United States, China, Russia, United Kingdom, France, Japan and Israel are some of the superpowers in the world which have developed themselves economically due to their gross domestic product (GDP).
But cryptocurrency is the new cool! And in terms of crypto, Germany is joining the race to become the crypto superpower in the world. The Finance Ministry in Germany has drafted a bill to update its legal framework regarding securities.
The bill specifically targets tokenized securities and will bring digital assets closer to traditional financial instruments.
It thus shows that German regulators are taking a proactive approach, placing their country at the front of the race for legalizing digital crypto money.
The German Finance Ministry, in a press release on August 11, said that regulators are drafting a bill that will cover the issuance of tokenized securities as part of the country’s blockchain policy.
The bill wants to change the current requirements for financial instruments. Currently, all financial assets issued in Germany need a paper document behind them, a procedure called securitization.
If the bill passes intact, it will create new legislation expanding this requirement to cover digital signatures for tokenized assets.
The paper requirement is hardly compatible with new technologies like cryptocurrencies or blockchain-based electronic bonds. For instance, a single Bitcoin transaction would require tens of paper registries, one for each person and time that the asset has been transacted.