Category: Bank

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Germany offers special accounts to crypto firms

Categories Blockchain, Cryptocurrency, Regulatory, Bank, Technology, Tokens

Germany offers special accounts to crypto firms

Solarisbank, the Berlin-based BaaP institution has just announced the intention to launch a new banking service that will serve clients from the crypto and blockchain industry.

The soon-to-be-launched resource known as ‘Blockchain Factor’ will provide tailored financial management services to businesses that are directly, or indirectly dealing with cryptocurrency and blockchain related services.

The struggle to build banking relationships

Over the last couple of years, cryptocurrencies and related services have increased significantly in popularity yet many still struggle to build relationships with their banking providers. In some cases, many banks and other financial institutions have closed business accounts of companies such as exchanges and brokerages leaving these businesses stranded. But now, the German fintech company Solarisbank is planning to offer a solid banking solution complete with an account manager who fully understands the technology.

“The Blockchain Factory will be used by Solarisbank to offer banking services to companies whose business is directly or indirectly based on cryptocurrencies and blockchain technology — One example of these services is the ‘Blockchain Company Account’ for the banking business of blockchain companies,” Solarisbank explains.

“Furthermore, services for global cryptocurrency marketplaces will be made available to make it easier to buy and sell fiat currencies; such as the Solarisbank ‘Automated Trust Account’, an automated escrow account for cryptocurrency market places.” 

Since the bank’s inception back in 2016, they have done well to carve out a solid reputation in the fintech marketplace. After entering into a strategic partnership with MasterCard, they raised over $70 million in a Series B fundraising round with contributions from firms such as SBI Group, Visa, BBVA, Lakestar, and ABN Amro.

“There is high demand from the blockchain world for a licensed partner that forms the technological and regulatory bridge to traditional banking — as a technology company with a banking license, we are the natural partner,” Roland Folz, the CEO of Solarisbank said.

Establishing partnerships

The fintech bank has plans to establish partnerships with crypto companies that have banking and debit card requirements.

CTO of Sloraisbank, Peter Grosskopf explains: “The fiat world is not about to dissolve. We are moving towards a hybrid future, in which the blockchain world still has to prove itself.”

In June 2018, Binance announced that they had been able to successfully open a bank account in Malta, although the name of the bank has been kept strictly under wraps. Whether the Germans will lead by example and pave the way for not just crypto-friendly banking but fully fledged crypto departments within financial institutions remains to be seen.

 

To learn more about ICO Legal Services in Malta please follow this link.

Contact us directly on +356 20103020 or by email at [email protected] to find out more.

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Binance is backing the world’s first decentralised bank

Categories Blockchain, Cryptocurrency, Malta, Bank, The Blockchain Island, Technology, Cryptocurrency Exchange, Regulation, Tokens, Binance

Binance is backing the world’s first decentralised bank

On July 4th, the Maltese government unanimously passed the 3rd reading of three blockchain regulations. Many blockchain companies saw an opportunity to relocate on the Blockchain island including, Binance.

In a report issued by Bloomberg, stated that Binance is backing a project, to build the first-ever decentralised bank in Malta. They stated that a 5% stake has been invested by both Binance and the Maltese government to make this decentralised, community-owned bank happen.

How will it work?

The name given to this decentralised bank is, Founders Bank. There will be no ownership of the bank, this includes any corporations, persons or entities. The only owners of the bank will be those who purchase a portion of its token-based equity.

The blockchain equity platform, Neufund will take care to fundraise this project.

In a recent speech, Joseph Muscat, Malta’s Prime Minister said that he is very optimistic about the viability of this project. He stated that “The concept sounds confusing right now, I have no doubt that it will form the base of a new economy in the future. Just as we attribute value to pieces of paper, so too will future generations attribute value to electronic storage systems.”

 

E&S Group is a leading law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at [email protected] to find out how E&S can help you in ‘making things happen’.

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Microsoft teams up with two leading Asian firms

Categories Blockchain, Cryptocurrency, Bank, Technology

Microsoft teams up with two leading Asian firms

The Taiwanese subsidiary of Microsoft has announced its collaboration with a large tech investment company called China Binary Sale Technology and another called High Cloud to create a platform which will encourage further enterprise blockchain development. The news was broken at the end of last week via a press release from Microsoft.

The Microsoft Azure cloud platform will be offered as a base for the China Binary blockchain platform. The three-way collaboration is intending to transform a range of industries such as e-commerce, finance, and entertainment with a geographical focus on the Asia-Pacific region.

Exciting times ahead

The General Manager of Microsoft Taiwan, Sun Jikang expressed his excitement and confidence regarding the ability of Microsoft to both improve the operational speed and overall security of the China Binary blockchain. He also added that Taiwan has a solid technological potential as well as large manufacturing sectors, a Research and Development Foundation and an “excellent geographical location”.

