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

13.11.2025 | KPMG Law Insights

Implementing AI in the legal department – these are the success factors

Artificial intelligence (AI) only benefits the legal department if it is implemented correctly. The technology promises to automate time-consuming routine work and fundamentally improve the…

13.11.2025 | KPMG Law Insights

First omnibus package to relax CSDDD, CSRD and EU taxonomy obligations

On November 13, 2025, the EU Parliament voted on its negotiating position regarding the so-called omnibus package, which provides for a relaxation of the CSRD,…

12.11.2025 | In the media

KPMG Law Statement in In-house Counsel: More stability under the umbrella of corporate governance

There is a lot of talk about “corporate governance” in the face of multiple crises and regulatory tendencies on the part of legislators. But what…

07.11.2025 | Deal Notifications

KPMG Law and KPMG advise Diehl Defence on the acquisition of the Tauber Group

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised Diehl Defence on the acquisition of the Tauber Group. KPMG Law provided legal…

07.11.2025 | KPMG Law Insights

Changes to the H-1B visa and their consequences for US hiring and secondment practices

President Trump’s administration has introduced two significant changes to the highly popular H-1B visa program for skilled workers: The previous random lottery will be replaced…

07.11.2025 | In the media

KPMG Law Statement on HAUFE: Confusion surrounding the EU Deforestation Regulation – and what companies should do now

Possibly, perhaps, under certain circumstances, the EU Deforestation Regulation (EUDR) will not be binding for large and medium-sized enterprises on December 30, 2025 and for…

06.11.2025 | KPMG Law Insights

External personnel: authorities tighten checks with AI support

AI is a blessing for many companies, but it can also quickly become a curse, especially when authorities use the technology to uncover legal violations…

06.11.2025 | KPMG Law Insights

Deforestation regulation – simplification instead of postponement?

In September, the EU Commission wanted to postpone the EUDR deforestation regulation. On October 21, 2025, it published a comprehensive proposal to simplify the EUDR

05.11.2025 | KPMG Law Insights

Employer of Record now not subject to authorization after all – change of heart at BA

On October 1, 2025, the Federal Employment Agency (BA) updated its technical directives and made a U-turn with regard to the so-called employer-of-record model: In…

03.11.2025 | KPMG Law Insights

CO₂ contracts for difference: Participation in the preliminary procedure is a prerequisite for funding

Companies can apply for funding in the preliminary procedure for the climate protection contracts program until 1 December 2025. The funding from the Federal Ministry…

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