German Ministry of Finance Calls for Regulation of Digital Securities Market
Representatives of the agency recommended the government confirm the legal status of cryptocurrency, consider it as the legal form of financial instruments and, respectively, to regulate their circulation.
The published document says that the securities do not have to be documented, thus they should be applied without restrictions even in digital form.
It is necessary to change the current legislation, making it more flexible and allowing it to better adapt to rapidly changing technical standards and requirements.
Digital bonds and digital shares are the first ones to be legally regulated. All such papers must be registered in a single central register, controlled by a state agency which will help avoid manipulation and protect investors.
E-CHAT Team’s Opinion
This is a reasonable and fully justified step, thanks to which the stability of the crypto field will increase, while all projects will benefit from this. Of course, it’s still far from complete victory.
The recommendations of the Ministry of Finance now are in the form of a draft law on STOs, submitted to the German parliament. Although these are only materials, the discussion of which took place behind closed doors, but at the same time, this is a big step for the whole of Europe.
Germany is the country with the most stable economy. By encouraging digital assets, it encourages other countries to take a similar position. All this has a positive effect on the crypto field.