Blockchains important role

Sun Jingtao, the founder of China Binary noted the important role that blockchain technology has in the spheres of fintech, business, science, and many other industries. He also emphasises the importance of creating synergy between blockchain applications and other technologies such as the Internet of Things, Artificial Intelligence, and biometrics.

At the end of May, the Taiwanese government launched a parliamentary blockchain group that would further promote the development and growth of the technology. On May 14th, the Tapei Fubon Commercial Bank made an announcement that it had deployed a blockchain-based payment system that saw them become the first bank in Taiwan to do this.

 

E&S Group is a leading law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at [email protected] to find out how E&S can help you in ‘making things happen’.

For more information click the link.

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European Parliament says that crypto is not likely to challenge central banks

Categories Blockchain, Cryptocurrency, European Commission, Bank, European Parliament, Technology

European Parliament says that crypto is not likely to challenge central banks

In a report released by the European Parliament, they have stated that they do not believe that cryptocurrency has the power to challenge the dominance of central banks.

The most recent Monetary Dialogue report was issued on June 26th and the European Parliaments Committee on Economic and Monetary Affairs said that whilst cryptocurrencies have significantly improved the safety, speed, and transparency of financial transactions, it is unlikely that they pose a threat to fiat currencies.

Positive attributes

This analysis was carried out by the Centre for Social and Economic Research, a not-for-profit research institution that is based in Poland. Early on, they noted the positive changes that cryptocurrencies could bring to transactions and also stated that they are used globally with no limitations on borders or geographical constraints.

Real market demand

The report states that cryptocurrencies respond to “real market demand” and that there is every chance they have the potential to become a fully-fledged private money as well as an integral part of the global economy. The report then goes on to state that whilst this is all positive, it remains unlikely that cryptocurrencies will pose a threat to central banks and traditional fiat currencies, especially in countries where sovereign currencies are very popular.

Despite the widespread popularity of fiat currencies, there are a few exceptions. Countries such as Venezuela is a small jurisdiction but the sovereign currency is incredibly volatile. In a case such as this, cryptocurrencies could offer a valid alternative to unstable fiat currencies.

 

If you have any questions in relation to ICOs, please contact us on [email protected]

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European banks complete the very first live, blockchain financial trades

Categories Blockchain, Cryptocurrency, European Commission, Bank, Trading, Regulation

European banks complete the very first live, blockchain financial trades

A group of European banks have announced that they have completed the very first, live blockchain-based trans-border transactions. The trades in question were made via a jointly developed we.trade blockchain platform.

These real-life trades were executed over the previous five days amongst 10 companies and were facilitated by four leading banks that utilised the blockchain-based platform. HSBC, one of the institutions that are using the platform, has claimed that three of its clients have been able to complete an open account transaction via we.trade, in Europe.

We.trade is build on the IBM Blockchain Platform using its Hyperledger Fabric technology. It was created and developed by Deutsche Bank, HSBC, KBC, Natixis, Nordea, Rabobank, Santander, Societe Generale, and UniCredit, with the purpose of boosting the efficiency of cross-border transactions in the financial sphere.

As reported back in April, we.trade was supposed to start testing the platform in May with an expected commercial implementation due in the summer. Back then, Societe Generale told the press that the reason for the quick development of the platform was due to the fact that it was designed to be used by SME’s trading within Europe.

IBM’s blockchain lead in Europe, Parm Sangha stated:

“As we.trade has moved from pilot applications to conducting live transactions across borders, it has demonstrated the power of blockchain technology in an enterprise setting.”

The platforms Chief Operating Officer has announced that the next step will be to encourage buy-in from other EU banks and clients further afield.

 

Interested in ICOs Legislation in Malta? Contact us directly on +356 20103020 or by email at [email protected] to find out more.

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Malta Bankers Association Chairman gives crypto a big vote of confidence

Categories Blockchain, Cryptocurrency, Malta, Bank, The Blockchain Island, Technology, Cryptocurrency Exchange, Regulation, Tokens, Malta Bankers Association

Malta Bankers Association Chairman gives crypto a big vote of confidence

Marcel Cassar, the new Chairman of the Malta Bankers Association stated this week, that blockchain technology is a “bankers dream”. He also added that he believes cryptocurrencies are here to stay.

It seems that Cassar believes that the banking industry has a duty to keep up to date with the fast-past nature of the digital word, and it should move to embrace new technologies instead of shunning them. He compared the present ecosystem to “rush hour gridlock trapping an F1 car”.

Cassar added; “Going by our experience of technological innovation, a blockchain revolution of business and government could still be years away because many barriers would need to fall in the meantime.”

