Germany is solidifying its reputation as a crypto-friendly nation with its latest regulatory approval of crypto shares. The move is part of the Future Financing Act of the German Ministry of Finance, which aims to bring together regulations from corporation laws, capital markets, and tax laws.
The new act in Deutschland will allow public corporations to issue their stocks as electronic shares, which can be registered on a blockchain or a central register. The move is expected to modernize the capital market and make it more accessible to small and medium-sized companies.
Benefits of Crypto Shares
The introduction of crypto shares is expected to facilitate the raising of equity and provide a more modern, international, and less bureaucratic capital market. The move is seen as a “breath of fresh air” compared to the ongoing crackdown in the United States. While it does not directly affect the crypto markets, it is a step forward in the tokenization of real-world assets.
According to Patrick Hansen, Circle’s Director of EU strategy and policy, Germany’s open-minded regulations have already allowed tokenized bonds and certain tokenized funds to be issued. The approval of crypto shares is the next step in this direction.
Crypto Custody License for Boerse Stuttgart Digital
Boerse Stuttgart Digital, a division of Germany’s second-largest stock exchange, has received a license for a crypto custody business early on. This means that the firm will offer crypto trading and custody services to its institutional clients. The license was granted by the German Federal Financial Supervisory Authority (BaFin), making Boerse Stuttgart Digital the first established market participant to hold cryptocurrencies in custody without any acquisitions.
CEO of Boerse Stuttgart Group, Dr. Matthias Voelkel, and Managing Director of Boerse Stuttgart Digital, Dr. Oliver Vins, expressed their confidence in the move, which they believe will provide financial institutions across Europe with secure access to a growing market for digital assets.
The approval of the exchange’s license goes in harmony with the latest regulatory approval of Germany for the issuance of crypto shares.
Germany is Now the World’s Most Crypto-Friendly Country
Germany has already overtaken Singapore as the world’s most crypto-friendly country last year, thanks to its pro-crypto regulations. This latest move is expected to reinforce this position and cement the nation’s reputation as a leader in the crypto space.
To date, Germany has the biggest slice in the Bitcoin and Ethereum blockchain. Crunching the numbers, the country uses 9% of the Bitcoin nodes at 1,443 and over 14% of Ethereum nodes at 847.
In a survey released by Gemini last year, 17% of its respondents from Germany revealed that they owned crypto. The same study found that over 50% of Germans are “crypto curious” and are looking to acquire crypto in the same year.
Final Thoughts
The introduction of ‘crypto shares’ complemented by the approval of a crypto custody business license for Boerse Stuttgart Digital is a significant step forward for Germany’s crypto regulation. The move is expected to facilitate the raising of equity and modernize the capital market while making it more accessible to small and medium-sized companies. With its open-minded regulations and pro-crypto stance, Germany is fast becoming a leader in the crypto space.