The legislation states that all-electronic securities can legally be recorded using blockchain technology in lieu of paper-based certificates, lifting administrative burdens for security holders and issuers. This move comes as a part of the nation’s blockchain strategy, citing the German finance ministry.
It’s been almost 2 years since the first calls from the German Ministry of Finance to consider blockchain-based securities as a legitimate form of digital financial instruments in March 2019, according to Coindesk, to get this legislation approved.
Lition has taken the role of a Government consultant while advising Senator Thomas Heilmann, a member of the Christian Democratic Union (CDU) — Germany’s ruling political party on the legislative process. According to Dr. Richard Lohwasser — Advisor for Lition Blockchain, dealing with security tokens in Europe can be seen as a whole range of problems without comprehensive regulation. The new law is designed to close most of the loopholes such as how holding a token doesn’t mean holding equity from a legal standpoint, dividend payments are not legally compliant, and if a token gets sold, the buyer doesn’t acquire legal rights to receive dividends.
Germany’s federal government has taken a further step towards developing a legal framework for blockchain to fully unleash its potential, expanding into new areas of opportunity for blockchain businesses and consumers.
Recently, TomoChain partnered with the Vietnam Ministry of Education and Training to secure recognized diplomas and certificates on the TomoChain Public Blockchain. 2 weeks later, the Vietnamese Prime Minister Nguyen Xuan Phuc announced blockchain technology as one of the key technology innovations that will be prioritized in Vietnam.
With positive moves from the Vietnamese and German governments towards blockchain technology applications in the education and financial sectors, TomoChain and Lition are evermore confident towards providing the most advanced blockchain technologies to serve large institutions like banks and governments.These new legislations are prime examples, at the government level, of blockchain’s global value to store data transparently and securely. Potential opportunities are waiting and we’ve never been more ready!