Germany has quietly moved one step closer to be the world’s crypto-superpower

Germany – The Ministry of Finance has drafted a bill updating the German legal framework on securities. Why is it important? It concerns tokenized shares and other securities.

Germany has chosen a proactive approach to crypto

The proactivity of German regulators could shape the future in a world of cryptocurrencies for the entire planet. As a result, Germany is slowly becoming a world cryptocurrency superpower. We are seeing how the world’s interest in crypto is increasing and the legitimacy of crypto assets is also related to it. All indications are that a new era of digital assets awaits us.

The demands of investors in the new millennium are definitely different from what people were used to a few decades ago. Times have advanced and Bitcoin is not just a symbol of freedom. Cryptocurrencies offer new forms of assets that are slowly gaining attention as well as seriousness. According to some, it can be a great advantage for states to prepare for a new trend as soon as possible. As you probably know, German banks can apply for permission this year to offer cryptocurrencies to clients. Now we have another interesting proposed change.

What’s new in Germany

German Ministry of Finance issued a very important press release. Regulators have made progress on blockchain policy in Germany. They are preparing a bill that will include the issuance of tokenized securities and change the current requirements for financial instruments.

At present, all financial assets issued in Germany need a paper document called securitization. If the law passes in its current form, it will create new legislation extending this requirement to digital signatures for tokenized assets. The paper requirement is hardly compatible with new technologies, such as cryptocurrencies or blockchain-based electronic bonds.

Germany is on the threshold of creating a solid foundation for the digital capital markets of the future. In the country, securities could be separated from paper certificates. This is a step towards digital assets, such as tokenized securities, and other achievements of modern trends in the world of finance. In essence, Germany is gradually profiling itself as a country that relies on blockchain and digitization. The report follows other changes that have taken place since September 2019, when the German Ministry of Finance issued a 24-page document on its national blockchain policy.

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