Digital asset exchange Coinbase was reprimanded by German financial supervisory authority BaFin over corporate deficiencies, with the latter demanding the firm carry out organizational change.
In a recently published leaflet by BaFin, the regulator stated that the for application for licenses would close on June 10, 2022.
If approved, Commerzbank, which has over 18 million customers and around 70,000 institutional clients, aims to serve as a digital currency exchange by offering custody and trading services.
BaFin has announced that it’s investigating BitcoinWelt, a company that offers CFDs and forex trading services, which it said is not authorized in Germany.
A notice confirms that digital currency ATMs constitute banking business, meaning they fall within BaFin’s regulatory remit.
According to a statement accompanying the publication, the regulators consider digitized securities to be a core aspect of their blockchain strategy for Germany in the future.
Current rules in Germany require securities to be secured in a document, with a paper certificate a fundamental legal requirement. The use of blockchain for digital securities eliminates this need by recording the instrument to the blockchain, guaranteeing compliance and liquidity for digital instruments.
The regulators said that the new bill will also offer clarity, with the Federal Financial Supervisory Authority granted oversight as primary regulator for blockchain-based securities.
Known as BaFin, the regulator will oversee the issuance of certificates, as well as regulating the maintenance of ledgers in line with its obligations and powers under the Banking Act.
The move brings Germany into line with other countries worldwide, at a time of increasing global drive towards embracing digitized securities. In July, the U.S. joined the fray with its new Ethereum-powered fund for digitized Treasury securities.
Back in June, Tokai Tokyo Financial Holdings announced it was launching a digital securities exchange in Japan, which would allow the issuance and sale of digital securities on the blockchain.
Digitized securities are expected to play an increasingly mainstream role in finance in the future, with the technology introducing significant efficiency and cost savings compared to current methods of trading in securities.
With the German proposals now on the table, it looks set to become the next country to take steps to modernize its securities legislation.
" title="Germany proposes new bill for digitized securities" />The regulators consider digitized securities to be a core aspect of their blockchain strategy for Germany in the future.
Neufund, one of the pioneers in the securities tokens has called it quits despite achieving moderate success in the field. It blamed regulators for lack of guidance.
Bitcoin Exchange Traded Crypto will list on Deutsche Boerse’s Xetra market in Frankfurt.
German market regulator has warned the public against digital currency, stocks, forex and CFDs broker EasyTrade55 which it says isn’t licensed in Germany.
Germany’s financial market regulator has issued a cease order to KKT UG, a company that allows its clients to buy and sell cryptos and operates crypto ATM.
BaFin provides in-depth explanations of crypto custody as Germany advances crypto regulations.
As more industries continue to adopt blockchain and cryptos, authorities are striving to keep up with Belgium, Germany, Japan and more making moves this week.
