5. Legal Requirements in the Field of Virtual Currencies

The digital world brings new challenges, especially in the legal field. For example, it may be technically unproblematic to create and circulate a crypto currency based on blockchain technology, but this process has far-reaching legal consequences for the issuer. In Germany, issuers of crypto currencies are sometimes unaware that they fall under possible permit requirements of the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin). In particular, engaging in transactions requiring a permit without the appropriate permission is punishable by law, which could result in the initiation of administrative offense proceedings as well as the risk of liability under private law toward investors due to a public offering without a prospectus. The objective of the paper is to present the specific legal classification in the field of crypto currencies, taking into account the fundamental view of German law. When issuing or conducting transactions in connection with crypto currencies, the question arises in Germany whether these are subject to licensing.