Electronic Securities

  • Crypto industry in Germany loses ground – regulation of electronic securities at risk

    In September 2019, the German Federal Government presented its blockchain strategy, which should have established Germany's position as a pioneer in crypto-regulation in the future. In particular, attention was paid to the ambition to open up the German capital market to electronic securities, so that the – currently mandatory – embodiment of securities in a document would no longer strictly apply. This would bring enormous advantages for issuers. After nine months – the corresponding paper of the Federal Ministry of Finance and Federal Ministry of Justice dates from March 2019 – a certain disillusionment seems to have replaced the (justified) euphoria. Does this digitalisation stop result in a disadvantage to German FinTechs?