The European Blockchain Convention served as the ideal place to discuss the issue of regulation around the blockchain industry. To do this, they had an excellent panel of experts in the area. However, in this article we want to highlight some details about the status of the regulation of Blockchain technology in Germany.
The expert in charge of developing this information was Dr. Nina-Luisa Siedler. Siedler is a founding member of the German Blockchain Association. He is also a member of the working group «Blockchain Policy and Framework Conditions»Within the Blockchain Forum and Observatory of the EU. Learn more about it.
Germany’s Situation Regarding Blockchain Regulation
It is one thing to read about Germany’s progress in regulating the blockchain sector, and another thing to hear from someone who is working right now to make it possible.
According to Siedler in Germany there are advances in this regard “But these were triggered by European anti-money laundering regulations”. In addition, he mentioned that “Not only did German lawmakers implement them, they took the opportunity to introduce a couple more things that are specific to Germany and are not based on European legislation”.
For example, within these regulations, it was ended up including a definition of cryptographic assets that turns them into financial instruments. So, according to German law, cryptocurrencies are also financial instruments, not just securities.
Next, the expert pointed out that the second main point was the introduction of a new license service for the custody of cryptocurrencies. “That happened earlier this year and, just a month ago, the German legislature finally published a draft on the new electronic Securities.”Siedler added.
Germany will therefore waive the current paper requirement for issuing securities, having introduced the concept of electronic records and specifically cryptographic records. According to Siedler, this is currently hotly debated in the European country.
“Specifically, the proposed law does not appear to include an exemption for issuers. Therefore, even electronic securities issuers will be required to obtain this license if they want to operate their own securities registry.”She explained. The expert noted that this was a bit surprising and for that reason it is now under debate.
Not all that glitters is gold
Although this may seem like a significant advance, Siedler explained that reality is not as bright as it seems. “Germany is not a very friendly environment for cryptocurrency services, because basically any type of service for now requires some type of license”, She emphasized.
However, as she said, the debate is still going on within Germany. Also, as you may have seen in previous CryptoTendencia posts, it is not only this country that is debating how to approach blockchain technology in Europe.