The new Future Finance Act, a new German law, plans to introduce several key initiatives for the crypto industry, including issuing electronic shares on blockchain.
The Finance Ministry of Germany proposed a new law for benefitting startups with various key proposals. The German law named the ‘Future Finance Act’ aims to bring financial innovation to the country through startups and has several facets of crypto imbibed in it.
The German law mainly proposes to issue electronic shares on blockchains and ensure the digitalization of crypto markets. The improved portability of crypto assets could also lead to the same. The bill specifically states that the capital markets would need to become more efficient to ensure that more private capital comes in for future investments. Thus, the German law would likely benefit crypto firms, with those working on projects connected to blockchain in finance benefiting the most.
“We want to make Germany the leading location for startups and growth companies,” said the Finance Minister of Germany, Christian Lindner, who further added, “That is why we are improving access to the capital market and making it easier to raise equity. Small and medium-sized companies will also benefit from this.” The Future Finance Act would apply to companies employing up to 500 people and having less than 100 million Euros in revenue.
Amongst its other proposals, the law aims to decrease the minimum market capital for initial public offerings and improve the funding prospects for startups in the technology space. A member of the G7, Germany has been a public proponent of positive crypto regulation and incentives to make the country a crypto and blockchain hub.