Where can you use LocalBitcoins? In the United States, Argentina, Denmark, Norway, Russia, Venezuela, Brazil, India, Mexico. In virtually all the first world, second world and third world countries with a demand for LocalBitcoins. Where are they nog longer available? In Germany.
LocalBitcoins tweeted that it shall cease its services in Germany due to regulatory reasons. We are hoping that this is only temporary. More details are currently unknown.
LocalBitcoins is a platform which mediates between people who want to exchange Bitcoin for cash. According to freelance Bitcoin writer, Christoph Bergman, who has been writing about Bitcoin for the past year and a half (420 articles so far), it’s virtually impossible to start-up a Bitcoin business in Germany.
Bitcoins.de and BitcoinCommodities.com exist since 2011, BitcoinBerlin was founded in 2012 and since BitcoinBerlin was placed under the supervision of Bitcoin in 2013, we have not heard of any news about any new Bitcoin start-ups in Germany. No new online wallets, no new payment services, no new markets, no new exchange platforms. Not even one.
All over the world Bitcoin ATMs are popping up, just not in Germany. This is not because the Germans don’t like Bitcoin. The demand for Bitcoin in Germany is even the second highest in the world, right behind the United States. It’s because, even if you would receive a license from the BaFin (Federal Financial Supervisory Authority), most business models would fail because they would probably have to pay a turnover tax in Germany for the Bitcoins that were earned through business transactions.
This is probably the reason why Coinbase excluded Germany when it started its European expansion, and is most likely also the reason why companies such as Showroomprivé do not provide any Bitcoin related payment methods to their German customers.
It’s often said that China is intolerant towards Bitcoin. However, in China there are payment service providers, online wallets and everything else that belongs to a Bitcoin market. In Germany there are no such things and often, the only solution for many German Bitcoin enthusiasts is to move to another country such as Switzerland, the Netherlands, the UK or Portugal.
Now that LocalBitcoins has left the German market it seems Bitcoin has reached a new low in Germany.