Germany’s Free Democratic Party Says The Government Is Failing At Creating A Legal Crypto Framework
German Government Failed To Create A Blockchain Framework Claim FDP’s Representatives
Representatives from the Free Democratic Party (FDP) in Germany argue that the government was not able to create a legal framework for blockchain technology and its possible applications. During a public hearing, the party presented a proposal titled “Creating a Sustainable Framework for Distributed Ledger Technology in the Financial Market.” This proposal was presented to the Bundestag’s Finance Committee on March 11.
FDP Proposes To Create A Blockchain Framework
During the hearing, several regulators, entrepreneurs, and interested participants have been present at the hearing. The proposal presented by the FDP aims at creating a legal and regulatory environment to allow companies to develop blockchain-related applications on the economy and the public sector.
They talked about the potential of virtual currencies and Initial Coin Offerings (ICOs) for enterprises to receive funding in an easy way. They also mentioned that due to the lack of clarity in the market, blockchain adoption and innovation are moving to other more friendly jurisdictions around the world.
On the matter, they’ve said:
“The potential of blockchain technology can only be realized if there is legal certainty for its application and a workable legal framework for its use. The Federal Financial Supervisory Authority (BaFin) and the Federal Ministry of Finance have so far failed to develop competencies and make the necessary legal adjustments.”
There were some experts that questioned the proposal. For example, Ralph Baerliga, from the consultancy firm BearingPoint Inc., expressed doubts about how laws related to blockchain technology could help the space. For him, technologies shouldn't be hindered or preferred by law.
Eric Romba, part of the law firm Lindenpartners, said that although it might not be necessary to have legislation for blockchain technology, there must be greater legal certainty for the blockchain space.
There are several countries that are starting to regulate the space trying to enhance the positive effects that blockchain and cryptocurrencies could have in the economy.