German regulators intend to introduce blockchain to the securities market, replacing paper shares and bonds with digital versions
The bill was submitted by the German Federal Ministry of Finance and the Federal Ministry of justice and consumer protection. The statement emphasizes that the adoption and implementation of tokenized securities is one of the key aspects of the government's blockchain strategy.
Regulators expect that the transition from paper to digital versions will not only increase the liquidity of securities, but also provide better legal compliance.
The bill clarifies the regulation of such instruments. The German Federal financial Supervisory authority (BaFin) will control the issue and circulation of tokenized securities. The Agency will also take over the management of decentralized accounting tools.
At the end of June, the German security token platform Neufund announced its closure. The decision was explained by the authorities ' inaction regarding the cryptocurrency industry.
