Category Archive : Germany

Column-Crypto regulators may see 10% household exposure as high watermark :Mike Dolan

So far this year the leading crypto ‘currencies’ such as Bitcoin and Ether have dropped 40-50% and there’s been an earthquake in the parallel ‘stablecoin’ world of supposedly pegged tokens that act as links from regular finance to the twilight zone of crypto, or ‘decentralised’, finance.

Another typical year in the nether regions of finance? Caveat emptor, some might say.

But the latest twists touched another nerve among governments and central banks who fear they’ve let this ecosystem get out of hand without proper oversight or adequate transparency to reach levels beyond which they may find it difficult to control or shore up.

G7 finance chiefs meeting in Germany late last week cited the crypto turmoil and urged its Financial Stability Board “to advance the swift development and implementation of consistent and comprehensive regulation.”

French central bank chief Francois Villeroy de Galhau reinforced the message this week and upped the urgency at the World Economic Forum in Davos, warning of lax investment protection as well as money laundering risks.

“It’s an emergency question now… I strongly hope we will have this regulation in Europe this year,” Villeroy said.

While still relatively small compared to stocks, bonds or real estate, two surveys released this week from the U.S. Federal Reserve and European Central Bank show that at least 10% of all households in both regions have dabbled in crypto as an investment over 2021.

The Fed’s annual “Survey of Household Economics and Decisionmaking” report polled 11,000 adults late last year and painted a relative picture of rude health for consumer finances overall – conducted though it was before one of the worst starts to a year in more than 20 years.

Asking about cryptocurrency for the first time, the survey found 12% of adults used or held cryptocurrency for investment in the previous 12 months….


What happens if your NFT gets stolen? | City & Business | Finance

The cryptocurrency world has stagnated recently, with the LUNA collapse knocking billions off the market in an instance. Despite this, NFTs remain popular, with new collections constantly popping up. People who decide to pour capital into the market must shoulder its inherent risks, as some people have had highly valuable tokens stolen.

What happens if your NFT gets stolen?

Stealing an NFT is no easy feat, as hacking collections on the blockchain is near impossible.

Nevertheless, experienced hackers can and have used exploits to illicitly obtain people’s tokens.

Methods they use usually include phishing, malware and other viruses that have holders hand over their secret recovery phrases or crypto wallet.

READ MORE: Will crypto go back up? Experts ‘optimistic’

If an NFT is stolen, holders will need to contact the exchange from which they bought the token.

Some will require NFT theft victims to send an email outlining their situation, including details such as the token ID and URL.

Those who find their stolen NFTs up for sale can report the token via the platform and should then send a follow-up email.

While some may eventually reclaim their stolen JPEGs, many who lose them won’t, and the lack of market regulation leaves people open to scams with little recourse for refunds.

Hollywood star Seth Green recently became one of the most prominent victims of NFT theft.

The actor and producer was robbed of several early this month in a phishing scam.

On May 8, he revealed on Twitter four of his NFTs were phished and asked others within the NFT community for their help.

One of those, a “mutant ape” from Bored Ape Yacht Club, was sold for $42,000.


The ape now sits in a collection named GBE_Vault, where it has remained since May 7.

For most people, losing an NFT is a straightforward case of losing money on an investment.

But for Mr Green, the theft had significant implications, as he was planning to use the mutant ape for an upcoming show.

On May 21, during an appearance at…


Investors Unfazed by Bitcoin (BTC) and Crypto Sell-Off, Says Grayscale CEO Michael Sonnenshein

The CEO of digital asset titan Grayscale Investments is weighing in on the state of Bitcoin (BTC) as the signature crypto asset deals with an ongoing market correction and negative sentiment.

In a new interview with Yahoo Finance at the World Economic Forum conference in Davos, Switzerland, Michael Sonnenshein says that investors are looking at Bitcoin’s recent sell-off as more of an opportunity than a crisis.

“I think we have to examine crypto in the context of what’s been happening in the broader markets. You’ve seen rising rates in the US [which] has caused a lot of volatility in a lot of different asset classes, crypto along with it.

