Mentioning further within the ‘release‘, the regulators elaborated on the introduction of rules for electronic securities along with the issuance of cryptocurrency tokens. The document adds that the regulation of electronic securities ought to be technology-neutral, which implies that they might be supported by blockchain, or DLT [Distributed Ledger Technology].
The issuance of cryptocurrency tokens based on blockchain supposedly won’t be subject to existing market rules since cryptocurrency tokens don’t represent securities, investment or other monetary instruments in line with the STA [Securities Trading Act]. Moreover, ICOs [Initial coin Offerings] of crypto tokens is placed up for discussion within the paper as investing in crypto tokens supposedly poses high-risks for investors.
The announcements also reads, prior to proposing a draft bill on the topic, the Federal Ministry of Justice and Consumer Protection along with the Federal Ministry of Finance ought to come up with a comprehensive image of the measures focused within the key issues paper. The measures supposedly aim to strengthen the role of ‘German‘ country as one of the leading fintech countries.
Recently, the chief executive body of the German govt., the cabinet of Germany, ‘disclosed‘ that the country’s blockchain strategy would be introduced by the mid of this year. Moreover, the cabinet declared that they’ll undergo an online consultation process before introducing the blockchain strategy. The Ministry of Finance along with the Ministry for Economic Affairs and Energy are reportedly getting ready the strategy, with the expectation that several other relevant ministries can contribute within the upcoming days.
Even earlier today, Germany’s justice and finance ministries ‘proposed‘ to launch a state-run register to hike up the utilization of blockchain to manage the sector, thereby defending investors from possible abuses. The rules additionally proposed easing existing necessities, that assume that monetary instruments must have tangible counterparts that could be purchased by investors