Germany to Become “Hub” for Financial Startups

The German authorities drafted a new bill that creates more favorable conditions to attract FinTech startups in the country and provides the possibility of issuing securities on a blockchain.

Highlights

• Germany is developing more lenient rules for financial innovation startups as part of the Future Finance Act.
• The new bill envisions capital markets digitalization through the issuance of electronic securities on a blockchain.
• New rules will apply to companies with fewer than 500 employees and revenues below €100 million per year.
• Germany is recognized as the most crypto-friendly country, and the German tax policy in relation to cryptocurrency assets is one of the most loyal in the world.
• The initiative is designed to improve access to the capital market for innovative startups and thus make it easier to attract investments, says Christian Lindner, the German Federal Minister of Finance.
• The bill also envisions investments by institutional investors in startups and small and medium-sized enterprises.

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