All news that affects the crypto markets significantly usually comes either from Far East Asia (Japan and Korea) or Far West (Majorly USA). But the recent news flow from the past couple of months has shifted all eyeballs to Europe as the countries are making some serious attempts to make crypto investing friendlier.
Regulatory hurdles reducing Europe
Europe has been a very small crypto market in Europe despite huge potential thanks to regulatory hurdles presented by certain countries and regulators at European Union. But with recent news flow that is coming in shows that finally things are changing as Europe marches ahead to claim a much bigger role in the world of cryptocurrencies.
The biggest market in Europe has been Germany and the nation hasn’t disappointed when it came to cryptos as well. According to the news Germany’s second-largest stock exchange, Boerse Stuttgart Group, is set to launch a cryptocurrency trading platform in the first half of 2019. The firm announced this week it has partnered with a local fintech company solarisBank to create an engineering infrastructure for digital assets trading. solarisBank, which operates with a banking license in the country, will also be Boerse’s banking partner for the venture.
Another news that hit the markets again came from Germany where German blockchain start-up Bitwala announced that it has launched crypto banking in Germany. With this move, Bitwala claims to “close the gap between crypto and traditional banking,” The banking solution for Bitwala was (again) developed in partnership with local fintech start-up SolarisBank, which has a banking license and is fully regulated by the German financial regulatory authority Federal Financial Supervisory Authority (BaFin) and the European Central Bank (ECB).
Moving from German to Switzerland, where the world got its first crypto-based exchange-traded product (ETP). This move of listing a crypto-based ETP by SIX exchange in Switzerland ended almost a 2-year wait to get an exchange-traded product for cryptos. While the SEC is still far from approving a BTC ETF, Swiss Exchange has just moved ahead by a few steps as the volumes on the exchange for this crypto product are at all times highs.
Moving ahead and Sweden’s Nasdaq already has Bitcoin ETN. In August 2018, the Swedish exchange of Nasdaq launched a new alternative, an overseas-listed instrument which allows U.S. investors to take a secure route to trade and investing in bitcoin. Although an exchange-traded note (ETN) — called the Bitcoin Tracker One — has been trading on the Nasdaq Stockholm exchange since 2015, It has recently started quoting in U.S. dollars. Though it was listed on the Swedish stock exchange, a U.S. dollar-denominated version was capable of allowing. global brokerages to offer it to American investors.
These news flows haven’t gone unnoticed and even Joseph Young tweeted about the same
Europe's crypto market has been relatively small for years possibly due to regulatory uncertainty. Some changes are starting to happen.
1. Germany's stock market investors to be able to trade crypto by next year
2. Switzerland has Amun crypto ETP
3. Sweden Nasdaq has Bitcoin ETN https://t.co/QsfBTfc7Gu
— Joseph Young (@iamjosephyoung) December 13, 2018
With so much of fundamentally positive news flow coming in from Europe it looks like the continent is in the right direction towards becoming a crypto friendly region. As more countries open up to cryptos, the adoption and use of the coins will be way beyond just trading and speculating.
Will Europe be able to set an example for other regions on how to move mainstream with cryptos? Do let us know your views on the same
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.