The recent sell-off though, from what we’re hearing from investors, has not deterred them. If anything, they’re looking at it opportunistically and a pullback like this is nothing new in the crypto space.”

Sonnenshein discusses how Bitcoin on the one hand does mirror gold’s role as a safe-haven asset but notes that BTC’s relative youth versus traditional investments means making direct comparisons can be tricky.

Our standpoint on this is largely when you’re looking at something like Bitcoin, you’re looking at something that for us really does look, feel and act like a digital gold.

If you look out over a longer time horizon, you will see crypto being uncorrelated to other asset classes, although oftentimes it is scrutinized because we do only have the last 10-plus years of trading history to really examine.”

The Grayscale CEO says he hopes governments end up providing clear legal guidelines in order to foster further innovation within the industry.

“We’re spending a lot of time in DC and that’s also a reason that the Grayscale team is here in Davos. Regulation around crypto and the entire ecosystem is paramount.

One thing that we really would like to see on the heels of the White House executive order, what you’ve seen out of the UK government, what you’ve seen in Germany recently….


Cryptocurrency Mining Market Dynamics, Future Trends, Industry Growth, Regional Overview and Size Estimation By 2031

The global cryptocurrency mining market size is expected to grow from USD 1.6 billion in 2021 to USD 2.8 billion by 2030, at a CAGR of 7.5% from 2022 to 2030. Cryptocurrency mining is a mechanism from which cryptocurrencies generate new coins and validate new transactions. Over the last few years, miners have become very sophisticated, employing complex machinery to speed up mining operations. As a result, companies are developing advanced mining machines for their clients. Furthermore, some businesses are collaborating with others to provide customers with a variety of services. As a result, as the demand for a mining pool grows in the market, so does the demand for advanced mining machines. However, the high transaction fees associated with it may limit the market’s growth.

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Advances in technology to make cryptocurrency mining more profitable by reducing power consumption while increasing the hash rates are expected to drive the market’s growth over the forecast period. Over the forecast period, technological advancements to make cryptocurrency mining more profitable by reducing power consumption while increasing hash rates are expected to drive the market’s growth. The increasing use of cryptocurrency for a variety of applications, as well as the subsequent increase in cryptocurrency mining, which is encouraging cryptocurrency miners to form mining pools to pool their computational resources over a network, are both expected to contribute to market growth. The rising popularity of various cryptocurrencies, which is driving demand for cryptocurrency-specific hardware, is expected to play a significant role in propelling market growth. Continued digitalization, the proliferation of smartphones, and the increasing internet penetration rate are some of the other factors that bode well for the market’s growth over the forecast…


Unbanked Joins Coinbase and other leading Crypto Firms to Collaborate on TRUST expansion

Unbanked Joins Coinbase and other leading Crypto Firms to Collaborate on TRUST expansion

Since our inception, Unbanked has always had a deep commitment to operating in a compliant way. This solution will become the gold standard for all firms handling cryptocurrency in the future.”

— Ian Kane, CEO and Co-founder of Unbanked

CHARLOTTE, NC, USA, May 24, 2022 / — Unbanked has announced the international expansion of the TRUST (Travel Rule Universal Solution Technology), a global and industry-driven solution designed to comply with Travel Rule (TR) requirements while protecting the security and privacy of our customers. Launched in February 2022, the TRUST platform enables cryptocurrency firms to securely send information legally required under the Travel Rule. This expansion now includes Singapore and Canada and we are also actively building coalitions in Germany, Europe, APAC, and elsewhere.

A Bank Secrecy Act (BSA) rule [31 CFR 103.33(g)]—often called the “Travel” rule—requires all financial institutions to pass on certain information to the next financial institution, in certain transmissions involving more than one financial institution. Cryptocurrency firms like Unbanked have to satisfy this rule, which was written before crypto even existed. The TRUST platform is designed to be a global TR compliance solution, with the flexibility to adapt to different jurisdictions’ requirements, while delivering top-tier safeguards to customers’ privacy and security. These safeguards include no central store of personal data, proof of address ownership, and core security and privacy standards.

