After letting its crypto and blockchain ecosystem exist without regulations for over a decade, German authorities are finally looking to call the new industry to order.
According to Reuters, the German government has opened a consultation process requiring input from companies carrying out cryptocurrency and blockchain related business within its territory.
The input from these participants will help the government come up with ideas on how to tap into blockchain technology in the summer, while possibly serving as the first step to regulating the space.
The report acknowledges that over 170 crypto and blockchain related business are based in Germany’s capital, Berlin with many working on use cases of the innovative technology for pharmaceuticals, cars, public administration, and many others.
These startups have told the government to help clear the barrier to entry for new clients and investors. In a sense, they called on the government to establish a legal framework for the industry instead of only warning citizens to exercise caution when dealing with cryptocurrencies.
With the inputs now expected later in the week, it would be interesting to see whether Germany would push to regulate what may likely become an integral part of its robust economy.
If Germany were to create a regulatory framework soon, then the nation will become one of the first major European countries to do so.
Other smaller jurisdictions such as Malta, Belarus, Gibraltar, and Switzerland have already provided regulations for the new industry and are leading the race for blockchain supremacy in the continent.
A serene regulatory environment encourages the teeming population of blockchain startups to set up in the region, which in turn results in a boost to a country’s economy and protect investors.
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