• Germany has been approved to digitize stocks as “crypto shares”.
• The Future Financing Act seeks to integrate regulations from corporate law, capital markets, and tax laws.
• Germany is the most crypto-friendly country in the world, with Coinbase’s German subsidiary recently granted a crypto custody business license.
Germany Approves Digitization of Stocks as „Crypto Shares“
The German Ministry of Finance announced the Future Financing Act this week, opening the door for the issuance of „crypto shares“ on a regulatory basis. This act seeks to integrate regulations from corporate law, capital markets, and tax laws. Public companies can now choose whether to issue their stock as traditional or electronic shares. These electronic shares can be registered in a central register or on a blockchain, resulting in the creation of „crypto shares“.
Germany’s Crypto-Friendly Status
According to Coincub’s Q1 2022 Global Crypto ranking, Germany had surpassed Singapore as the most crypto-friendly country in the world. Cryptocurrencies are accepted as long-term investments in Germany and it has some of the most Bitcoin nodes in comparison to other countries with smaller populations and GDPs. Coinbase’s German subsidiary has also been granted a crypto custody business license by the Federal Financial Supervisory Authority while Deutsche Boerse listed more than 20 crypto exchange-traded products on its digital exchange Xetra. Furthermore, Sparkasse savings bank is interested in providing crypto wallets which shows an even stronger commitment to cryptocurrency adoption by institutions.
Benefits Of Crypto Shares
The issuance of „crypto shares“ offers several benefits for companies such as increased security due to immutability and no need for intermediaries when issuing securities which makes it more cost effective and efficient for investors looking to invest in stocks digitally instead of using traditional methods such as paper certificates or physical share registers. Furthermore, blockchain technology allows for easier tracking of ownership rights and faster transfer times so that changes can be made quickly without any delays or extra costs associated with manual processes. The use of smart contracts also ensures that all conditions are met before any transaction takes place making it even more secure and reliable than traditional systems.
Conclusion
Germany is one of Europe’s most crypto-friendly countries having recently approved digitization stocks as “crypto shares” through its Future Financing Act legislation opening up access to capital markets for start ups and growth companies alike who want to take advantage of this new way of raising equity funds securely and efficiently without relying on third parties or manual processes which are often costly and slow down transactions significantly compared with digital solutions offered by blockchain technology.
Takeaways
• Germany has given regulatory approval to digitize stocks as “crypto shares” through its Future Financing Act legislation .
• Germany is regarded as one of Europe’s most crypto-friendly countries with Coinbase’s German subsidiary being granted a crypto custody business license earlier this year .
• Companies can benefit from increased security due to immutability , no need for intermediaries when issuing securities , easier tracking ownership rights , faster transfer times through smart contracts etc .