germany setting new precedent for cryptoThe Ministry of Finance, Germany, has accepted the use of securities based on blockchain as a legal form of financial methods. This news came as a surprise, when it was suggested in an announcement on Friday, that it was now time the law in Germany accepted such securities, suggesting further that law and regulations should be enforced in support of such changes.
In a report published last week by the German Finance Ministry, it was stated that from now onwards, the compulsory documentary embracement of paper form would not apply any longer without restraint. The government of Germany wishes to proceed initially with electronic contracts and later shift its focus to the digital shares.
From the ministry’s viewpoint, this will make sure that there is no involvement of risk regarding meddling or tampering. With regards to the utility tokens and where they fall in the midst of these reforms, it was stated that as per the Securities Trading Act of Germany, they are not considered as investments, securities or any other financial tokens. However, the law could determine the public offering of utility tokens to occur only if a data sheet has been published previously by the provider.
The German Parliament is also currently going through a draft for a bill regarding Security Token Offerings despite the stance of Senator Thomas Heilmann, who also happens to be a member of the Christian Democratic Union (CDU), firmly believes that even though it is a fascinating new technology, a vast majority of people are unable to understand it thoroughly. He maintains that this demonstrates a gap in financial technology in Germany.
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