To Promote Blockchain Use, Germany Suggests State-Run Register
Whenever a government chooses to establish regulations for the use of cryptocurrency and blockchain, their primary concern is usually that of keeping its citizens safe. In an effort to get more people involved in the blockchain without compromising safety, a recent report from Reuters indicates that the finance and justice ministries of Germany already have a plan – launch a state-run register.
The proposal for this register, which spans over seven pages, offer the creation of a register, which would be used for regulation and for protection of investors. These regulations could ultimately contribute to the development of blockchain, and it would secure a more profitable spot in Germany’s financial market influence.
In the guidelines, the country also suggests easing the requirements there are presently on the market. These requirements presently state that there has to be a tangible product associated with financial instruments that investors will receive upon their purchase. Though the proposal is only speaking on the electronic bonds in the industry, the Reuters article states that digital stocks could ultimately be added later.
The Cabinet of Germany, which is the chief executive body of the nation’s government, said that the blockchain strategy that they plan to adopt will be officially introduced to the public by the middle of this year. The preparation of said guidelines is assigned to the Ministry of Finance and the Ministry for Economic Affairs and Energy. At a later date, other ministries that relate to these regulations are expected to enter the process.
Industry members have already made themselves a part of the discussion with the two ministries last month. One of the issues that they aim to address is with the protection of investors that choose to purchase digital bonds on the blockchain, though they’ve already started discussing a restriction that would only allow institutional investors to make the purchases.
The Boerse Stuttgart Group launched the Bison crypto-trading app early in the year, which is big news for the second-largest stock exchange in Germany. The new app makes it possible to trade Bitcoin, Ethereum, Litecoin, and Ripple at no fee. Though the app is presently available to German investors alone, all EU countries should be able to access it towards the end of 2019.