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Allianz Advances with Blockchain-Based Token System

As the growing adoption of blockchain technology approaches the mainstream enterprises, the insurance giant, Allianz has also entered the blockchain sector. Allianz Global Corporate & Specialty SE (AGCS) has progressively been developing a token-based ecosystem utilizing blockchain technology.

Currently, the token is still in the experimental phase, although the basic core infrastructure has already been constructed, tested, and examined.

A spokesperson mentioned to Forbes:

AGCS is further exploring blockchain technology to simplify and accelerate cross-border insurance payments for its corporate customers. A project team is in the advanced stages of development for a token-based electronic payment system to allow for frictionless, transparent, and instantaneous money transfers for a range of different types [of] payments.

About the Token

The “internal token” developed by Allianz aims to tackle issues of the inefficiencies of the worldwide money transfer for its global affiliates. It will be run on a proprietary blockchain built by the company, Adjoint.

Oliver Volk, the blockchain expert at Allianz, told Coindesk, the token would be “very helpful to get rid of FX constraints and other stuff we have to optimize, especially if you talk to certain currencies which we do not accept at our headquarters and have to be reconverted.”

Global Enterprises and Blockchain Adoption

Recently reported, the US insurance giant, State Farm, and the United Services Automobile Association were testing a blockchain-based solution to streamline the insurance claims process.

Other large mainstream players have also been experimenting with blockchain in 2019. JP Morgan Chase announced its JPM Coin, Facebook introduced Libra, and Walmart has been taking a step towards developing its own digital currency as well.

Image via Shutterstock

German Banks Authorized for Crypto Custody and Sales in 2020

From Jan. 1, 2020, German banks will be legislatively authorized to sell and provide custody of cryptocurrencies as reported by German newspaper Handelsblatt.

German Parliament passed the new law on Nov.29, amending the fourth EU Money Laundering Directive. The bill was altered for the final version to allow financial institutions to act as custodians, conditional to procuring the relevant license. Previous iterations of the bill required banks to store cryptocurrencies with third-party custodians—as the change occurred late in the bills passing, the deadline for financial institutions has also been extended.

German Pioneers

Sven Hildebrandt, a partner at Hamberg-based Distributed Ledger Consulting, praised German legislators for their foresight and initiative. He told Handelsblatt, “The German legislator is playing a pioneering role in the regulation of crypto storage.”

While Hildebrandt affirms that the move is turning Germany into a “crypto heaven,” there are some German industry experts that are concerned with consumer protection under the new law. Niels Nauhauser’s told Handelsblatt that he has concerns that consumers may still have little understanding of how cryptocurrencies work and the risks that are associated with the industry, and may be given false confidence by institutional banks to invest in cryptocurrencies.

Nauhauser said, “So far, distribution was only possible for the banks through special bonds. Here, they had to inform their customers in advance about costs and key investor information. This is not the case in direct sales of Bitcoin.”

Image via Shutterstock

Commerzbank Applies for Crypto License

After the German commercial bank (Commerzbank) applied for license encryption earlier this year, it will become the country’s first major bank to provide encryption currency if they are approved to get the operation license.

German bank Commerzbank also appears to be strengthening its crypto offering after applying for a crypto license earlier this year in the first quarter. A spokesman for the bank confirmed on April 14th.

Bernd Reh, senior spokesman for Commerzbank stated that:

“We entered into a cooperation with Deutsche Börse and Fin-Tech 330x in spring 2021. In addition, we are pursuing our own digital asset strategy and are also planning our own offerings for our customers in the coming years. We have applied for a license from the Bafin for the safekeeping of crypto assets. The future offer is initially aimed at institutional customers.”

Commerzbank, founded in 1870, is one of Germany’s three original banks. The bank hopes to expand the business of custody and trading of non-physical assets and build its own digital ecosystem. It is estimated that at least 25 licence applications are awaiting a decision from the Federal Financial Supervisory Authority.

Bitpanda is Germany's first "European retail" crypto platform.

The news that Bitpanda has secured a cryptocurrency custody license from the German financial organization known as BaFin was published in a post on the company’s official blog, where the announcement was made.

Following the acquisition of this license, the cryptocurrency exchange that maintains its headquarters in Austria is now legally authorized to market its services to individuals who are located in Germany.

In addition to this, Bitpanda said that they were the first retail bitcoin exchange to be founded in Europe to achieve this particular distinction.

As a direct consequence of the collapse of the FTX cryptocurrency exchange, people are paying more attention to cryptocurrency exchanges that do not have any rules and operate outside of a country’s jurisdiction.

Because of this, a significant number of exchangers are working toward obtaining licenses in various nations so that they can provide evidence that they are a trustworthy business.

Bitpanda is now legally regulated in the country of Sweden, joining the ranks of other countries like as Austria, the United Kingdom, Italy, the Czech Republic, and Spain. The number of nations in which Bitpanda is legally regulated has increased with the acquisition of this new license.

In the bitcoin sector, there were already four other businesses that have the license before Coinbase, Kapilendo, Tangany, and Upvest were able to secure it for themselves.

Bitpanda claims that it is the first “European” retail bitcoin platform to acquire the license since its headquarters are located in Austria. This is because Austria is considered to be part of Europe.

Since the collapse of FTX, the subject of how to give licenses to and otherwise govern cryptocurrency exchanges has been at the forefront of public conversation. Specifically, the question is whether or not cryptocurrency exchanges should be licensed at all.

According to Jon Cunliffe, who is the deputy governor of the Bank of England, the BoE plans to set up a “regulatory sandbox” in order to establish how to successfully supervise exchanges in order to discover how to properly oversee exchanges. In addition, the Senate of the United States has started conducting hearings to study efficient methods to regulate cryptocurrency exchanges. These hearings are being held as part of an ongoing investigation.

German Authority Cautions Of New Banking And Crypto Malware "Godfather"

The German authorities in charge of financial matters have issued a warning in reaction to the rapid spread of a new piece of financial malware that affects banking and cryptocurrency apps. The malware is causing disruptions to users’ transactions.

Godfather is a piece of malware that can be found in banking and cryptocurrency applications and steals user data. On January 9, the Federal Financial Supervisory Authority (BaFin) of Germany published an official statement warning customers about Godfather.

BaFin’s findings, the newly discovered malware is aiming its destructive capabilities at over 400 banking and cryptocurrency applications, some of which are even used in Germany.

The Godfather virus deceives users into entering their login information by claiming to be the websites of reputable banking and cryptocurrency programs. This allows the infection to steal sensitive information.

According to the regulating authority, it has not yet been determined how the virus infects the devices that customers use in their everyday lives. It is well knowledge that the virus will send push notifications in an effort to obtain the codes for two-factor authentication.

The first warnings regarding Godfather appeared in December, with reports indicating that the virus was affecting Android cellphones and targeting individuals in a total of sixteen different nations.

The malicious software is said to have undergone significant code upgrades and improvements and has experienced a significant increase in activity over the past few months. According to reports, cybersecurity professionals from Group-IB were the first to discover the Godfather trojan in 2021. However, according to reports, the software has experienced a significant increase in activity over the past few months.

The information security experts at Group-IB have found that more than half of all applications that have been targeted by Godfather are banking apps, with the majority of these apps having their roots in the United States. One of the countries that has been hit the worst by the crisis is Germany. Other countries that fall into this category include Turkey, Spain, and Canada.

In addition, there are 110 bitcoin exchange websites and 94 cryptocurrency wallet programs that are known to be targeted by the virus.

In recent years, cryptojacking has developed as one of the most common types of cybercrime that targets cryptocurrency applications.