Germany Introduces Blockchain Regulations

Blockchain technology, which is relatively a newer innovation has gained both ground and popularity over these last few years, so much so, that many countries are either thinking about using it or have already begun to do so. Germany is one such country, whose interest in this technology has been palpable, to say the least. While blockchain enthusiasts were wondering what the country’s official stance on blockchain might end up to be, the German Federal Ministry of Finance has recently released a paper, which is focussed on discussing the regulation of blockchain technology in the country.

It was earlier this very month that they had started to make their initial forays into the implementation of it, on a much wider scale that is. The paper which was released by the German Federal Ministry of Finance elaborated on the electronic securities and issuance off crypto tokens. The paper also discussed why electronic security regulation should be technology-neutral. This, however, implies that it could function via blockchain or distributed ledger technology. Crypto tokens will not be subject to the existing marketing regulations because they do not represent securities, investment or other financial instruments, in accordance with existing German law.

The announcement specifies that before proposing a draft bill, on this issue, the Federal Ministry of Justice and Consumer Protection and the Federal Ministry of Finance will come up with a comprehensive picture of the measures outlined in the key issues paper, the main aims of which are to consolidate Germany’s position as one of the leading fintech countries.

Recently, the chief executive body of the German government which is the Cabinet of Germany revealed that the country’s blockchain strategy will be introduced by mid-2019, only after an online consultation process is conducted. According to reports the Ministry of Finance and the Ministry for Economic Affairs and Energy are reportedly preparing the strategy, with the expectation that other relevant ministries will contribute at a later time.

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.