The Ministry of Finance in Germany has recently recommended that the country recognizes blockchain-based securities as a legitimate form of financial instrument and regulate them in the same way.
A paper went live in the digital currency news after it was published on Friday, where the agency says that securities can be issued in an electronic form and should not have to be documented on paper.
“German law should generally be opened up for electronic securities, i.e. the currently mandatory documentary embodiment of securities (paper form) should no longer apply without restriction,” an extract of the paper said, according to translation from German.
Right now, legislative efforts should create a framework that will regulate these digital instruments – along with the flexibility to adjust the rules to the changing reality of blockchain technology, as the ministry added.
“In view of the fact that the technical standards and requirements can change rapidly, authorization should be provided to regulate the specific technical details by legal regulation.”
The initiative is expected to start with electronic bonds and only later move to digital shares, mostly because of the amount of regulation necessary.
Also, there is a need for “separate regulations which should be provided for the acquisition and transfer of electronic securities as well as good faith protection.”
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