Germany Proposes State-Run Register to Regulate Blockchain and Crypto Industry

Germany – The justice and finance ministries revealed a proposal on March 1 to establish a government-run register to regulate the blockchain and cryptocurrency industry in the country.

The proposal states that the goal of establishing a state-regulated register is to support adoption of blockchain tech and make Germany a leader in terms of financial technology: “The fact that other states also allow the use of blockchain technology for financial instruments will ensure its attractiveness to the local financial center through regulation in Germany.”

The German government, however, desires the regulation to align with present European Union (EU) laws instead of creating a “German special way” that would have to be abandoned once the EU enforces its own blockchain and cryptocurrency regulations.

A March 8 report from Reuters stated that the proposal is the first phase of the country’s “blockchain strategy,” which was decided during a March 2018 coalition accord between Chancellor Angela Merkel‘s left-leaning Social Democrats and conservative Christian Democrats.

Reuters also mentioned that Germany is thinking about amending current regulations that mandate financial instruments to have tangible counterparts that investors can have. Initially, these amendments will only have an effect on electronic bonds. The German ministries will look into amending laws pertaining to digital stocks at a later date.