Germany plans to issue electronic shares on blockchain, boost startups

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The German government is calling for more welcoming regulations for domestic financial innovation start-ups, according to the newly drafted ‘Future Finance Law’. introduced The Ministry of Finance made the announcement on April 5.

The law’s main goals include the digitization of capital markets through the issuance of electronic securities on the blockchain and increased portability of crypto assets. According to a translated version of the bill, Germany’s “capital markets need to become more modern and efficient in order to mobilize private capital for future investments.”

One of the government’s goals is to create a favorable environment for domestic start-ups and investors. The law reduces the minimum market capitalization for an initial public offering (IPO) from €1.25 million ($1.37 million) to €1 million ($1.1 million), allowing institutional investor start-ups, SMEs, and special purpose acquisitions. (SPAC) investment becomes easier. .

according to According to local media reports, the new rules apply to businesses employing up to 500 people and generating revenues of less than €100 million ($109 million).

German Finance Minister Christian Lindner said in a statement: “We want Germany to be a leading location for start-ups and growing companies.” Small businesses will also benefit from this. ”

The government claims the move will make Germany more attractive to investors and promote a culture of investing in the stock market. “Start-ups, growth companies and SMEs need easier access to capital markets,” the minister said.

Germany is a member of the G7, a group of the world’s seven largest democracies. Members of the G7 are working together to tackle tougher cryptocurrency regulations, which many in the industry believe could stifle innovation and growth. The new G7 agenda will be announced at its next meeting in Hiroshima in May.

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