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How do Curacao operators work in Germany?

How do Curacao operators work in Germany?
30 Jan 2023
As you probably know, Germany is one of the most profitable markets due to the high financial capabilities of its residents. Not so long ago, regulation appeared in Germany along with a new regulatory body responsible for issuing licenses and blocking illegal operators.

Sufficiently strict legislation was adopted, according to which rather stringent requirements were introduced for all operators in Germany. Among them are restrictions on the number of deposits, restrictions on maximum rates, and the introduction of a tax. They led to the fact that the feasibility of obtaining a German license became minimal at the beginning of 2023.

Also, working in Germany under a European license, such as a Maltese one, has become very unprofitable for operators, since German tax will also have to be paid. It’s a similar story to other European licenses.

Until recently, it was possible to work in Germany with a Curacao license and white processing services. However, a few months ago, white solutions for this market began to restrict the ability of operators to work without a local license or a European license. In particular, one of the important and key players among the processing systems is Sofort – it has stopped accepting Curacao companies for the German market.
How to operate in the German market?
If you know the industry, you might think that the only solution left is to work with the MCC code.

No, it's not. As you know, the gaming industry is very dynamic and people constantly look for new ways to solve upcoming problems. Such a solution is to apply for a German license. For white-collar processing services, the presence of an application for a license was (and still is) sufficient reason to allow the Curacao company to work white-handed on the German market.

This possibility exists due to the transitional period in the legislative provisions for licensing in Germany. And yet, to submit such an application, even if there was no desire to receive it, it was necessary to prepare a package of necessary corporate documents and policies for the application to be accepted.

A few months ago, the German regulator realized that many applicants are abusing this opportunity and do not intend to get a license, but provide a minimum set of documents sufficient to apply. After that, a new procedure was introduced – now, to obtain a document on applying for a license, it is necessary to fully prepare the entire list of necessary documents, which will be pre-checked by the regulator before issuing such an application for a license, which increases the cost of the procedure and complicates preparation for it.

In addition, there is a small possibility of obtaining a white MCC code if there is a letter from lawyers that such an application is being prepared for filing or has been filed. Naturally, as alternative methods, you can use cryptocurrency or the Open Banking service.
What is Open Banking for gaming companies?
Open Banking is a service that allows you to make instant payments from a bank account without using credit or debit cards.

Hopefully, you can now see that no matter how difficult the situation is, it is likely, not hopeless. Industry professionals may come up with options that can solve your problem.

About the author
Contact the author:
Vladyslav Yarovoi acts as a managing partner at the esteemed Rikk law firm. With his Master of Law and expertise in a high-risk business, Vladyslav has become an authority on providing legal support for IT businesses; from ensuring their successful launch to making sure they are ready for IPO.
Vladyslav Yarovoi

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