Key Takeaways
- Dutch firm Blockrise has obtained a pivotal Markets in Crypto-Assets Regulation (MiCA) license from the Authority for the Financial Markets (AFM).
- The license enables EU-wide regulated Bitcoin custody, trading, and asset management.
- Blockrise is immediately launching Bitcoin-backed business loans, starting from €20,000.
Table of Contents
The First Regulatory Milestone in Europe for Bitcoin
The Dutch bitcoin-only platform, Blockrise, has received an official MiCA license from the Netherlands’ Authority for the Financial Markets, taking a huge step forward in the regulation of cryptocurrencies.
The asset management specialist firm has now received a MiCA license under the Markets in Crypto-Assets Regulation (MiCA), which enables it to provide its services in all 27 European Union (EU) member states using a passported license.
Company’s MiCA license marks a major milestone in the development of Bitcoin-based financial services, providing institutional investors with a transparent and regulated pathway to access the dominant crypto.
Read also: MSCI Decision Sparks Bitcoin Backlash and JP Morgan Boycott
Capitalising on Bitcoin’s Financial Usefulness
As a result of its new regulatory status, the firm is launching its latest service: bitcoin-backed loans to corporate customers. The new loan product targets the increasing demand from corporations that want liquidity but do not want to sell their bitcoin.
The minimum loan amount is €20,000 with an initial interest rate of 8%. This allows companies to use their bitcoins as collateral while still retaining full ownership, thereby eliminating the risk of rehypothecating an asset.
The launch of this product, made possible under the MiCA license, shows how comprehensive regulation can facilitate the development of new innovative financial applications for digital assets.
Read also: Americans to Pay Taxes in Bitcoin Under New Congressional Proposal
Developing a Framework for a Regulated Bitcoin Economy
The MiCA license is an important accomplishment for Blockrise. It represents a crucial message for the entire financial services industry, also demonstrating that the Bitcoin Business Model is economically sustainable in Europe within the existing regulatory environment.
Blockrise will use the success of its MiCA license to attract €15 million in Series A funding, facilitating its expansion across Europe. The firm’s continued growth and success will help push an environment where Bitcoin can exist alongside the Traditional Finance System and gain legitimacy and consumer protection through regulation.
FAQs
What is the importance of the MiCA license for Blockrise’s business operations?
The MiCA license permits Blockrise to offer regulated Bitcoin custody, trading, and asset management services across the entire European Union(EU) under a single authorization.
How do the Bitcoin-backed loans work?
Businesses can obtain cash by securing their loans with Bitcoin as collateral. The company continues to own the Bitcoin, which is not lent out, and can use the loan amount(s) beginning at €20,000.
What is Blockrise’s “Bitcoin-only” strategy?
Unlike multi-asset exchanges, Blockrise exclusively deals with Bitcoin, citing its market dominance, lower volatility, and the simplicity it offers for clients and regulatory compliance.
For more compliance-related stories, read: Compliance for Telegram Wallet & its +100M Users Get Major Boost Through Elliptic Partnership
