When we talk about digitalization, the Blockchain brings us to a whole new level. The so-called distributed-ledger-technology (DLT) does away with the previous thinking of intermediaries and closed systems. But companies still struggle to adopt the new technology and harvest its success. Luckily, Europe and especially Malta are at the forefront of this Development.
The European Union (EU) is one of the most economically powerful areas in this world. And the EU is on the way to becoming the world’s leading region in the sphere of blockchain adoption. If you take a closer look at other countries or regions (i.e. US or China) the EU has a very positive view on Technology and actively supports it. Last year the European Union launched the EU Blockchain Observatory to provide a Forum for exchange and discussion between experts. This lies the groundwork for further regulation and adoption of the blockchain technology.
Unclear regulations, according to a study, are still the largest obstacle for companies to adopt blockchain. Luckily, the EU is one step ahead to fill the gap. One big advantage is already the “passporting rules” within the European Union. This means, if one company adheres to the local regulations, these are usually valid and suffice for all other member states of the EU. This means, companies don’t have to struggle with the regulation in every member state but can focus on their home country and can apply the same regulation in all member states.
Security Token Offering (STO)
EdeXa is one of the first companies in Europe that has used this approach. The Blockchain start-up has used a Security Token Sale to finance its investment. The company adheres to the very crypto friendly regulation in Liechtenstein (like Malta) and at the same time can sell the Tokens across the whole of Europe. This passporting right is a big advantage for all member states in Europe and comes in handy regarding crypto regulation.
Furthermore, Europe offers a very talented pool of Blockchain Developers and a broad Community as seen by the regular crypto conferences: For example, the upcoming Malta Blockchain Summit in May. According to a study by Outlier Venture actually 25% of the blockchain start-ups worldwide reside in the European Union. Also from Europe comes the first university to offer a Cryptocurrency Course. The University of Nicosia in Cyprus was the first to accept the tuition fees in Bitcoin and to obtain academic certificates in the blockchain. These points underline why the EU is such a big market for Blockchain Application.
As edeXa has shown, the new Technology has the potential to create completely new innovation. A Security Token offering is very much like an IPOs of traditional companies but in a very innovative and digital way. It is an IPO on the Blockchain. An STO is considerably cheaper and attainable even for small and medium enterprises - the backbone of the European economy. The Blockchain offers them a completely new way of fundraising. This is important since the ongoing digitalization and robotic will need ever growing budgets for research and development.