Germany's Federal Ministry of Finance and the Federal Ministry for Justice and Consumer Protection published an article focusing on the regulation of electronic securities and private encryption areas that will reposition the German fintech industry.
The report published an article on the regulation of the Federal Ministry of Finance and the Federal Ministry of Justice and Consumer Protection on electronic securities and initial coin offers (ICO).
Reference was made to March 12, 2018, a coalition agreement that tried to make the country a leading financial technology and digitization center and also developed a solid block chain strategy.
In the area of electronic securities, it was stated that existing German regulations regulating securities should be implemented with restrictions. Likewise, it has been proposed that the issuance of these securities may be technology-neutral and can thus be offered using distributed notebook technology (DLT).
ICONAs for the area of regulation, it was noted that in the past, crypto currencies were offered under the Securities Trade Law without being classified as investments, securities or other financial instruments.
Germany Fintech Capital Market Laws
This crypto removal will not be subject to the current regulations of the capital market and will be contrary to the issuance of electronic bonds, which may still be subject to the law.
Therefore, the article attempts to discuss the best ways to organize ICOs to promote consumer protection.
As such, the Federal Ministry of Finance and the Federal Ministry for Justice and Consumer Protection seek to provide a comprehensive understanding of the measures mentioned in the draft and which would lead to drafting the bill.
”The German government consulted with experts in the blockchain community to understand the potential of DLT before the 2019 strategy presentation.“
On October 22, 2018 BTCManager, the legislators in Germany blockchain technology and cryptocurrency also said they are trying to establish a legal framework to manage their units.