The German government approved a bill that legitimises fully electronic securities within a broader blockchain strategy. Previously, the law required issuers and holders of securities to document transactions only with a paper certificate, Reuters reports.
“The future belongs to the electronic version of the paper certificate. It reduces costs and administrative burden,” said Finance Minister Olaf Scholz.
The law allows replacing the paper certificate with a record in the central securities depository. A blockchain-based registry is also possible.
According to Justice Minister Christine Lambrecht, the law will provide legal clarity and boost the potential of new technologies.
In August this year, the bill to implement blockchain in the securities market for consideration was submitted by the Federal Ministry of Finance and the Federal Ministry of Justice and Consumer Protection.
At the end of June, the German securities-token platform Neufund announced its closure. The decision was attributed to government inaction toward the crypto industry.
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