Hubert Rachwalski von Rejchwald

Starting next week, the EU crypto industry moves into a new era with the implementation of the Markets in Crypto Assets (MiCA) framework. This is a landmark regulatory framework and the first structured set of rules in our industry. MiCA's partial activation, mainly focusing on activities related to stablecoin, will introduce both challenges and opportunities at the same time. While the framework is clearly aimed at creating more transparency and security, the strict compliance requirements could momentarily affect liquidity and trading access, possibly forcing some businesses to reconsider their operations in the EU. A few interesting points: There are stiff conditions placed upon stablecoins involving an “electronic money license” and a 200 million euro trading volume cap. Exchanges such as Bitstamp already announced they will delist Tether’s EURT and other stablecoins that do not comply with MiCA.  There is also still some uncertainty around Virtual-Asset Service Providers (VASPs) and the classification of Electronic Money Tokens (EMTs). Companies will have until the end of the year to be fully compliant with MiCA and, even though I expect this regulatory framework to be a net positive for the industry, I suspect it may still be a bumpy ride. Do you have more updates on MiCA? Please share them in the comments - I’d love to hear more about this!

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THE DANGER OF CASHLESS / DIGITAL SOCIETY Cyber security attacks and hack crimes are indeed on the rise. Here's a breakdown of the situation: Increased Reliance on Technology: Our growing dependence on digital systems and the internet for everything from communication to financial transactions creates more attack surfaces for criminals. Rise of Sophisticated Techniques: Cybercriminals are constantly developing new methods to exploit vulnerabilities in software and systems. Profit Motive: The potential financial gain from cybercrime is significant, attracting more individuals and organized groups to this illegal activity.

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  A Significant Milestone with the Implementation of MiCA in the EU!   📌 The first parts of the Markets in Crypto-Asset Regulation (MiCA) take effect in the EU on June 30, 2024. This initial phase primarily impacts issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs). The remaining provisions, including authorization and operating conditions for crypto-asset service providers, will be enforced from December 30, 2024.   🤔 MiCA sets out to regulate the issuance of ARTs and EMTs, including the mandatory production of comprehensive whitepapers for these assets. One notable aspect of MiCA is the limitation on other currency stablecoins like USDT and USDC. Some exchanges have already started to delist these coins. Given the current high volumes of these stablecoins compared to EUR stablecoins, we might see some volume shift to EUR. However, I believe that while this shift may occur to some extent, we won't see a significant rise in EUR stablecoin volumes in the near term.   🚀 Overall, MiCA is a good first step towards a more regulated and transparent crypto market in the EU.   #MiCA #CryptoRegulation #Stablecoins #Blockchain #CryptoAssets #Finance #EU

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Zkasino Case: How to Avoid Scam Projects 🚨 The Zkasino case caused quite a stir in April, becoming one of the biggest rug pulls of the year so far. $32 million of users’ funds were transferred to unknown wallets, and the team ceased online communications. 📉 The project, which appeared trustworthy and promising, turned out to be a fraud. However, scams are rampant in the market. One question remains: WHY did big funds, including MEXC and Big Brain Holdings, invest in ZKasino? Funds are aware of the risks, especially in early stages, but the main concern is how to avoid investing in scam products. I’ve gathered major criteria that became crucial for funds before investing in the project. This can become useful for you before investing in startups. WHY DID FUNDS BELIEVE IN ZKASINO? 1. Hype: The Web3 community was talking a lot about ZKasino. Betting, inherently risky, seemed more reliable connected to Layer-2 ZK Rollups. This was a key factor for many funds. However, Vitalik Buterin criticized the project, noting that it had no real connection to zkSync other than being hosted on the platform. 🎰 2. Clear Deadlines: Setting clear deadlines and a roadmap often signals reliability to investors. ZKasino had these from the start. 🛣️ 3. Speed: The Series A round closed very quickly, giving investors little time to deliberate. The mantra seemed to be, invest quickly and avoid regrets. ZKasino’s Series A valued them at $350 million! ⏱️ 4. Solid BizDev Team: ZKasino had a highly skilled business development team. Their professionalism varied based on the level of the fund they dealt with. While interactions with top-tier investors like MEXC were polished, smaller funds experienced less respect as the round neared its end. 👔 5. Huge User Base: By March 2024, ZKasino had over 35,000 active users. Its Layer-2 technology required no KYC, and its strong marketing (featuring regular lotteries and bonuses) along with a user-friendly site attracted many gamblers. 🌐 These are just five major reasons. Always remember to think twice and conduct thorough DYOR before investing. As we can see, large investors are not always a reliable indicator of a project’s promise. If you have more insights on how the ZKasino team managed to attract investment, share them in the comments below! ✍️ #Zkasino #scam #web3 #fundraising 

