In Europe, Germany is certainly one of the most accessible states for crypto firms. The country seems to want to maintain this momentum by implementing measures conducive to better penetration of technology start-ups.
Regulation more open to financial innovations like cryptos
Germany is expected to maintain its status as the most crypto-friendly country. This is what can be deduced from a recent government announcement. On Wednesday 5 April, the German Ministry of Finance presented his new bill named “Future Finance Act”.
The initiative relies globally on the implementation of incentive measures for start-ups. It is the emerging firms whose innovation is their core business that are specifically targeted by the bill. If the latter is adopted, these startups should benefit from a business environment particularly in Germany.
Indeed, the proposed law provides for a reduction in the minimum market capital for initial public offerings (IPOs). This element, decisive for firms considering a listing on the stock exchange, is reduced to 1 million euros (1.1 million dollars). It is 1.25 million euros ($1.37 million) currently.
For fallout on the German financial system
Another major thrust of the bill is to create legal and fiscal conditions for investors in order to attract them. To achieve this, the authorities want, through this legal arsenal, to facilitate the investments of institutional players in start-ups.
The government hopes to see the “Germany’s capital market become more modern and efficient in order to mobilize more private capital for future investment.” The ultimate goal is to encourage a culture of stock market investment.
“We want to make Germany the leading host country for start-ups and growing companies. This is why we are improving access to the capital market and facilitating fundraising. Small and medium-sized businesses will also benefit. Startups, growing companies and small and medium enterprises should have easier access to the capital market” German Finance Minister Christian Lindner said in a statement.
It should be noted that the new law envisaged by the German authorities is not unrelated to its initiatives within the framework of the G20. For some time, the latter has been working to adopt a common regulation on cryptos.
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