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German Political Parties raise discussion on implementing Regulation for Crypto Blockchain Industry

Dec 10, 2021

The SPD, the Alliance 90/The Greens, and the FPD suggested a draft of crypto and blockchain regulatory framework. The most influential political parties in Germany made a proposal of issuing a regulatory framework for cryptocurrencies and the blockchain industry. The Social Democratic Party (SPD) published a statement on their website, which suggests strict overseeing of crypto assets by the European Union institutions.

SDP’s position of Germany’s need of ‘comprehensive digital awakening’ is shared by such political parties as the Alliance 90/The Greens and the Free Democratic Party (FPD). The documents released by the parties come in the wake of campaigns performed by several parties prior to upcoming elections, which put Olaf Scholz as the favorite to become Angela Merkel’s successor. “The EU supervisory authorities should not only take care of the traditional financial sector but also prevent the misuse of crypto assets for money laundering and terrorist financing,” the document outlined. “We are aware of the fact that a digital awakening that safeguards our values, digital sovereignty and a strong technology base can only succeed in a progressive European framework,” the document added in regards to the ‘digital awakening.’

Optimism on Blockchain

However, the coalition still is positive about the current development of blockchain technology, pointing out that investments in artificial intelligence and other distributed ledger technology (DLT) could get incentivized in a forthcoming government. “Building on the measures taken in the last legislative period, we will do everything we can to prevent abusive dividend arbitrage transactions. To ensure this [system] is fraud-proof, we want new technical options, e.g., blockchain, to be used even more,” the three political parties commented in the document.

Moreover, the suggestion made by the parties can be aligned with a recent proposal made by Mark Branson, the new Head of Federal Financial Supervisory Authority (BaFin), who said he would pursue an agenda to bolster supervision amid criticisms.

BaFin’s reputation came under the spotlight after Wirecard, a major payments company, collapsed last year. Such controversy significantly affected the election campaign of Olaf Scholz, the German Finance Minister. On our humble, yet professional, opinion, such regulations will only benefit the European crypto-market, as the more secure they become - the more developed they may be, which will have positive effect on a business atmosphere and make the cryptocurrencies more attracting for the citizens of European Union.

For those interested in starting a business related to crypto-activities, our team of professionals can offer a variety of working decisions. For example, the current hot-potato for those seeking to obtain a crypto-license, is Lithuanian Crypto License, which we may assist with. In case of interest, feel free to contact out staff.

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