Europe has lagged behind when it comes to crypto adoption, but if recent activities are of any indication, this could be about to change. Regulators in Germany have set forth more regulations. While in most cases regulations would be bad for crypto, in this case, it brings up more clarity, something investors all around the world are trying to get. Other developments include new investments, regulatory approval for STO and mobile carriers starting to accept crypto payments. These developments mainly come from two countries, Germany and Austria.
Venture capital firm launches new funds for crypto startups
The new fund is created by a venture capital firm named “Blockrock ventures”, based out of Hamburg. They aim to raise a total of 30 million euros for the fund, and so far have managed to raise more than 5 million euros. Unlike most venture capital funds, this one is aimed at fostering development and providing accelerator services, which are vital to a startup during its initial stages. The way the fund is positioned is a bit different from how most venture capital funds traditionally operate. There also have been rumors about the German Federal Financial Supervisory Authority (BaFin) issuing a new license to Blockrock which will allow them to manage funds in the tune of 100 million euros.
Firm gets a license to launch STOs
Black Manta Capital Partners, a financial firm based out of Luxembourg, has received MiFIDII license from BaFin. The said license is part of the MiFID II Directive by EU which replaced the Investment Services Directive (ISD). MiFID II Directive is a European Union law that provides harmonized regulation for investment services across the 31 member states of the European Economic Area. Companies involved in STO were required to get a MiFID II license. Once the company has received the license they are allowed to issue tokens. According to the company, it is a part of linking Europe and Asia under a single crypto platform, and the company has set its eye on Singapore already for exactly this goal.
Mobile operators to accept crypto payments along with Alipay and WeChat Pay
One of the largest mobile providers in Austria is planning to accept cryptocurrency for payment at certain store locations. A1, which services some 5.1 million mobiles and 2.1 million fixed lines across Austria, is testing cryptocurrency payments at store locations across Austria. Dash, Ethereum, Litecoin, Stellar and XRP will be available for payment.
The pilot program will also host payments for Alipay and WeChat Pay by the end of August. “Cash is a discontinued model,” said the head of A1’s business marketing Markus Schreiber.
German financial regulator BaFin has released its latest leaflet on August 16th, aimed at issuers of crypto tokens. The leaflet contains a summary of the current laws and regulations in Germany regarding crypto. It does not reflect any change in policy or law but a gentle reminder. This kind of approach is aimed at ringing clarity thus encouraging compliance which is in stark contrast with other nations, especially the USA. Germany has been one of the friendliest nations in the developed world with crypto, even giving it a status of a unit of the account back in 2013, essentially meaning it can be used for the purpose of tax and trading. And these leaflets are going to further enhance the image of Germany within the crypto community.
While crypto has been hit badly all around the World by regulatory as well as governmental pressure, this region of the world seems to deliver a breath of hope. The resilience of crypto is something that has amazed both critics and proponents of the new technology. The first crypto, Bitcoin came out during the financial crisis of 2008 and managed not only to survive the storm but thrive afterward. Bitcoin prices have taken a hit, but it is always stories like these small developments in Germany and Austria, that keeps the whole story going.