He also stated that he believes blockchain is a foundational technology that has the power to create new platforms for both economic and social infrastructures.  He also distinguishes between cryptocurrencies and payment technologies; “the currency is the ‘what’ while the payment technology is the ‘how’.”

He then brought up the still unanswered question of how we should be defining cryptocurrencies and seeking to regulate them, adding that he sees them as no short or medium term threat.

“But what it means for banks is that their traditional role as main payment intermediary for funds and currency transmission will become challenged, if not obsolete.”

Whilst Cassar notes that cryptocurrencies can be risky due to their connection to money laundering and of course, their volatility, he still thinks that they are “here to stay”.

Malta has been renamed “The Blockchain Island” due to their welcoming government, their crypto friendly laws, and the set up of several large cryptocurrencies in the country. Exchanges such as Binance, BitBay and OKEx have all announced their intention to relocate to Malta and the government have just enforced three new bills designed to fully regulate the sector.

Just last week, Binance announced that they had managed to open a bank account on the island meaning they would be able to offer crypto to Euro exchange. Cassar commented that whilst it is an area of unknown and unprecedented risk for the banks, this doesn’t mean it isn’t possible.

“We need to be sure of what enhanced risk management and compliance capabilities the banks are putting in place because there are also other important linkages that need to be protected, among others our correspondent banking networks which still see these technologies as new and susceptible to risk of criminal abuse.”

If you would like to get further information on how to set up your ICO and are looking for ICO legal advice in Malta, please follow this link. E&S Group is here to help make your dream a reality!

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Companies can save stress by integrating Bitcoin Cash payments

Categories Blockchain, Cryptocurrency, Bank, Technology, Bitcoin

Companies can save stress by integrating Bitcoin Cash payments

The founder of Lokad, Joannes Vermorel addressed delegates at last month’s CoinGeek Conference in Hong Kong to talk about how Bitcoin Cash has the ability to solve several usability and experience flaws that plague the current banking system.

Vermorel stated that he believes that the current solutions that are offered by the banking systems are cumbersome and expensive. Those that are less costly, tend to be harder to integrate, he added. In addition to this, the regulations and protocol on chargebacks and other services mean that credit cards are actually a very convoluted and stressful part of operations. Bitcoin Cash, however, is not.

“With Bitcoin Cash…it’s just a protocol. It was designed for the Internet age from day one so it’s globally unified. It’s the same thing wherever—it doesn’t depend on the countries. There is nothing that is country-specific about Bitcoin. And that means that in terms of IT integration, it’s way superior.” He adds that it is “native to the Internet.”

“Integrating Bitcoin is just about dropping an open-source piece of software into your IT landscape if you’re a large e-commerce.”

For those that are not familiar with Vermorel’s company, Lokad is a development enterprise that uses big data and machine learning for supply chain disruption, as well as spearheading the Terab Project. The Terab Project is an initiative which works rigorously to bring terabyte blocks to Bitcoin Cash.

 

Interested in Learning More about ICOs Legislation in Malta? Contact us directly on +356 20103020 or by mail at [email protected] to find out more.

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Banks saw an increase in blockchain budgets during 2017

Categories Financial Services, Blockchain, Bank, Technology, Increase, Proof-of-Concept

Banks saw an increase in blockchain budgets during 2017

A recent survey has shown that the global financial services industry spent an impressive $1.7billion on blockchain development in 2017. An increase of 67% for individual blockchain budgets was registered as well during the same time frame.

This research was published by the US-based market intelligence firm Greenwich Associates and as well as the general increase, they noted an average spend of $10 million or more during 2017. The report also stated that 14% claimed to have already integrated and deployed a blockchain solution with 75% expected to move from proof-of-concept to live production over the next two years.

Richard Johnson, the author of the report and the VP of the firm’s market structure department stated that over 50% of the execs that were interviewed said that implementing the new technology was much harder than they expected. Over 200 institutions were interviewed, all of which said that the number of staff dedicated to blockchain within their institutions had doubled over the same time frame. This led to Greenwich Associated declaring that on average, a top-tier bank now has around 18 full-time blockchain focussed employees.

This report is indicative of the growth of investors that are being made by various financial institutions in terms of blockchain technology. A similar survey that was published in 2016 estimated that the total spending on such projects could reach over $1 billion in the near future.

 

To know more about ICO legislation in Malta please follow this link.

Contact us directly on +356 20103020 or by mail at [email protected] to find out more.

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Why you should open a company in Malta

Categories Residence, iGaming, Blockchain, Cryptocurrency, ICOs, Malta, Law, Bank, The Blockchain Island, E&S Group, Regulation

Why you should open a company in Malta

Choosing a jurisdiction to operate in, or a new location for a branch of your existing company can be a difficult prospect. Each country has its own pros and cons and knowing which one is best suited to your needs can be difficult to decipher.