Unbanked joins a leading group of Cryptocurrency firms who came together to create a solution for the crypto space while continuing to protect the security and privacy of our customers’ personal information. This unprecedented effort led to a jointly designed solution, TRUST, which we hope…


How Germany Has Changed the Future of Crypto

Countries around the world are being forced to recognize that cryptocurrencies are here to stay. This newfound recognition subsequently elicits taxation and legislation from governments on how to manage profits.

In general, taxes are typically seen as barriers to developing an economy. As a result, corporations are incentivized to conduct more business when taxes are low because it simply costs less to do business. 

Similar thinking can be applied to crypto. A country that has low taxes incentivizes economic development around crypto and blockchain technologies. As a result, both citizens and businesses can reap the rewards.

Image source: Getty Images.

This is the goal of countries like El Salvador, which still have undeveloped economies and yet have no capital gains taxes on any Bitcoin (BTC -3.53%). They are trying to stimulate the economy and attract a new age of entrepreneurs.

Western economies typically view cryptocurrencies as more similar to physical property and, therefore, taxable assets. Yet just recently, one of the leading economies in the world announced that it would be following a more similar strategy to that of El Salvador.

A new home for crypto

Last week, Germany’s Ministry of Finance announced that they would be changing their stricter tax laws to one of the most friendly in the world for crypto investors. Holders will not be taxed on their profits as long as they don’t sell within less than a year. 

The 24-page report was one of the most comprehensive and up-to-date pieces of legislation that reflects the current crypto economy. There is guidance on staking, lending, airdropping, and much more. The Ministry of Finance even went as far as classifying tokens into different categories like utility, security, equity, debt, and payment.

Considering that about 9% of all Bitcoin nodes and 14% of Ethereum (ETH -4.68%) validators are in Germany, it makes plenty of sense that the country would be leading the way. Moreover, the new…


G7 calls for swift and comprehensive crypto regulation

G7 countries recently convened a meeting in Bonn and Königswinter, Germany, from May 18–20. Regulation of crypto assets was one of the important topics discussed in the meeting. Finance ministers and central bank governors unanimously urged for a swift and comprehensive regulation of crypto assets, following the recent slowdown of the crypto market and the failure of stablecoins, LUNA and UST.
The 7 industrialized countries gave a clear blueprint of the course of action to be taken towards regulating crypto assets and benefiting from the digital innovation simultaneously:
– G7 particularly supported the work by the Financial Stability Board (FSB) to monitor and address financial stability risks associated with all types of crypto-assets.
– The Financial Stability Board is an international body that monitors and makes recommendations about the global financial system.
– The G7 called for high global cooperation to address regulatory issues associated with the use of crypto-assets, including in cross-border payments.
– The group called FSB to work in coordination with international organizations towards creating and implementing consistent and holistic regulation of crypto-asset issuers and service providers.
It mentioned the following measures for the regulation of stablecoins particularly:
+ The stablecoins should also be brought under the purview of the same standards as the rest of the financial system.
+ G7 also stated the need for rapid implementation of the Financial Action Task Force (FATF) ‘travel rule’ and stronger disclosure and regulatory reporting, with respect to reserve assets backing stablecoins.
+ The group affirmed that no global stablecoin project would begin operation until it completely addresses the necessary legal, regulatory and oversight requirements through appropriate design and by adhering to applicable standards.
– The participants highlighted the opportunities and implications of Central Bank Digital Currencies (CBDCs) and…


MultiBank Group Reveals New Crypto Brand,

The MultiBank Group, one of the world’s leading online financial derivatives brokers, has unveiled the new brand identity of its blockchain and cryptocurrency arm, The world’s most regulated derivatives broker ushers in its Web3-focused era with a new sponsorship of Masters-winning golfer Danny Willett.

Formerly known as MEX Digital, will provide new digital assets services from mid-2022, the first foray into cryptocurrency and blockchain from MultiBank Group – one of the world’s largest financial derivatives firms with a paid-up capital of over $322 million.

As part of its new brand launch, has been named the Official Partner of Masters-winning British golfer Danny Willett in all professional golf tournaments and exhibitions for the 2022 season. The partnership has teed off at the Betfred British Masters 2022, which Danny Willett hosted at The Belfry from 5-8 May 2022. Willett will wear the logo on the left collar of his playing shirt. The seven-time title-winner also plans to release a series of NFTs in partnership with and will feature on the website and marketing materials.

