Wednesday, 03 March, 2021

Crypto industry growing in Europe


EU Blockchain Report: Crypto industry growing in Europe

In the foreground you can see three golden Bitcoin coins. In the background is the flag of the European Union.

In November, the EU’s Block Chain Observatory published its first report providing an up-to-date overview of block chain developments within the EU. The UK and Switzerland were also examined.

The EU Monitoring Centre for Blockchain recently published its first report on the development situation of the member states in the crypto sector. The European Union initiative first examined factors such as the number of crypto companies in the member state, community activities, the degree of adoption or the acceptance of Bitcoin Loophole crypto currencies as a means of payment. Legal regulations that have already been enacted or are planned were also included in the evaluation.

Blockchain economy growing in Europe

In order to avoid the rude awakening in 2021 when the tax return is filed, it is important to realise losses, secure liquidity, control tax liabilities preventively and take a scrutinising look at the portfolio.

The 192-page report concludes that the block-chain economy is growing rapidly. This progress is being driven on the one hand by „bottom-up“ developments from industry, universities and the community, and on the other hand by „top-down“ initiatives from the governments of the member states and the EU Commission.

Regulatory classification

After an overview of the conditions in the individual countries, the authors defined two dimensions, each with three graded classes, into which the countries studied were later classified according to certain criteria. A distinction was made between the degree of regulation and the degree of development of the national block chain ecosystem.

In terms of the degree of regulation, the first level was assigned to countries that had no or hardly any specific laws on crypto-assets and only issued safety instructions for the purpose of investor protection.

Countries that have already adopted first existing regulatory schemes, such as KYC and AML schemes, have been assigned to the second tier. Government studies, pilot projects or an established framework for the taxation of digital currency or assets also fell into this category.

The largest class includes countries whose governments have already enacted specific laws on crypto-assets and/or have presented a future strategy. In addition, nations that particularly promote technological innovation and involve the banking sector in the overall process were also included.