Germany introduces “crypto stocks” issuance law.

Germany was already known worldwide as a crypto-friendly state, but this week it goes one step further. The Federal Ministry of Finance gives the so-called Future Finance Act At the. New legislation that must, among other things, allow the issuance of a cryptographic share.

What’s the point?

With the new financial law, Germany wants to do everything it can to bring as much promising technology into the country as possible. By making it interesting for startups and existing tech companies to establish themselves in Germany, the country should definitely become the epicenter of the tech world in Europe.

“We want Germany to become the main location for start-ups and growing companies. That is why we want to facilitate access to the capital market and facilitate fundraising. Small and medium-sized companies will also benefit from this,” said Interim Finance Minister Christian Lindner.

New legislation in Germany also opens the door for so-called cryptocurrencies. Once the new legislation comes into effect, companies can choose to issue traditional paper shares or opt for a digital variant.

A step forward

Patrick Hansen, a crypto influencer who specifically monitors the movements of the German government, is very excited about this decision by the government of our eastern neighbors. “The issuance of tokenized securities and certain funds is already possible under current German law. Equity is the next big step forward,” said Hansen.

In principle, it does not seem to matter which parts of the blockchain your shares are issued through. In order to issue shares, only a few conditions must be met.

Blockchain stocks could theoretically make buying and selling stocks more efficient. In the current system there are often at least three parties between shareholders and companies. Issuing shares on the blockchain could potentially create a direct relationship between companies and their shareholders.

Source: Btc Direct

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