Tag: European Union

Europe as a Global Digital Player

Objectives of the EU´s digital finance strategy

The EU is Tackling fragmentation in the Digital Single Market. Adjustments are needed to ensure the legal framework and interoperability of digital identity solutions. The EU regulatory framework shall facilitate digital innovation in the interest of consumers and market efficiency. Given developments in technology, the Commission has taken a pro-active approach and proposed adjustments to the EU’s financial services legislation and supervisory practices to ensure that they remain relevant in the digital age. Creating a European financial data space to promote data-driven innovation, building on the European Data Strategy. Enhanced access to data and data sharing within the financial sector will encourage the financial industry to embrace data-driven innovation and lead to more innovative products for consumers and businesses.

Compliance with data protection rules, in particular, the General Data Protection Regulation, is a pre-requisite for a global player and a financial sector driven by data. The principle of the digital finance package is  Same Risks – Same Rules – Same Regulation!

Crypto exchanges and custodial wallet providers must have a physical presence in the EU and become subject to prior authorization from a competent national authority before starting their activities. They will be subject to capital requirements, governance standards, and an obligation to segregate their clients’ assets from their assets. These crypto-asset service providers will also be subject to IT requirements to avoid the risks of cyber thefts and hacks. Supervision will, in principle, fall upon the authorities of the Member State where providers are based. If the control is divided between several competent authorities because activities are cross-border, it will be up to the Member States to designate a single point of contact. European Banking Authority will supervise asset-referenced tokens because these instruments are likely to pose significant risks for financial stability and consumer protection in multiple member states.

Local law itself is never a problem, as long as it offers international parties the opportunity to join the local market under level playing-field conditions – meaning a situation in which everyone has the same advantages and disadvantages. A level playing field is vital for Europe in the global environment of “America First” and China’s unstoppable rise.   

Crypto-assets and their underlying technology present considerable opportunities but are also associated with significant risks, stemming mainly from the fact that most of them have remained so far unregulated, which exposed digital businesses to scammers and hackers. A digital euro could evolve as a safe form of money and avoid possible undesirable implications for fulfilling its mandate for the financial industry and the broader economy.

The EU´s initiative creates opportunity in the EU Market, something we (Axel Hoehnke) were looking for when working with global adtech leaders like Smaato. Have a look at our Strategy Consulting Services and our seamless onboarding process.  

C84.io - Why the Digital Euro is a Milestone for Europe as a Global Player

🇪🇪 Why I have joined Startup Nation eEstonia in 2017

What Makes Estonia Different?

The former Soviet republics Estonia, Latvia, and Lithuania have turned themselves into some of the most tech-savvy, digitally focused governments in Europe. They address the market opportunity of the European digital single market. 2018, Estonia is regarded as one of the world’s most advanced digital nation. Anybody who wishes to start a business in Estonia can become an eResident and get a so-called e-residency to access all electronic services offered by the government. E-residency provides the possibility to establish a company online, manage it remotely and achieve location independence. 

The Republic of Estonia is the first country to offer e-Residency — a transnational digital identity available to anyone in the world interested in administering a location-independent business online. e-Residency additionally enables secure and convenient digital services that facilitate credibility and trust online.

The E-Residency program saves time you would otherwise have spent on bureaucracy, tax authorities, and incorporation. Although there are obvious benefits to incorporating your cryptocurrency business in Estonia, it is important to consider the legal and compliance obligations. Incorporating your business is a major decision which should be well planned and for which advice should be sought from professionals. Estonia shows what e-societies of the future will look like, and how entrepreneurs in other countries can capitalize and learn from, especially educational tech Infrastructure. and Cybersecurity. 

  • Online Government: Estonian citizens do most of their necessary business with their government over the internet. I can use my electronic ID card to access the government’s e-services, which include paying taxes, registering a business and even paying for parking.
  • According to the Estonian government’s website, “where the business is easy, the business will grow.
  • In August 2020, Estonia announced a world-first Digital Nomad Visa for remote workers. The visa allows eligible location-independent workers to live in the country for up to a year while they work online.
  • One hundred percent of Estonian schools were using e-schooling solutions long before the coronavirus forced every student and teacher on the planet to adapt to remote learning.
  • There have been computers in every classroom in Estonia since 2000, and as early as 2015 the Estonian government pledged to digitize all educational materials. The country made its ed-tech solutions for distance learning available to all countries for free.

I have been working with global tech clients for 20 years and finally became an eResident in Estonia to join the Baltic digital pioneers, and thousands of digital nomads from all around the world. Considering the eResident movement as a milestone in our journey to decentralized organizations, often considered as the superior organization model.

As an eResident, I can start a location-independent EU company remotely, run it online from anywhere, as well as access all the tools needed to easily conduct business globally. It includes a legal address for our Estonian company and accounting services. We now can start and scale new organizations faster and easily go to market in the European Union with a connected service under one European wide digital legal framework. 

You are welcome to try it and connect with me. Here is the link to my onboarding process. 

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