Germany is among the leading countries acknowledging the capabilities of blockchain and cryptocurrency technologies. This week, the German federal ministry of finance has adopted The Future Financing Act. This law will create a regulatory framework for launching “crypto shares”. Crypto shares are digital assets that are regulated similar to traditional shares features. It significantly reduces the bureaucracy and modernizes the capital markets. However, it is not made mandatory for a corporation to issue shares as electronic or cryptographic ones. The choice between ordinary and cryptographic shares is within reach of a specific corporation.

This law bases on the unification of several regulations, including corporation law and capital markets regulations. In addition, it widens the opportunities of tax laws. According to the German federal ministry of finance, this law will offer potential investors an enhanced level of security. In the past, investors often had to fall back on substantial bureaucracy. With the new legal framework, the investment process should become more straightforward.

Overall, The Future Financing Act should significantly accelerate the adoption of the blockchain technology within the German corporate environment. Especially traditional investors can benefit from its safety-oriented protocol design. Major corporations in the German stock market had already started implementing blockchain technology during 2019. From July 2021, the new regulations are supposed to be transferred into German legal systems.

Those corporate changes also offer a glimpse into the future. As more and more countries are starting to consider and implement blockchain technologies, the status quo of stock markets might be soon due for a major upheaval. Cryptocurrencies have made one of the strongest steps further into the mainstream so far. For example, the US-based investment company Grayscale has been able to collect nearly 4 billion $ in cryptocurrency investment during 2020.



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