Cryptocurrencies - Country Report Germany

Abstract

Just as other jurisdictions across the globe, German private and regulatory law is still struggling to get to terms with the challenges created by virtual currencies such as BitCoin or Ether. While some recent adjustments to the legal framework for financial regulation, ahead of incoming EU legislation, has clarified at least some aspects, in particular with regard to licensing requirements and prudential requirements applicable to providers of services pertaining to cryptocurrencies, there are, as yet, no specific rules governing the treatment of cryptocurrencies for the purposes of general private law – including, in particular, the law of contract and property law. This Country Report takes stock of the law as it currently stands and identifies open questions and residual problems. It concludes that, while the German Civil Code, a comprehensive, rather abstract codification, proves sufficiently flexible as to cater for some of the challenges, important aspects, including, in particular, the treatment of property rights in cryptocurrencies and the implications for the transfer of such rights, remain entirely unclear.

Keywords: : Cryptocurrency, BitCoin, German Law

JEL Classification: E42, E49, G15, G19, G23, G28, K19, K29