms for running blockchain based projects, and applications. Also, offering transaction and exchanged solutions for crypto tradings.
Investors who decided to start their businesses in Berlin should understand the company formation process. Moreover, it is vital that startups seek to understand all the requirements for running a company in the city.
Resident companies need to register with the German trade register, and required to have a unique name. They should also maintain a registered office in the country, as well as a bank account opened in the country.
Moreover, the annual reporting, as well as the accounting standard principals, must be observed accordingly.
The GmbH is a preferred type of company for crypto startups because of the low liability imposed on its founders.
And last but not least, make sure to acquire a specialized lawyer. Crypto Lawyers can help you with all the constitutional documents as well as the submission process for the company registry.
Germany holds a beneficial taxation regime.
For taxation purposes, companies trading in cryptos do not fit in the same category as regular trading companies. In fact, neither are cryptocurrencies treated as regular currencies.
Recently, the Federal Ministry of Finance increased the favorable tax treatment applying VAT exemptions to bitcoin transactions. In addition, mining is not subjected to value-added taxes (VAT).
Young people in Germany
Just as with any other nation, Germans youngsters are top consumers of cryptos. According to a survey conducted by the German consumer centers of Hesse and Saxony, as of November 2018, 28% of Germans between the age of 18–29 indicated to be interested in the virtual currencies.
“A survey conducted by the German Consumer Centre shows a growing interest in crypto, with more than a quarter of young Germans saying they are willing to invest in cryptocurrency.
It is not surprising that a demographic whose lives have been characterized by smartphones, internet, and social media, see the attractive functionality cryptocurrency provides as an instant and decentralized means of transferring value.”
Consequently, the nation’s government is investing in young people and asking them to give their input about new projects. This is in view of helping consolidate blockchain and cryptos in the nation’s economy.
In addition, a large number of industries have shown an expressive interest in the cryptocurrency and blockchain industry. Including the pharmaceutical companies, the energy sector, and even Porsche.
German government invites industries to get involved
According to Reuters, the German government invited industry companies to give their input in the blockchain process and strategy. As a matter of fact, by the summer of 2019, they hope to reach a comprehensive strategy.
Considering all the success Germany has faced in the last 70 years in the tech sector, we can say this time won’t be any different. Furthermore, Germany has got all the puzzle pieces in place. It is ready to receive cryptocurrency and blockchain startups from every angle which could only benefit such business.
According to Fintechnews.ch, Germany is hosting 120+ startups already. But it doesn’t end here, there are constant announcements of new developments and projects.
Get ready to see this crypto hub shoot to the moon.
Disclaimer: Our team works hard to bring you the best content in the cryptocurrency market, but it is only our point of view and not legal advice, and may be divergent from other opinions, so please do not make any decisions without concluding studies of your own to understand the profit possibilities and uncertainties involved at your own risk.