Germany to Move Securities onto the Blockchain

German regulators plan to bring blockchain to the securities market, replacing paper shares and bonds with digital versions.

The corresponding bill представили by the Federal Ministry of Finance and the Federal Ministry of Justice and Consumer Protection. In a statement it emphasised that the adoption and deployment of tokenised securities is one of the key aspects of the government blockchain strategy.

Regulators expect that the shift from paper versions to digital ones will not only boost the liquidity of securities but also ensure better legal compliance.

The bill clarifies the regulation of such instruments. BaFin—the Federal Financial Supervisory Authority of Germany—will oversee the issuance and circulation of tokenised securities. The agency will also assume responsibility for managing decentralised accounting instruments.

In late June, the German security-token platform Neufund announced its closure. The decision was explained by authorities’ inaction toward the cryptocurrency industry.

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