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Take-Two Interactive Marketcap is bigger by 8B of the whole #Crypto #Gaming sector. I find this hilarious now, because even by doing criminalistic activities to the 2K Customers recently, they can still be valued at 27Bs. Meanwhile the #Crypto Games are all pyramid schemes too, and the whole marketcap is compiled up is 19.2B. Its too niche…..dont become bag holders playing bad games, even though they went 20X+ in returns for some of them.

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Circle, the issuer of USDC, became 1st global stablecoin issuer to offer “euro EURC stablecoin” and “USDC” in EU in compliance with Markets in Crypto Assets (MiCA) regulations! Circle seems to have secured an Electronic Money Institution (EMI) license in EU, which is a prerequisite to offering such stablecoins in EU, per a CoinDesk report. The license allows the company to issue the MiCA-compliant stablecoins in EU. Other key stablecoins issuers are anticipated to follow to apply for the stablecoin licenses in EU. Circle may have become the 1st global stablecoin issuer which is issuing “licensed” stablecoins in a key economy. Some other jurisdictions are still in the process of forming stablecoin licensing regimes or other regulatory frameworks to govern stablecoins, which include US and Hong Kong. Does Circle’s licensed stablecoin issuance symbolize the dawn of the new licensing or regulatory regime of stablecoins throughout the world? Read on more information on the licensed stablecoin in the report! #stablecoin #coin #crypto #MiCA #cryptoregulations #digitalassets #virtualassets (Any contents shared are only for information sharing purposes and are not any investment or legal advice or do not intend to support any product, price, company, platform, information, opinion, etc.)

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🚀 DTCP Closes $450M Fund for Series B to D Investments in Digitization and Automation🚀 DTCP, an independent investment management firm spun from Deutsche Telekom, has successfully closed its DTCP Growth Equity III Fund, raising a remarkable $450 million! This includes an initial closing of an additional B2B early-stage investment fund. 🌟 Despite a challenging market environment, DTCP's robust proprietary data-driven investment strategy has attracted capital from new and existing institutional investors, pension funds, corporations, and family offices. Deutsche Telekom served as the anchor investor, underscoring the firm's compelling value proposition. 💡 Revolutionizing Investment with DTCP Flightpath 💡 DTCP leverages DTCP Flightpath, a cutting-edge data-driven software that analyzes the financial data of SaaS companies and benchmarks them against peers. This tool provides a unique KPI fingerprint for each firm, offering founders and CEOs invaluable insights into the vitality and future paths of their businesses. Thomas Preuss, Managing Partner at DTCP Growth, emphasized, "The successful closing of GE III is a resounding affirmation of our established and proven data-driven and value-additive investment approach. At DTCP Growth, our role extends beyond mere investment; we are allies and advocates for talented enterprise SaaS teams." 🌍 Strategic Investments in AI and Automation 🌍 The fund has already made four strategic investments in leading AI and automation companies: - Cognigy.AI: A global leader in AI-driven customer experience solutions. - Cohere: A leading platform for Generative AI for businesses. - Quantum-Systems: Specialists in advanced AI multi-sensor unmanned aerial systems. - anecdotes: Leaders in governance, risk management, and compliance solutions. These investments align with DTCP Growth's proven expertise and focus on AI and automation. 💼 Targeting High-Growth Investments💼 The fund aims to make 15 to 20 equity investments, each ranging from $20 to $25 million, targeting early growth or growth-stage businesses typically in Series B to D or late-stage funding rounds. DTCP's predecessor funds, GE I and GE II, have invested approximately $408 million into 33 enterprise software companies across Europe, Israel, the US, and Asia, with 14 companies either acquired or going public, realizing high multiples and returning over 100% of the capital to LPs. ✅ Looking to raise capital for your #VCfund and increase the international pool of your LPs?   🤝 Need warm #LP introductions?   📝 Selling #secondaries to increase liquidity?   🧐 Looking for co-investments (Series A/Series B)?   ▶ G+QUANT's link for inquiries and fund decks: https://lnkd.in/gjC_EuTE #InvestmentOpportunity #TechInnovation #VentureCapital #DTCP #Fundraising #AI #Automation #SaaS #GrowthEquity #EnterpriseSoftware #Digitization #B2B #SeriesBtoD #FutureOfTech #TechInvestors

