Crypto Payments in Germany: Key Features to Know

Germany’s roadmap to virtual currency regulatory framework has been characterized by a balanced mix of pragmatism and innovative mechanisms.  The primary regulatory establishment for cryptocurrencies in Germany is the Federal Financial Supervisory Authority (BaFin).

Classification of Virtual Assets

Germany distinguishes between three main categories of digital assets: cryptocurrency tokens (cryptocurrencies), utility tokens, and security tokens. Cryptos are considered legal means of payment in Germany, which sets it apart from many other countries.

Consumer Protection

Germany has adopted a proactive approach to consumer protection, requiring cryptocurrency businesses to comply with anti-money laundering (AML) and Know Your Customer (KYC) international requirements.

Licensing and Registration

  • Crypto Exchanges: In 2020, Germany implemented the European 5th Anti-Money Laundering Directive (AMLD5) into national law, which brought cryptocurrency exchange platforms under BaFin’s regulatory oversight. This means that crypto exchange service providers must obtain a license from BaFin to operate legally.
  • Crypto Wallet Providers: Providers of cryptocurrency wallet services, which enable the storage of private keys, are also obligated to BaFin’s registration norms. However, registration is a less stringent process than obtaining a license.
  • Token Issuers and ICOs: Companies that issue security tokens or conduct initial coin offerings (ICOs) must follow mandatory securities regulations in Germany.

The Current Status of Virtual Currencies and Payments


Germany has seen growing acceptance and adoption of virtual assets, with numerous businesses, including some major retailers, beginning to accept Bitcoin and altcoins as a means of payment. This is driven by a symbiosis of consumer demand and a recognition of the undisputed efficiencies and cost savings offered by cryptocurrencies.

Regulatory Clarity

The regulatory clarity provided by Germany has been instrumental in fostering a robust framework for cryptocurrency businesses and venture capitalists. This has encouraged innovation and investment in the digital ecosystem, with several startups and fintech companies establishing in Germany.


Germany provides clear guidelines on the taxation principles for virtual currencies. Cryptocurrency transactions are subject to capital gains taxation, and businesses must maintain accurate records of their crypto transactions for tax purposes.


Despite the progress, there are certain nuances that remain up-to-date. The volatility of cryptocurrencies poses a risk for VCs and ordinary people, and concerns about potential capital laundering and fraud still exist. Additionally, the regulatory burden on businesses seeking to enter the crypto market may hinder innovation to some extent.

Cryptocurrency Payment Gateway Options

Once businesses have a solid understanding of the legal framework, they can explore various virtual currency payment gateway options in Germany.

Crypto Payment Gateway Comparison


EU-based crypto exchange service provider SpectroCoin is one of the pioneers in the crypto and blockchain adoption sector. It was founded more than 10 years ago and presently includes cryptocurrency wallets, exchange services, and merchant payment gateways.

SpectroCoin features multiple instant pre-order templates, POS URL links, versatile payment options, e-commerce plugins, and integration methods. In fact, it is one of not so many crypto exchange service providers rendering crypto sales via multiple popular gateways.


Similar to SpectroCoin, Coinpayments was also established in 2013 and is famous as one of the world’s popular crypto payment providers for iGaming and eSports. Its main differentiating factors encompass one of the lowest fees in the crypto processing niche and customizable checkout forms via cutting-edge API instruments.


Undeniably, Switchere stands out as a relatively fresh and progressive player in the crypto exchange market. It is headquartered in Lithuania and provides a cornucopia of crypto payment gateway solutions for its partners. Particularly, Switchere API tools, e-commerce, iFrame, in-wallet top-ups, and many more.

Further, the company offers customizable crypto checkout forms (including turn-key Switchere-powered NFT Checkout) and fixed/floating crypto exchange rates. Switchere has all EU regulatory permits and proper licensing to conduct its crypto exchange services in more than 170 countries worldwide.

Germany’s approach to cryptocurrency regulation represents a balanced and forward-thinking model, where the government seeks to foster innovation while ensuring consumer security. The licensing norms and registration obligations for virtual currency businesses contribute to a safer and more transparent financial environment. The country’s approach to defining digital assets as legal means of payment is unique and fosters further adoption in many countries worldwide.

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