The Finance committee of Germany held a public hearing with the country’s political Free Democratic Party, discussing the proposal to create a regulatory framework for blockchain technology. The proposal entitled “Creating a Sustainable Framework for Distributed Ledger Technology in the Financial Market,” also discusses the government's failure to provide legal certainty for applications of blockchain technology.
The hearing gathered regulators, entrepreneurs, legal experts and others to respond to the FDP’s proposal, which argued for the importance of creating a legal and regulatory climate that would be conducive to the development of blockchain applications across the economy and public sector.
The proposal notably affirmed the positive potential of cryptocurrencies and initial coin offerings as a “flexible financing alternative for small and medium-sized enterprises.”
Characterizing blockchain as a “technology of the future,” the FDP’s proposal argued that a lack of legal clarity is hampering blockchain adoption and innovation, noting that:
Some lawyers and analysts have an opinion that blockchain regulation is not the utmost important element that could be turned into legislation. Eric Romba, from law firm Lindenpartners, affirms that there is a nonetheless a great need to provide more legal certainty for the blockchain space.
“The potential of blockchain technology can only be realized if there is legal certainty for its application and a workable legal framework for its use. The Federal Financial Supervisory Authority (BaFin) and the Federal Ministry of Finance have so far failed to develop competencies and make the necessary legal adjustments.”