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So, MiCA Laws, Are Coming Into Effect, In Europe! Here’s What, We Need To Know... 🇪🇺 🇪🇺 The EU’s MiCA Regulations will introduce new rules for crypto, affecting stablecoins and crypto asset service providers. The crypto landscape within the EU is poised for a major shakeup, as the first set of regulations under MiCA, are about to take effect. But, implementation of MiCA is expected to take place gradually. Regulations concerning stablecoins are anticipated to come into effect on June 30th. In December, regulations impacting crypto asset service providers will be introduced. #OverallShortTermEffects! While government regulation, will entail a little extra red tape around a given industry, it also brings with it a level of legitimacy. This is true for crypto, which has been widely scrutinized for its volatility and speculative nature. Reinis Znotiņš, MD of the LBA, argued, one of the first effects we will see after the introduction of MiCA will be “psychological...there are no longer speculations about the legitimacy of crypto business in the EU...these doubts are disappearing, as the EU Parliament, has said crypto related businesses are legitimate. #ByeByeStablecoins! Now crypto exchanges may delist certain non-compliant stablecoins or restrict services for EU / EC Area (EEA) based users. Many crypto exchanges operating within the EU have begun to do this. Exchanges, Uphold, Binance, Kraken and OKX have also started to delist stablecoins such as Tether. Bitstamp will delist Euro Tether. Egilsson argued, it's possible to see these non-compliant stablecoin issuers potentially exit the EU market entirely, with a potential shift toward Euro-backed stablecoins as demand picks up in EU markets #EUCryptoBusinesses! The major concern for crypto firms in the EU will be staying informed about regulations and changes, like those previously mentioned. Egilsson argued, the focus will be on securing proper authorization. This involves meeting strict organizational, governance and capital requirements, ie, maintaining adequate and high-quality reserves to support their value. Chaput argued some businesses may attempt “regulatory arbitrage” by relocating or leveraging reverse solicitation principles. That, this new landscape could “open doors” for established financial institutions to enter the stablecoin market. #UsersThisIsForYou! EU crypto users may be starting to question their own role too, and, they should prepare for a changing ecosystem. With less access to certain assets but greater transparency about how these tokens operate. Users will benefit from enhanced consumer protection measures, like guaranteed redemption rights for EMT holder. The increased regulatory oversight aims to provide a safer environment for investors. It's also possible to see some users tempted to trade on non-EU exchanges for access to a broader range of tokens this may expose them, to less regulated environments with fewer protections. #MICACRYPTOandEUROPE... 🤷 🤷

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EU PARLIAMENT ADOPTS AML LAWS REGULATING BITCOIN BASED ON QUESTIONABLE ASSUMPTIONS This event marked a significant achievement in establishing stricter guidelines and protocols for Crypto Transactions. The European Union's main goal is to guarantee that Crypto companies take appropriate actions and demonstrate the highest level of caution in adhering to KYC regulations. This is crucial in order to combat money laundering across all transactions. Shortly, I anticipate the emergence of Cashless Crypto ATMs that will provide customers with a wider range of services and reduced fees. KYC compliance process Develop customer identification processes. Identify individual customers through their official identity documents. Verify corporate entities through corporation documents along with verification of beneficial owners. Maintain risk profiles of customers. Take AML compliance measures if required. Read the Story, what do you Think? EU PARLIAMENT ADOPTS AML LAWS REGULATING BITCOIN BASED ON QUESTIONABLE ASSUMPTIONS On Wednesday, April 24th , the European Parliament adopted a new AML package increasing crypto asset service providers’ reporting requirements for anonymous payments. But it appears that the package’s crypto laws are largely based on assumptions, not facts. https://lnkd.in/ddGcc2Dm

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🌐 Big updates in the crypto world! 🌐 As of July 1st, MiCA is active for stablecoins, and Circle is already on board. Both Circle's USDC and EURC, along with Societe Generale - Forge’s EURCV, have met the MiCA standards right out of the gate. They've secured an Electronic Money Institution (EMI) license from France’s financial authority, the Autorité de Contrôle Prudentiel et de Résolution (ACPR). This makes them some of the first in the European stablecoin market to comply with these regulations. 🔗 What This Means? By aligning with MiCA's regulations, Circle offers a dependable and compliant option for EU users and businesses. 💬 Circle's New Capabilities With its EMI license, Circle Mint France is now up and running, giving business customers efficient services for minting and redeeming USDC and EURC. 🇪🇺 Looking Ahead This move is a big step for integrating digital assets into everyday finance. It opens the path for more secure and transparent financial services and could reshape digital commerce in the EU. What's your take? Will Circle's compliance with MiCA influence stablecoin adoption in Europe?

