Germany is taking steps towards creating a crypto-friendly environment by introducing a new law that allows companies to issue crypto shares. The Future Financing Act aims to support private asset accumulation and mobilize private capital for future investments by reducing the minimum capital for IPOs to €1 million, enabling investments in small companies and startups. The law will make it possible for corporations to issue electronic or conventional shares that can be registered in the central register or on the blockchain, which is referred to as “crypto shares.” However, it is unclear whether crypto exchanges will be allowed to trade such shares. The move continues Germany’s trend of creating an enabling regulatory environment for cryptocurrency, making it the most crypto-friendly country in the world in 2022, according to CoinCub. The country also recently saw its second-largest stock exchange licensed by Germany’s Federal Financial Supervisory Authority to offer crypto custodial services.
In addition, blockchain companies are actively involved in the cryptocurrency market in Germany, with nearly 40% of companies in the country dealing with cryptocurrencies, according to an analysis of business model descriptions. Cryptocurrency companies in Germany are largely associated with financial services, with 37% of companies dealing with both cryptocurrencies and financial services. Blockchain companies in Germany mostly belong to the software industry group (64%), followed by financial services (52%), payments (38%), and information technology (36%). While these industry groups are expected due to the technical nature of blockchain technology, some blockchain companies are also expanding to other areas of the economy, such as commerce and shopping, real estate, and energy.
Most blockchain companies in Germany are start-ups, with around 59% of companies having less than ten employees. Only 6% of companies are mid-sized companies, while 3% of companies are larger companies with more than 250 employees. These companies are mostly offering blockchain-related services among other IT services. The acquisition of Bankhaus von der Heydt, one of the world’s oldest banks, by Bitcoin Group for approximately $15 million is also a significant move that highlights the country’s pro-crypto stance. The acquisition is expected to make Bitcoin Group the owner of two banking licenses in Germany, following its acquisition of Futurm digital bank.
In conclusion, Germany continues to create a regulatory environment that supports the growth of cryptocurrency and blockchain companies in the country. The introduction of the Future Financing Act, which allows companies to issue crypto shares, and the licensing of stock exchanges to offer crypto custodial services, highlights the country’s pro-crypto stance. With the majority of blockchain companies in Germany being start-ups and expanding to other sectors, the country is set to play a significant role in the growth of the blockchain and cryptocurrency industry.