Despite the turbulence that broke out in the crypto market this summer, there is an important long-term marker that should be considered in any comple
Despite the turbulence that broke out in the crypto market this summer, there is an important long-term marker that should be considered in any complex assessment — the combination of adoption and regulation. The latest report by EUBlockchain Observatory, named “EU Blockchain Ecosystem Developments,” tries to measure this combination within the European Union, combining the data on each and every member country from Portugal to Slovakia.
As the original report counts more than 200 pages, Cointelegraph prepared a summary with the intent to capture the most vital information about the state of crypto and blockchain in Europe. We started from a group of countries that are usually labeled as “Western European.”
Austria
Numbers: 50 blockchain solution providers, $48.72 million (50 million euros) in total funds raised
Regulation and legislation: A registry for Virtual Asset Service Providers (VASPs) was established by the Financial Market Authority a year later, in 2020. Regulators have adopted an “overall non-restrictive approach” toward crypto and blockchain and crypto mining remains largely unregulated.
Taxes: As is the case in most European countries, digital currency exchange is VAT-exempt. Capital gains from the sale of crypto are subject to a progressive income tax that amounts to up to 55% for individuals and 25% for corporations, but digital taxation policies may apply if the digital currency generates interest income and thus qualifies as an investment asset.
Notable initiatives: In November 2019, the Austrian Blockchain Centre (ABC) was created to explore blockchain applications in the fields of finance, energy, logistics, public administration and the Internet of Things. ABC, currently involving more than 21 institutions and 54 companies in its public-private partnership model, aspires to become the world’s largest blockchain research center. Blockchain is also a key facilitator of the Smart City Vienna and Open Government Data initiatives.
Local players: Bitpanda, a Vienna-based trading platform, which market value exceeded $4 billion in 2021, Blockpit, a digital assets investment platform responsible for more than $500 million traded in 2017, and Conda, a crowd-investing platform for Austrian startups.
Belgium
Numbers: 47 blockchain solution providers, 992 blockchain professionals.
Regulation and legislation: According to the report, there are currently “no specific laws or regulations” in Belgium. In 2017, Financial Services and Markets Authority (FSMA) published a communication on an overview of the legislation and regulations that may apply to Initial Coin Offerings (ICOs) and crypto assets.
At the same time, FSMA maintains a red list of fraudulent crypto companies. Nevertheless, utility token offerings are considered “a regular option” to raise capital. The FSMA characterizes crypto assets as investment instruments given that they may provide rights to revenues or returns, a means of storage and exchange given their convertibility into other assets or a utility token if they provide access to certain products or services.
From May 2022, registration for VASPs and custodial wallets is obligatory. The providers must fulfill certain conditions including status as a legal entity and maintaining minimum capital of 50,000 euros.
Taxes: Tax stands at 33% on any cryptocurrency income, depending on how the individual is investing. A mere increase of value over time escapes taxation, but the investor is obliged to prove their holding strategy. There is no specification on the required holding time.
Notable initiatives: “Blockchain for Europe” represents international blockchain industry players at the EU level, with a primary focus on participation in the regulatory debate. HIVE Blockchain Society is a nonprofit blockchain association whose aim is to promote the understanding of distributed ledger technology and to inform the Belgian and international community about its developments.
Local players: Keyrock, a company that develops crypto-asset financial infrastructure by means of scalable, self-adaptive algorithmic technologies, Credix, a decentralized credit marketplace powered by Solana blockchain technology, and Delta, a Bitcoin (BTC) and cryptocurrency portfolio tracker app.
France
Numbers: 160+ blockchain startups, $175.4 million (180 million euros) of fundraised revenue
Regulation and legislation: France established a friendly legal framework for ICOs in 2016, allowing issuers to register cash vouchers directly into the blockchain. In 2017, the Financial Market Authority (AMF) launched the digital-asset fundraising support and research program UNICORN. France also authorizes the registration and transfer of unlisted securities using blockchain technology.
Taxes: The country’s highest administrative court reduced the tax burden on profits coming from cryptocurrencies and set a flat rate tax of 30%.
Notable initiatives: The public Deposits and Consignments Fund makes direct…
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