A Bitcoin-centric start-up, Blockrise has obtained an operational license from the Dutch Authority for the Financial Markets (AFM). The firm announced the landmark development on Wednesday through an official blog.
According to Blockrise, the approval from the AFM is under the Markets in Crypto-Assets Regulation (MiCAR) framework. The new regulatory regime defines how crypto businesses should operate in Europe.
More so, with the license, Blockrise aims to offer regulated Bitcoin services in EU member states. Also, as indicated, the intends to offer Bitcoin custody solutions, trading, and asset management, throughout the region.
One eye-catching part of Blockrise’s offering is the exclusive Bitcoin loans for business clients. Despite the approval, the aforementioned offering is on the gray side of the MiCAR regulation as it doesn’t regulate crypto lending offerings.
Confirming the offering, Blockrise CEO, Jos Lazet stated that the company is offering business loans starting from $23,150 to corporate investors. According to the CEO, borrowers can collateralize their Bitcoin and open a loan against it.
The CEO responded that although Bitcoin loans are not under MiCA provisions at the moment, Lazet stressed that in the coming years, the framework will expand to cover the lapses. He argued that “MiCA is a requirement to provide Bitcoin-backed loans, such as the MiCA licenses to custody, transfer, and broker.”
Furthermore, he added that the interest rate for the loan is currently fixed at 8%, indicating that it will be revisited every month. Jos Lazet, while addressing concerns about its regulatory standing, said MiCA is the basis for Blockrise to provide Bitcoin-backed loans.
Side note
However, the latest move underlines how Blockrise aims to make a bold statement in Europe with its Bitcoin offerings. The initiative was launched at a time when Bitcoin was enduring a serious price correction.
According to CoinMarketcap, the price of the premier cryptocurrency has dipped by 24% in the last 30 days amidst a broader price correction that ravaged all crypto assets. Meanwhile, BTC is gradually rebounding, and green candles are showing once again on the price chart as the token is currently trading at $87,817.
Recall that Blockrise made its market debut in 2017 as a crypto asset management company that provides innovative semi-custodial wallet services. The company gained market attention for its wide range of vaults and Hardware security modules that provide water-tight Bitcoin wallets.
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