Blockrise Obtains MiCA License for Regulated European Bitcoin Services

Blockrise, a Netherlands-based startup exclusively focused on Bitcoin, has announced the receipt of a significant regulatory license from the Dutch Authority for the Financial Markets (AFM). This license, granted under the Europe-wide Markets in Crypto-Assets Regulation (MiCA) framework, paves the way for a full suite of regulated Bitcoin financial services across the continent.

Scope of Blockrise's MiCA License

The MiCA license allows Blockrise to provide diverse Bitcoin services, including secure custody solutions, facilitating Bitcoin trading, and offering asset management services. Furthermore, Blockrise is introducing a novel service that allows its corporate clients to obtain Bitcoin-backed loans, an innovative offering even though MiCA currently doesn't directly regulate cryptocurrency lending services.

Bitcoin-Backed Loans for Businesses

Blockrise CEO Jos Lazet confirmed that MiCA forms the legal basis for offering Bitcoin-backed loans, with a specific focus on corporate clients to ensure compliance with regulatory constraints. These loans start at 20,000 euros (approximately $23,150). Clients can use their Bitcoin holdings as collateral for the loans, with the current interest rate of 8% subject to monthly review.

Future Expansion of MiCA's Scope

MiCA is expected to be fully implemented in late 2024, and will regulate the issuance and trading of cryptocurrencies. However, it's important to note that MiCA does not currently cover many other services and areas within the cryptocurrency industry, such as lending, decentralized finance (DeFi), mining, and payments. Lazet expressed optimism about MiCA's potential to expand in the coming years, predicting that its scope will eventually encompass more areas of the cryptocurrency industry.

Blockrise's Unique Semi-Custodial Wallet Structure

Operating as a crypto asset management firm since 2017, Blockrise features a "semi-custodial" wallet structure. Unlike traditional self-custody wallets, where users can recover their assets using a private key, Blockrise clients utilize a digital Blockrise key. This key has no value other than accessing Bitcoin within the Blockrise platform. Blockrise utilizes hardware security modules to securely generate Bitcoin wallets, ensuring that the keys cannot be extracted from the vaults. Completing a transaction requires a signature from both the Blockrise user and Blockrise itself. Because Blockrise doesn't directly custody user funds in the traditional sense, measuring assets under management is challenging. However, the company currently oversees approximately 100 million euros ($116 million) in client assets.

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