Germany, one of the most crypto-friendly nations in Europe, announced the approval of 'Future Financing Act' this week. It gives a regulatory basis for the issuance of 'crypto shares' to public corporations and a modern, international and less bureaucratic capital market. The act aims to bring corporation laws, capital markets and tax laws under one consolidated regulatory system in order to facilitate the equity raising of small and medium-sized companies. According to Patrick Hansen, Circle's Director of EU strategy and policy, these crypto shares can be registered either in a central register or on a blockchain.

Commenters highlighted the significance of Germany's open-minded regulations on digital securities as opposed to the U.S.'s enforcement and crackdown on cryptocurrencies. In addition to the future issuance of Crypto Shares, tokenized bonds and certain tokenized funds are already possible under German existing laws.

Germany's decision to adopt crypto friendly arrangements has been further strengthened by the license granted to Boerse Stuttgart Digital for its crypto custody business. Boerse Stuttgart Group CEO, Dr. Matthias Voelkel, said that the BaFin license is an opportunity to provide financial institutions across Europe with secure access to the growing market for digital assets.

The positive outlook of German regulatory authorities on crypto securities shows its commitment towards developing world leading capital market regulations. As Germany continues to pave its way for a crypto friendly future, it sets a great example for other nations to follow suit.



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