Germany's Federal Office for Migration and Refugees (BAFM) has found that blockchain has far-reaching potential to improve asylum procedures. Following a successfully completed proof-of-concept (PoC), the findings were published on March 26 in a white paper. The paper was edited by BAFM and authored by the Project Group Business & Information Systems Engineering of the Fraunhofer Institute for Applied Information Technology FIT. The PoC — undertaken by BAFM, Fraunhofer FIT and an unnamed technology partner in the first half of 2018 — focused on evaluating blockchain’s potential to support two crucial aspects of asylum procedures: the creation of reliable and …

The Association of German Private Banks (Bankenverband) foresees that a need for new regulation may arise from the emergence of distributed ledger technology (DLT)-based securities. The association expressed its concerns in a post on its official website on March 11, Cointelegraph auf Deutsche reported. Per the post, if securities are issued using new technologies, then there is a need for new safekeeping and settlements processes. According to Bankenverband, corporate actions and securities trading may also be subject to change because of DLT-based securities. The statement further explains that because of the changes that new technologies will create in business processes, …

German regulators and lawmakers have thus far failed to create a workable legal framework that would provide legal certainty for applications of blockchain technology, representatives from the country’s Free Democratic Party (FDP) have argued. An FDP proposal, entitled “Creating a Sustainable Framework for Distributed Ledger Technology in the Financial Market,” was put forward during a public hearing held by the Bundestag’s Finance Committee on March 11. The hearing gathered regulators, entrepreneurs, legal experts and others to respond to the FDP’s proposal, which argued for the importance of creating a legal and regulatory climate that would be conducive to the development …

Disclaimer: This article previously reported that the politicians’ statements were made during the public hearing at the Bundestag’s Finance Committee, rather than ahead of it. It has been redacted to reflect accurate timing. German parliamentary representatives have argued that the country’s blockchain strategy should include an appropriate legal framework for cryptocurrency trading and token issuance that would encourage the sector’s domestic development. The suggestion was put forward by the Union parties’ finance spokesperson Antje Tillmann and her colleague Matthias Hauer in a statement put forth ahead of a public hearing at the Bundestag’s Finance Committee on March 11. The scheduled …

Global market infrastructure provider Deutsche Borse Group, Swiss state-owned telecoms and ICT firm Swisscom, and Swiss and Singapore-based fintech company Sygnum have entered into a strategic partnership to build out a compliant financial market infrastructure for digital assets. The development was announced in a joint press release published on March 11. The new initiative will reportedly focus on creating a distributed ledger technology (DLT)-based ecosystem to support the nascent tokenized economy, which, the partners contend, “has the potential to reshape global financial markets.” The forthcoming ecosystem will reportedly span compliant digital asset issuance and custody solutions, as well as providing …

The German Federal Ministry of Finance has published a key issues paper on the treatment and regulation of blockchain-based securities, according to a ministry announcement on March 8. In the paper initially released on March 7, the regulator discusses the introduction of regulations for electronic securities and the issuance of crypto tokens. The document stipulates that the regulation of electronic securities should be technology-neutral, which means that they could be based on blockchain, or distributed ledger technology (DLT). The issuance of crypto tokens purportedly will not be subject to existing market regulations since crypto tokens do not represent securities, investment …

Germany’s justice and finance ministries have proposed to launch a state-run register to boost the use of blockchain, Reuters reports on Friday, March 8. According to the Reuters, the seven-page initial guidelines offer to create a register to regulate the sector and protect investors from possible abuses. The document reportedly states that regulation in the sphere could contribute to the development of the technology behind cryptocurrencies, along with enhancing Germany’s position in financial markets. The guidelines also propose easing existing requirements, which assume that financial instruments must have tangible counterparts that can be purchased by investors. Reuters claims that current …

German financial services company Commerzbank and securities marketplace Deutsche Boerse have completed a proof-of-concept (PoC) for a legally binding repo transaction using distributed ledger technology (DLT). The news was reported by Cointelegraph auf Deutsch on March 6. A repo transaction is commonly used for short-term borrowing, and allows dealers to sell securities to investors — often for as short a time as overnight — and repurchase them the following day, or as otherwise determined. For the party selling the security, the process is termed a repo, whereas for the counterparty, it is known as a reverse repurchase agreement. For the …

The chief executive body of the German government, the Cabinet of Germany, has revealed that the country’s blockchain strategy will be introduced by mid-2019. The Cabinet commented on the development of fintech in the country on Feb. 26, following a request for information from parliamentarians in the Bundestag. The document notes that fintech sandboxes are currently present in five member states of the European Union: Denmark, Lithuania, the Netherlands, Poland and the United Kingdom. The Cabinet states that they will undergo an online consultation process prior to introducing the blockchain strategy. Per the Cabinet, the Ministry of Finance and the …

German automobile brand Mercedes-Benz Car has developed a platform based on blockchain technology to increase transparency and sustainability in complex supply chains, according to press release published on Feb. 25. Mercedes-Benz, a division of Daimler AG, a German multinational automotive corporation, has partnered with United States-based software company Icertis for cooperating in the development of blockchain tech for supply chain use. Mercedes-Benz has announced that that they have jointly developed and programmed a prototype with Icertis based on blockchain technology that allows for the storage of documentations and contracts in complex supply chains. The project allows for the creation of …

Eurex, a Germany-based derivatives exchange operated by Deutsche Boerse, is reportedly planning to launch futures contracts tied to digital assets, financial technologies-focused news outlet The Block reported on Feb. 21. People familiar with the matter reportedly told the Block that Eurex is planning to launch futures contracts tied to such digital currencies as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), having already had meetings with market-making companies to discuss the products. Deutsche Boerse has reportedly been considering the introduction of digital currency futures since December, 2017. A spokesperson for the exchange then said that “we are thinking about futures, with …

German banking and financial services company Commerzbank and technology companies Continental and Siemens have jointly conducted a money market security transaction pilot using blockchain technology. Cointelegraph auf Deutsch reported on the development on Feb. 21. Money market securities are short-terms assets that serve for financing companies and usually have a maturity of one year or less. Usually, the processing of a payment takes two days due to a clearing process. The aforementioned parties “for the first time” conducted a blockchain-based money market security transaction worth 100,000 euro ($113,340) within a pilot project in January, where Continental acted as the issuer …