bitcoin

The increasing professionalization of the bitcoin market

Due to the strong appreciation of bitcoins over the past few years, more and more traders have made their fortune. More and more professional investors, venture capitalists, and “business angels” are turning their attention to the alternative currencies market. Numerous national and international conferences, as well as the founding of interest groups and unions, are contributing to a much-needed professionalization of the industry.

The growing broad interest in bitcoins has led to the founding of many “cryptocurrency” businesses, from small self-funded startups to startup funding by wealthy Silicon Valley investors. While one or another business model has proven less profitable, there are meanwhile numerous bitcoin start-ups pursuing promising business models: their range extends from operating automated teller machines (so-called ATMs), manufacturing of specific devices-mainers (so-called ASIC-Miner), running trading platforms in the form of “message boards” or so-called multilateral commercial systems (exchangers), to operating mining pools and offering online or electronic wallets (so-called Hardwarewallet).

The regulated space for bitcoin startups is very difficult to recognize. Depending on the business model, a timely application for a BaFin license is mandatory if the founders do not want to risk closure of their enterprise by the authorities and, in addition, to avoid criminal penalties for their actions as well as substantial reimbursement payments. Also from the tax perspective, it is advisable to recognize the possible risks of a bitcoin business as early as possible. Last but not least, the contractual foundations, such as the general terms and conditions (AGB) and other customer contracts, must already be in place at the foundation stage.