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Stablecoin regulations became effective in EU!  On June 30! The EU’s Markets in Crypto-Assets (MiCA) regulations came into partial effect, with new stablecoins rules coming into force on “June 30”, per a Cointelegraph report. A few key noteworthy points in the report: - Crypto exchanges may need to delist certain noncompliant stablecoins or restrict services for EU based users. - Many crypto exchanges operating within the EU have already taken action ahead of the new rules entering into force. EU has become, maybe, the first key economy in the world which has launched stablecoins’ regulatory regime. Given its size and influence in the global financial and asset management markets, other countries are anticipated to follow EU’s lead on regulating the stablecoins. Certain jurisdictions such as US and Hong Kong are already, reportedly, in the process of putting regulatory regimes. Big changes in stablecoin space may be coming from non-regulated environments to regulated markets!   Read on more information on EU’s stablecoin rules in the report! #MiCA #stablecoins #coins #cryptoregulations #crypto #digitalassets #virtualassets (Any contents shared are only for information sharing purposes and are not any investment or legal advice or do not intend to support any product, price, company, platform, information, opinion, etc.)  

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Yesterday, the EU’s Markets in Crypto-assets Regulation (#MiCA) officially came into effect for stablecoins. What can the crypto industry expect as MiCA implementation rolls out over the next two years? 🇪🇺 1️⃣ Staggered timelines and transition periods for crypto-asset service providers (CASPs) across the EU. Jurisdictions like Spain, Germany and Ireland have opted for ESMA’s recommended 12-month transitional period. On the other hand, Lithuania has granted its existing register of VASPs only 5 months to be MiCA compliant after the 30 December 2024 deadline. 2️⃣ Challenges with regulator readiness. Regulators are facing an adjustment period to up-skill their staff to process MiCA applications, and some may require substantial training efforts to understand crypto products and business models. 3️⃣ MiCA is just the beginning. CASPs will need to navigate a complex regulatory framework, including anti-money laundering laws (#AML), the Digital Operational Resilience Act (#DORA), the Electronic Money Directive (#EMD), the Transfer of Funds Regulation (#ToFR) and more. 4️⃣ It’s likely that the issuance of certain crypto-asset products and services will not be regulated under MiCA and instead under the EU’s financial services directive, MiFID II. Because MiFID II is a directive and not a regulation, it is not directly applicable throughout the EU and this leaves room for different applications by different EU countries. More on that in XReg’s explainer on the ESMA's proposed standard for classification: https://bit.ly/3SEUgw6 Despite these challenges, in the long-term, MiCA will foster greater trust from retail clients in crypto and facilitate streamlined, cross-border operations within the EU for crypto businesses. I recently had the opportunity to write my insights on the topic of crypto after MiCA with crypto.news. In my article, I discuss further what we can anticipate as MiCA comes into effect: https://bit.ly/3zyiHoO

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I have been studying about cyrptocurrency CEX (Centralized Exchange) over the last few days. I would like to share some of my research knowledge to the ones who are still at the beginning stage of their crypto journey, or would like to know more about crypto in general :) What is CEX? CEX refers to a type of cryptocurrency exchange that operates on a centralized platform, where a central authority or company facilitates the trading of digital assets. CEXs typically offer a user-friendly interface, higher liquidity, and a wide range of supported cryptocurrencies and trading pairs. However, they also introduce counterparty risk, as users must trust the exchange to hold and secure their funds. Challenges with CEX: -Regulatory Compliance -Decentralized Exchange (DEX) Competition -Security Concerns -Market Volatility -User Trust Outlook on CEX: CEXs must balance innovation with regulatory compliance and security to navigate the evolving crypto landscape. To stay competitive, CEXs need to adapt to technological trends, address emerging challenges, and differentiate themselves from decentralized competitors. This could involve offering new services, improving user experiences, and building partnerships with traditional financial institutions. #Cryptocurrency #Blockchain #CEX #DEX #Finance

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