The German government is pushing for more welcoming regulations for the country's financially innovative start-ups under the newly drafted "Future Finance Act" legislation introduced by the finance ministry on April 5.
The main goals of the legislation include the digitization of capital markets through the issuance of electronic securities on the blockchain, as well as increasing the portability of crypto assets. According to a translation of the draft bill, Germany's "capital markets should become more modern and efficient in order to mobilize more private capital for future investments." One of the government's goals is to create a favorable environment for start-ups and investors in the country. The legislation reduces the minimum market capitalization for initial public offerings (IPOs) from 1.25 million euros ($1.37 million) to 1 million euros ($1.1 million) and facilitates institutional players for start-ups, small businesses and special purpose acquisition companies (SPACs). SPAC) investments.
The new rules will apply to businesses with up to 500 employees and revenues of less than 100 million euros ($109 million), according to local media reports.
German Finance Minister Christian Lindner said in a statement: "We want to make Germany a leading location for start-ups and growth companies. That's why we are improving access to capital markets and making raising equity Easier. SMEs - big companies will benefit too." The government claims the move will make Germany more attractive to investors and boost a stock market investment culture. "Start-ups, growth companies and SMEs should have easier access to capital markets," the minister said. Germany is a member of the G7, the seven largest democracies in the world. G7 members are working together to create stricter encryption regulations, which many in the industry believe could hinder innovation and growth. The G7's new agenda is expected to be unveiled at its next meeting in Hiroshima, Japan, scheduled for May.
