German Ministry of Finance Plans to Support Digitalization of Securities by Blockchain


“Future Fund Law” to support startups

Germany’s finance ministry unveiled plans for a future financing law on Wednesday. It is intended to support start-up companies, and the issuance of electronic securities using blockchain technology is also in mind.

According to the ministry, the bill will help pool more private capital for key future investments, such as “climate change and digitalization.”

The German Ministry of Finance needs to make Germany’s capital markets more modern and international in order to make Germany more attractive as a financial market and business environment, and to promote the German stock market. pointed out. On top of that, the aim is to make it easier for start-ups, growing companies, and SMEs to access the capital market.

German Finance Minister Christian Lintner said:

We want Germany to be a hub for start-ups and growth companies. To that end, we will improve access to capital markets and facilitate the procurement of equity capital. Small businesses would also benefit from this bill.

According to the future fund law, the company plans to build a comprehensive system of corporate law, capital market law, and tax law. The following items are related to blockchain.

  • We will digitize the capital market by enabling the issuance of shares through digital securities based on blockchain technology.
  • Consider improving transferability of virtual currency

Germany’s finance ministry said digitizing stock trading was an important step towards making the country’s capital markets more attractive. It also goes on to say that it is considering improving the legal framework for acquiring cryptocurrencies to make transfers more secure.

Other than blockchain-related, the following measures are mainly mentioned.

  • Lowered the minimum IPO capital from the current approx. 180 million yen (1.25 million euros) to approx. 140 million yen (1 million euros)
  • Promoting investment by institutional investors in start-up companies, growth companies, and SMEs
  • Create incentives for asset building, especially through stock investment, by changing employee savings allowances
  • Promoting digitalization and internationalization of supervisory laws

What is an IPO

An abbreviation for IPO (Initial Public Offering), a new listing on the securities market to raise funds through the issuance of shares.

▶Cryptocurrency Glossary

Top cryptocurrency ranking

According to the world cryptocurrency ranking announced in October 2022 by the cryptocurrency analysis company Coincuba, Germany ranked first.

The reason for this is that they have a “positive outlook” on cryptocurrencies, are actively working on cryptocurrency policies, and are working to clarify regulations.

Also, in Germany, if you sell virtual currency after one year has passed after acquisition, even if you make a profit, it is exempt from tax. In this way, he also mentioned that long-term investment in virtual currency is treated preferentially in terms of taxation.

connection: Global cryptocurrency ranking | Germany keeps first place overall, Japan falls to 27th place

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