Germany wants to allow securities tokenization!

German regulators are preparing a bill on tokenized securities
Federal regulatorsGermany will amend current legislation to facilitate the introduction of blockchain into the securities market.

11 August Federal Ministry of FinanceGermany (BMF) and the Federal Ministry of Justice and Consumer Protection (BMJV) have presented a bill regarding blockchain-based digital securities. Regulators believe that the introduction of equity tokens is a key aspect of the implementation of the blockchain development strategy.

In accordance with applicable lawGermany, financial instruments classified as securities must be certified. BMF and BMJV are confident that blockchain technology will guarantee liquidity and ensure regulatory compliance by replacing the paper certificate. To do this, you need to make the appropriate amendments to the legislation.

According to the German authorities, the bill will introducemore clarity in the regulation of blockchain-based electronic shares. Control over the issue of digitized securities will be carried out by the Federal Agency for Financial Supervision of Germany (BaFin). In addition, the department will regulate the work of decentralized registries in accordance with the law "On banking" in Germany.

Trading of tokenized shares continuesdevelop. In April, the startup Securitize launched a service for trading stock tokens on the Ethereum network with the mandatory completion of the KYC/AML procedure. And in June, Japanese financial institution Tokai Tokyo Financial Holdings announced plans to use blockchain in the finance industry to issue digital securities.

However, the president of the financial company Fidelity Digital Assets, Tom Jessop, believes that securities do not suffer from a lack of liquidity, and therefore do not need tokenization.

source: https: //bits.media/nemetskie-regulyatory-gotovyat-zakonoproekt-o-tokenizirovannykh-tsennykh-bumagakh/