Germany is one of the leading economies in the European Union. Now, it wants to become the hotspot for blockchain companies and token trading. According to a local newspaper Handelsblatt, the ruling coalition government of the country plans to adopt clear regulations for tokens. This will happen as early as this summer.
Germany Wants to Lead the European Blockchain Revolution
Speaking to Handelsblatt, Thomas Heilmann, the spokesperson for the CDU/CSU ruling coalition, said:
We consider it of paramount importance that we improve blockchain technology for Germany in 2019. He revealed that the ruling coalition plans to pass these regulations before the start of the Parliamentary summer break.
Until now, Germany has maintained a cautious and conservative approach to blockchain and cryptocurrencies. But this is about to change, according to Heilmann. He claimed that a working paper on the topic of regulating tokens is already available. If the German Parliament adopts these regulations, financial institutions will be able to issue bonds not only on paper, but also as digital tokens.
Even the opposition welcomes this initiative of the ruling coalition. As Frank Schaeffler, the blockchain expert of the Free Democratic Party said:
The federal government has finally woken up. Now we must move fast. Crypto issuers and investors seek a regulated financial center for their business, that is internationally presentable.
Catching Up With Other Blockchain Friendly Countries
The opposition specialist has reasons to show frustration at the current state of crypto adoption in Germany. So far, two of the smallest countries in Europe in terms of territory and population are leading the blockchain adoption rate.
On one hand, the island-state of Malta aims to become a crypto-friendly country. On the other hand, Liechtenstein submitted the Digital Law in Value Added Rights in 2018. In view of the initiatives in these countries, the speed with which the German Parliament wants to adopt blockchain regulations becomes understandable.
A Double Benefit: For the Economy and for Investors
After all, becoming a blockchain-friendly country is a win-win situation for all parties involved. The economy of Germany will grow even stronger. It will attract digital assets companies to do business in a blockchain-friendly legal environment.
Also, the new regulations would be good news for investors. They will benefit from extra security for trading cryptocurrencies and blockchain bonds. Thus, if bond buyers do not receive their due monies from token issuers, they will be able to transfer their tokens to a notary public. Once an official enforcement letter is ready, the creditors can seize the issuer’s digital wallets, avoiding long and costly court procedures. As the President of Blockchain Federal Association, Florian Glatz, explained to Handelsblatt:
From an investor’s point of view, the idea is good, because claims can thus be enforced in the case of a dispute.
The First Steps Are Already Being Made
To prove their commitment to the decision to regulate blockchain, the Federal government of Germany will initiate a hearing in the next few days. Chaired by the Ministry of Justice, the hearing will allow blockchain registers to give their input on the legal initiative.