Virtual securities surprise: A draft bill of the Federal Ministry of Finance and Justice caused a lot of excitement and euphoria this week.
According to the new law, it should be possible in future to issue securities without having to physically deposit them. In addition, electronic securities would in future be regarded as objects, meaning that they would be under the same property protection as traditional securities.
Such a modernization could strengthen Germany as a business location and provide for more transparency.
It is also relevant that specifications for individual register techniques for electronic securities registers were deliberately omitted. Without this legal barrier, the “competition between innovative technical solutions should be fired up”. Accordingly, the safekeeping of crypto-securities is no longer necessarily reserved for Clearstream, the current monopolist.