Germany wants its blockchain regulations to align with EU laws.
On March 1, Germany’s justice and finance ministries released a proposal to develop a state-run register to regulate the country’s A digital store of monetary value the primary use of which is for buying and selling goods, services, or property, such as Ether or bitcoin. Cryptocurrencies are cryptographically secured against counterfeit and often are not issued or controlled by any centralized authority.“>cryptocurrency industry.
According to the proposal, the purpose of creating a government-regulated register is to promote the use of blockchain and position Germany as a leader in the field of financial technology: “The fact that other states also allow the use of blockchain technology for financial instruments will ensure its attractiveness to the local financial center through regulation in Germany.”
However, the German government wants to develop the regulation in conjunction with existing European Union (EU) laws instead of developing a “German special way” that would have to be abandoned once the EU consolidates its blockchain and cryptocurrency regulations.
According to a March 8 report from Reuters, this proposal is the first phase of Germany’s “blockchain strategy,” which was agreed upon during a March 2018 coalition accord between Chancellor Angela Merkel’s conservative Christian Democrats and the left-leaning Social Democrats.
Reuters also indicated that Germany is considering amending current regulations that require financial instruments to have physical counterparts that investors can hold in their hands. At first, these amendments will only affect electronic bonds. The German ministries will focus on amending laws related to digital stocks at a later date.