Search
Contact
20.07.2018 | KPMG Law Insights

Bitcoin, Ether & Co: Cryptocurrencies are changing the infrastructure of the financial market

Bitcoin, Ether & Co: Cryptocurrencies are changing the infrastructure of the financial market

Digital transformation in payment transactions on the rise through virtual currencies + Trust in processes must first grow + Purely electronic payment processes offer great transparency + Banks and central banks remain outside + Rules lacking so far

Payment with virtual means of payment is made according to the principle of a blockchain. This is a digital cash book in which transactions between parties are recorded and stored. More than 700 cryptocurrencies are already traded on the net – with an upward trend. Currently, for example, the European Central Bank is discussing an “ECB Coin” as an alternative to central bank money.

Who controls the processes?

However, trust in the new type of payment transaction must first grow. After all, the idea of an electronic currency that works only on the Net, without intermediaries such as banks or central banks, seems rather strange at first. Complete transparency leads to traceability of the entire transaction history and therefore scores points in questions of data protection and banking secrecy. Nevertheless, there are still some things to be clarified in terms of processes. For example, what rules take effect when the system is disrupted. And how the whole thing can be controlled. It is therefore conceivable that we will see so-called hybrid systems in practice in the future: Closed systems with control instances that can take corrective action when necessary.

Open questions regarding payment transactions

There is also still a need for clarification regarding the treatment of cryptocurrencies in payment transactions. This is because, in BaFin’s view, Bitcoin & Co. are not e-money, as there is no issuer that issues the means of payment while substantiating a claim against itself. According to BaFin, the mere use of Bitcoin is not an activity requiring a license. This includes both letting and paying in the virtual currency, as well as selling and buying your own or “created” Bitcoins. However, if certain circumstances arise, a permit requirement may be established.

Conclusion: However, it is relatively unlikely that the relatively new and detailed design of the financial market infrastructure will be fundamentally changed. It will therefore be necessary to create control instances and rules, but this contradicts the very idea of a purely electronic means of payment.

Explore #more

07.08.2025 | KPMG Law Insights

NIS2: How energy suppliers must protect themselves against cyber attacks

In July 2025, the Military Counterintelligence Service reported a significant increase in spying attempts and disruptive measures by the Russian secret service, according to media…

06.08.2025 | KPMG Law Insights

Tax havens: When business relationships trigger criminal proceedings

A German tech company had been paying license fees to a contractual partner in Panama for years without ever having any problems. However, few people

06.08.2025 | Deal Notifications

KPMG Law, KPMG in Germany and KPMG in Switzerland advised Bureau Veritas on the acquisition of Dornier Hinneburg and its Swiss subsidiary Hinneburg Swiss

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) together with KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) and KPMG AG Switzerland advised Bureau Veritas Group (Bureau Veritas) on the acquisition…

05.08.2025 | Deal Notifications

KPMG Law advises Athagoras Holding GmbH on the acquisition of IGES Group

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) provided legal advice to Athagoras Holding GmbH, a platform of the Munich-based PE firm Greenpeak Partners, on the acquisition…

05.08.2025 | In the media

Wirtschaftswoche honors KPMG Law as top law firm in public procurement law

The current ranking of the Handelsblatt Research Institute in cooperation with WirtschaftsWoche has selected the top law firms and top lawyers in the legal fields…

04.08.2025 | Deal Notifications

KPMG Law and KPMG AG advise NMP Germany on the acquisition of DESMA Schuhmaschinen GmbH

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) has provided legal advice to NMP Germany GmbH (NMP) on the acquisition of DESMA Schuhmaschinen GmbH (DESMA). KPMG Law…

02.08.2025 | In the media

KPMG Law expert in the Rheinische Post on the topic of influencer tax evasion

The North Rhine-Westphalian State Office for Combating Financial Crime (LBF NRW) is currently evaluating a data package. It is said to contain 6000 data records.…

31.07.2025 | KPMG Law Insights

Modernizing the state and reducing bureaucracy: the plans in the 2025 coalition agreement

The coalition has set itself ambitious goals in the areas of bureaucracy reduction, state modernization and modern justice. And for good reason: comprehensive structural reforms…

31.07.2025 | KPMG Law Insights

AI in insurance companies – exploiting opportunities, managing risks

Insurance companies can use artificial intelligence (AI) to make their processes considerably more efficient. At the same time, special compliance requirements apply to the financial…

31.07.2025 | In the media

KPMG Law expert in Handelsblatt: New EU regulation affects 370,000 companies

At the end of the year, the EU will ban products associated with the destruction of forests. The hopes of many importers, who had hoped…

Contact

Dr. Konstantin von Busekist

Managing Partner
Head of Global Compliance Practice
KPMG Law EMA Leader

Tersteegenstraße 19-23
40474 Düsseldorf

Tel.: +49 211 4155597123
kvonbusekist@kpmg-law.com

© 2024 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

 KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll