Germany adheres to regulations set by The European Banking Authority (EBA), which “defines virtual currencies as a digital representation of value that is neither issued by a central bank or public authority, nor necessarily attached to a legal tender. VCs are accepted by natural or legal persons as a means of payment and can be transferred, stored or traded.”
First Instance of Institutional Trading
VPE Bank (WertpapierhandelsBank AG) has partnered with solarisBank to expand their asset trading to cryptocurrencies. They have released a proprietary cryptocurrency trading platform that complies with all necessary KYC and AML laws. The program is automated, and also provides a secure wallet for all associated coins to give direct access to the investors.
The goal of solaris is to accelerate the fintech industry. The company began in 2016 after receiving their banking license. They gained an early partnership with Mastercard to begin innovating payment-processing methods. Last month the organization raised $70 million in Series B funding from Arvato Financial Solutions, SBI Group, BBVA, Visa, Lakestar and ABN AMRO's Digital Impact Fund.
Real Estate/Cryptocurrency Investment Fund Hybrid
The German financial regulatory body has granted licensing to Bitreal to integrate cryptocurrency assets with their real estate holdings. This will be the first fund of its kind in Germany. The fund is still raising capital, but hopes to raise more than $40 million, with expected returns of 15% annually over seven years.
As with solarisBank, Bitreal is working to bring the finance industry up to speed, and garner interest from younger generations. They are launching their fund in conjunction with an ambassador program.
Many of the cryptocurrency funds have closed in only the short time span of popularity. However, it is likely that more will open in 2018 than did in 2017. Blockchain technology is now reaching the public and governing bodies around the world as the potential behind how coins can simply be traded on exchanges.
By: BGN Editorial Staff