REALISTO Update

The regulatory difficulties, which we have outlined in some of our last updates, are still continuing to hinder the legally compliant implementation of our project. In this update, we want to explain the situation in greater detail:

REALISTO is based in Germany, a country that takes finanical regulation quite seriously. Therefore, we strive exclusively for a regulation-compliant solution for the on-the-spot exchange of cryptocurrencies within Germany. Alternative solutions in other countries with legal “gray areas” may work in the short term, but they can prove to have a negative long-term effect for the project.

Trading via a regulated exchange partner is currently not possible as there is no regulated crypto exchange in Germany at present time. Another problem is that the tokens issued by project issuers are basically security tokens. There is currently no regulated trading center in Germany (and globally). Coinbase itself has announced that it has received permission to trade security tokens from the SEC, and then revoked the statement after just one day.

Therefore, the founders of REALISTO, Rouven and Leonard, have decided not to wait any longer for the solution to this problem to come around and have decided to push for a solution proactively. Not only for REALISTO’s benefit, but for all ICOs who have the same problems as us.

We are going to apply for a permission to operate a trading platform with security tokens in Germany and we have taken the necessary legal precautions and prepared the preliminary work. We will apply for a license according to §32 KWG. This permission is equivalent to a “small banking license” and also allows us to exchange cryptocurrencies on the spot. The entire application process will last for 6 to 10 months. We will keep our community updated during this process. We will not raise the necessary capital through an ICO and will use classic financing methods instead.

In the meantime, there are also exciting news for the planning of the proof of concept. The markets are moving up again. Many economists (Mastercard, Wells Fargo) are showing signs of wanting to enter the crypto market. For REALISTO, rising prices mean that a proof of concept item is being purchased. The proof of concept property will simulate the REALISTO concept on a small scale. All REA token holders will benefit from this. We have several properties in view and are currently in negotiations. As soon as the situation becomes more concrete, we will inform the community.