The small island of Malta has long been a hub for iGaming, financial services, corporate services and fintech. Recently it is making a prominent name for itself in the field of cryptocurrencies and related industries. So why should you consider setting up base in Malta? What benefits does opening a company in this small, EU Member State afford?

Efficient registration procedure

The process of opening a company in Malta is relatively quick and efficient when compared to other EU jurisdictions. By enlisting the help of a specialist advisory such as E&S Group you can have a range of different company types or structures registered correctly and with minimal fuss. Directors and shareholders do not have to reside in Malta, the share capital totals EUR1164.69 with just 20% paid up upon incorporation, and as long as all documents are in order, the company can be registered within 2-3 working days.

Great fiscal incentives

Malta offers companies a highly efficient, EU compliant fiscal regime with an extensive double-taxation network. It provides a full imputation system for applicable entities, which allows shareholders to benefit from a refund of the tax paid by the company when distributions are made to them.

Tax benefits for Maltese holding companies

A Maltese holding company can be set up to hold securities, shares and business assets such as fixed assets, real estate, investment, bank accounts, aircraft, intellectual property, and yachts. The domestic tax treatment that is afforded to the income received by such companies as well as the countries participation exemption means that those choosing to set up a Malta holding company can enjoy attractive benefits as well as an excellent conduit to and from the EU.

A sound reputation

Malta has been a fully-fledged member of the EU since 2004 and since then, the country has cemented its reputation as a hub for business and new industries. In particular, it is renowned for its vast iGaming industry, its financial services industry, and now its burgeoning cryptocurrency sector. The country is home to international banks such as HSBC, BNF Bank, and Lombard, amongst others. Malta also transposed and enforced the EU’s Fourth Anti-Money Laundering Directive and its financial services sector is regulated by the Malta Financial Services Authority.

Solid infrastructure

You can fly to any EU city within three hours from Malta International Airport and Dubai is around five hours away. The countries employee pool is fluent in English, Maltese and often Italian with languages such as French and German being spoken widely. Malta enjoys fast fibre internet, a high standard of IT infrastructure, an experienced and highly educated professional workforce, and a full range of specialist ancillary service providers.

Good quality of life

Last but not least, Malta ranks as a country with the highest quality of life within the EU. The country enjoys over 3000 hours of sunshine every year along with long, hot summers, and short, mild winters. As far as recreation goes, Malta is rich in history, culture, heritage, and many opportunities to socialise and network. Professionally, the University of Malta lectures in English and many professional and internationally recognised courses can be taken locally.

 

E&S Group is a leading law firm offering various services with regards to ICOs. Feel free to contact us directly on +356 20103020 or by email at [email protected] to find out how E&S can help you in ‘making things happen’.

For more information click the link.

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Crypto-giants Binance opens a bank account in Malta

Categories Blockchain, Cryptocurrency, Malta, Law, Bank, The Blockchain Island, DLT Regulation, E&S Group, Cryptocurrency Exchange

Crypto-giants Binance opens a bank account in Malta

In May 2018, the world’s largest cryptocurrency exchange, Binance, announced that it would be opening offices in Malta. The reason for their move was due to tighter restrictions on cryptocurrency activity in Japan and the fact that the Maltese government was legislating in favour of the cryptocurrency industry.

 Crypto-Euro trading pairs

In an interview given last week, CEO of Binance, Changpeng Zhao announced that they had successfully opened a bank account in Malta to enable them to conduct business. This also coincided with the news that Binance would soon offer crypto-Euro trading pairs on their exchange. This news reinforces Malta’s position as a leading jurisdiction for cryptocurrency related businesses and it is expected that other service providers will soon follow suit.

Banks have been traditionally wary of businesses that are operating in the cryptocurrency sphere, so Binance’s latest achievement is a big success as well as a significant step forward. It is hoped that this recent development will mark the beginning of a period of understanding and mutually beneficial assistance between local banks and those wishing to engage in the cryptocurrency field.

The bank that Mr Zhao used to open the account and any details on the type of account opened have remained confidential at this stage. However, many believe that other Maltese banks will address their own policies in light of the news.

The Blockchain Island

Malta has been touted as the ‘blockchain island’ and as well as Binance. Other companies such as Okex, BitPay, and DQR have all announced their intentions to call the EU Member State home.

Whilst Malta has announced three new bills that will come into force in due course, setting up a cryptocurrency business on the island still requires a high level of sector and local know-how. At E&S, our team of legal experts, accountants, business consultant, and finance specialists- all with considerable experience in the field- are on hand to guide clients through the process from A-Z.

E&S offers a full portfolio of services such as company incorporation and formation, investment service licenses, company management, and of course, setting up the right bank for you and your businesses needs. We also offer advisory services to ICOs. To find out more, contact us at [email protected] or by calling us on +356 2010 3020.

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