Betfred British Masters 2022 host Danny Willett said: “I’ve been looking at getting into the world of cryptocurrency and digital assets for some time now but didn’t have enough knowledge, experience or confidence in that area. That was until I was introduced to the MultiBank Group. I’m delighted to be working alongside them as I start out in cryptocurrency, and we’re all excited to see the new platform go live in the coming weeks.”

“Unveiling the new brand is the first step in a multi-year blockchain and cryptocurrency roadmap for the MultiBank Group,” said MultiBank Group Chairman Naser Taher. “We look forward to revealing more detailed plans in the near future for our community of 320,000 global users. But as we’ve shown in building MultiBank Group into…


Crypto markets may pose risks to wider financial stability, ECB warns – Metro US

FRANKFURT (Reuters) -Cryptocurrencies will pose a risk to financial stability if the emerging sector maintains its rapid growth of the last two years and financial firms deepen their involvement, the European Central Bank (ECB) said on Tuesday.

The crypto market slumped sharply this month after the downfall of major “stablecoin” terraUSD. The crash has led to calls from the world’s top financial leaders for “swift and comprehensive” regulation of the sector.

Cryptocurrencies – historically a niche asset favoured by risk-hungry investors, exploded in size during the COVID-19 pandemic. Institutional investors especially were drawn by claims that bitcoin acts as a hedge against inflation and offers high returns in the face of low interest rates.

The crypto sector hit a peak of $2.9 trillion last November up from less than $300 billion at the start of 2020. Still, bitcoin, the biggest token, since November has slumped by over half, dragging the value of the overall crypto market down to around $1.2 trillion.

The ECB in its biannual financial stability review said exposure to crypto by banks and other financial institutions on a wide scale could put capital at risk and damage investor confidence, lending and financial markets.

“Systemic risk increases in line with the level of interconnectedness between crypto-assets and the traditional financial sector,” it said.

Highly leveraged trading offered by crypto exchanges has seen investors borrow funds to buy greater exposure to crypto, also heightening financial stability risks, the ECB noted.

Furthermore, data shortcomings in the sector are also hindering the assessment of financial risks, it said, warning that publications by crypto exchanges and data aggregators should be treated with caution.

Retail investors, long at the heart of crypto trading, have also piled in, the ECB noted.

One in ten euro zone households have bought crypto such as bitcoin, its Consumer Expectation Survey, which…


Decrypting financial stability risks in crypto-asset markets

Prepared by Lieven Hermans, Annalaura Ianiro, Urszula Kochanska, Veli-Matti Törmälehto, Anton van der Kraaij and Josep M. Vendrell Simón[1]

The stellar growth, volatility and financial innovation currently seen in the crypto-asset ecosystem, as well as the rising involvement of institutional investors, show how important it is to gain a better understanding of the potential risks that crypto-assets could pose to financial stability if trends continue on this trajectory. Systemic risk increases in line with the level of interconnectedness between crypto-assets and the traditional financial sector, the use of leverage and lending activity. It is important to close regulatory and data gaps in the crypto-asset ecosystem to mitigate such systemic risks.

1 Introduction

Crypto-assets are currently the subject of intense policy debate. The different segments of crypto-asset markets include unbacked crypto-assets (such as Bitcoin), decentralised finance (DeFi) and stablecoins.[2] Crypto-assets lack intrinsic economic value or reference assets, while their frequent use as an instrument of speculation, their high volatility and energy consumption, and their use in financing illicit activities make crypto-assets highly risky instruments. This also raises concerns over money laundering, market integrity and consumer protection, and may have implications for financial stability.

Despite the risks, investor demand for crypto-assets has been increasing. This exuberance stems from, among other things, perceived opportunities for quick gains, the unique characteristics of crypto-assets (for instance programmability) compared with conventional asset classes, and the benefits perceived by institutional investors with regard to portfolio diversification. Major players in the payments industry have also stepped up their crypto-asset-based services, enabling easier retail access. While crypto-asset markets currently represent less than 1% of the global financial system in terms of…