Association Of German Private Banks (Bankenverband): New Regulation For Crypto Securities Needed
German Bank Association Believes That A New Regulation For Crypto Securities May Be Needed
The whole world is currently discussing the blockchain technology now. Because this new technology is so disruptive, some changes have to be made in order to accommodate it. Now, the Association of Germany Private Banks (Bankenverband) has recently affirmed that there is a real need for more regulation in the blockchain industry.
According to the German organization, securities based on the distributed ledger technology (DLT), also known as the blockchain, may need some new sort of regulation. The concerns of the banking association were posted here (the post is in German, though).
The post affirms that the securities issues using these new technologies need regulation as they require a new need for safekeeping and settlement and then the corporate actions of the company might have to change in order to accommodate that. Therefore, adaptations in how the European and national regulation exist may be necessary as the technologies will create a new demand for it.
Crypto Regulation In Germany
Germany is one of the most important countries in Europe and the current leader of the block, so it is obvious that the country is expected to be one of the leading blockchain potencies. The German Federal Ministry of Finance has recently published a paper with the key issues of blockchain-based securities and how to regulate them.
However, so far, the regulators of the country are struggling a lot to come up with a workable legal framework, though. In fact, the whole world is and only a handful of countries are coming up with good results, as it is always a very hard process to regulate the crypto world, due to its mostly decentralized nature (which at least a little bit easier with securities).
At the moment, there is an ongoing debate in Germany on whether the blockchain strategy of the country should include a framework for token issuance or not.