regulations must not degenerate into an orgy of bans – Interstars

The end of the financial market “Wild West”: This summer, EU representatives agreed on stricter conditions for crypto platforms. Many brokers and exchanges have mixed feelings about the amendment.

Cryptocurrencies have been around for over a decade. Despite this, institutions around the world are struggling to establish guidelines for cyber currencies. Ulli Spankowskii has deliberately subjected itself to strict regulations with its Bison crypto trading app. Bison is the first crypto trading platform backed by a traditional financial institution, Boerse Stuttgart. Almost 3 years after the app was launched, Spankowski tells futurezone in an interview why he chose a stock exchange as his partner, what he thinks of the new EU crypto regulations and how the market is doing. struggling industry.

futurezone: Why did you choose the stock exchange as a partner?
Ulli Spankowski:
Regulation creates trust. When I took my first steps into the crypto environment, I knew my money was going somewhere in Eastern Europe, to banks whose names I couldn’t even pronounce correctly. You only invest amounts of 20 or 30 euros. It’s different at a well-known institute like the Stuttgart Stock Exchange. I don’t feel like an institute with a 160-year tradition wants to do anything to attract negative attention.

They say your app inspires trust. Are there any advantages over other scholarships? In terms of presentation, the application is similar.
She is similar, yes. But I would say that investors on other exchanges are on average younger than ours. Our application is made quite young. The initial target group should be between 20 and 35 years old. In fact, the main target group is the 35 to 70 year olds and have huge investment portfolios. There are many platforms for people who want to invest 50 euros in crypto. But if I several thousand euros want to invest, so I think very carefully about which partner I want to do it with.

Ulli Spankowski founded the Bison app in 2019. It supports crypto regulations, a But he rejects the “orgy of prohibition”.

When a conventional financial service provider accesses new assets such as cryptocurrencies satisfied: What regulations did you have to comply with in order to be able to set up such an offer?
The complete set of regulations. The whole crypto industry is complete created in an unregulated manner. Just figuring out which terms and conditions apply to whom, how long it might take for crypto to go from A to B – we had to think through all those complexities. And that has nothing to do with regulations: But a classic financial service provider only knows the working hours from Monday to Friday, 8 a.m. to 10 p.m. We had to explain to the stock exchange that it would not work that way and that the project had to be launched 24/7. It was a huge discussion at first.

However, at the end of June, the EU agreed on “MiCA”, a regulation intended to regulate cryptography. What do you think of the new rules?
Overall it is to be commended. A good dose of regulation is the key to success. We also noticed this in 2020, when the crypto custody license was introduced in Germany. Traditional financial service providers aheadbarely discussed crypto said: Now the regulator gives us the framework conditions, now we can take a look. It is important that it does not degenerate into an orgy of prohibitions.

What would you say to hardcore “crypto heads” who think a set of rules goes against the anarchic essence of crypto?
Between 2016 and 2017, I was often at crypto conferences. There I was asked what was the biggest problem with Bitcoin. My answer: no one cares. It has simply been too complex for the mass market to invest in crypto. 99% of people are not afraid of their bank. They constantly consume their products. This is what crypto regulations are for, so that there is no excessive abuse.
This is no different in the field of defibrillators. Everything that happened with Terra/Luna was pure market manipulation. In classic financial cases, those responsible would be blamed. But no rule punishes him.

Crypto Asset Markets (MiCA) is it new set of cryptographic rules of the EU, on which parliamentarians and representatives of the Member States agreed in June 2022. New regulations force providers to meet stricter requirements to protect consumer wallets. Platforms can be held liable if they lose crypto-assets held by their investors. They must also inform the regulator of their ecological and climate footprint. MiCA is designed to make market manipulation such as insider trading and money laundering on crypto platforms more difficult. Stablecoin issuers are required to maintain fiat currency reserves for all issued assets. The Commission approved the MiCA proposal on September 24, 2020 submitted. The law is currently going through a formal acceptance process and needs to be passed end of 2023 come into force.

Challenge represented Deccentralized funding“. It is a collective term for financial services that are processed in a decentralized manner (i.e. without intermediaries or women). Unlike conventional financial services, DeFi transactions are blockchain-based and take place via so-called smart contracts. These are digital contracts that are executed automatically when certain conditions are met in a transaction.

Big banks are watching DeFi with eagle eyes so that no parallel financial market opens here. Could it be banned?
A ban would be nonsense. We already live most of our lives online. I believe DeFi is a meaningful societal extension that will come sooner or later. There are already final drafts that deal with compliance and regulations and say explicitly: we would like to offer these products under certain rules and not everyone can lend everything they want to everyone. I think that’s where it will go.

We are just above Earth/Moon speak. In view of the crash: do you think that altcoins have had their day? Is this an endorsement for bitcoin advocates?
No, I don’t believe in “Bitcoin only”. Bitcoin has its purpose, but a lot will happen with altcoins. Just think of the automotive industry: if I installed seat heating in my new car and only have to pay when I turn it on, something like that can be processed via blockchain. With pay-as-you-go, I have a lot of intermediary service providers in the value chain. In my opinion, profits can be made here by reducing the number of intermediaries, for example via smart contracts.

regulations must not degenerate into an orgy of bans –

The app was originally designed for a young target group. Now it attracts older investors with large portfolios.

Over the past few weeks, crypto exchanges have repeatedly gone bankrupt or had to lay off staff. Bison income also depends on trade volumes. How is your liquidity?
Our trading activity is similar to other exchanges. It’s less busy now. What is perhaps a little different from our competitors: we continue to recruit personnel in a targeted manner. However, we have never had exorbitant positions on the marketing side either.

If you take a look in the crystal ball: what will regulations look like in 5 years?
In the EU, there was an understanding that crypto and blockchain technologies should not be regulated to the death. If there is no 2008 in the crypto financial market, we will have innovative regulation. At least that’s my hope.

You can read more news about Bitcoin and other cryptocurrencies on our crypto channel futurezone.at/crypto.

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regulations must not degenerate into an orgy of bans – Interstars


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