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German Financial Powerhouse Boerse Stuttgart Group to Launch a Fully-Insured Crypto Staking Service

Germany takes the lead in crypto: Boerse Stuttgart to launch an exclusive staking service

 Germany is rightfully considered a European economic behemoth, and its rapidly maturing regulatory framework for crypto businesses underscores its desire to extend its influence to the crypto sphere. When it comes to the business of finance, there are only a handful of firms bigger than Boerse Stuttgart Group, the whale of the German stock market. 

The second-largest stock exchange in Germany, known as the Stuttgart Stock Exchange, and the ninth-largest in Europe, is actively expanding into the cryptocurrency sector through Boerse Stuttgart Digital, a crypto-focused unit that obtained a crypto custody license from the Federal Financial Supervisory Authority (BaFin) earlier this year via its subsidiary Blocknox GmbH. This division operates a proprietary cryptocurrency exchange BSDEX that was approved by the regulators in 2019.  

Getting a cryptocurrency license in Germany isn't an easy thing since the applicant has to meet a lot of specific requirements like demonstrating financial stability (not a problem for Boerse, obviously, and implementing anti-money laundering (AML) along with counter-terrorist financing (CTF) measures. With all the legal matters in order, and the exchange running smoothly like a well-oiled machine, Boerse Stuttgart Digital announced the definitive plans to launch a fully insured crypto staking service in the first quarter of 2024.   

Institutional crypto staking in Germany is gaining traction 

In the company's announcement regarding the upcoming staking service, its Managing Director, Dr. Oliver Vins, confirmed that institutional investors have shown a keen interest in such a staking service. This interest stems from Boerse's assurance of complete security for their crypto funds and the relief it offers from the need to delve into the technical intricacies of this complex process. 

 During the work on said project, the subsidiary of the German stock market giant partnered with Munich Re, a highly-regarded provider of insurance services that specializes in curbing the risks related to the so-called 'slashing" in PoS blockchains. "Validator 'slashing' refers to penalties imposed on network participants who breach rules or engage in malicious activities, often resulting in the suspension or forfeiture of their staked tokens. These penalties can range from freezing to outright confiscation of staked tokens. By promising full insurance against network sanctions, Boerse Stuttgart Digital aims to attract even more institutional investors with substantial capital. 

 Meanwhile, U.S.-based crypto players such as Coinbase and Kraken have dabbled in offering staking services to retail and institutional investors. However, their efforts were met with severe opposition from the US Securities and Exchange Commission (SEC) which pressed charges against both crypto entities for not registering these offerings as securities products. Unlike these U.S. exchanges, CryptoStake offers a fully secured crypto staking service, ensuring that investors can participate in staking without worrying about security risks and regulatory scrutiny.