The German Government Seeks the Blockchain Community’s Input on new Laws
While the German government is preparing for a strategy presentation this summer, they have also sought the consultation of the blockchain community, reported February 18, 2019.
As time goes on, more and more governments have adopted the use of blockchain in transportation, tax collection, and so on. There has also been an increase in blockchain-related regulations that have helped to bring some order to the industry.
Now, it has been reported on February 18, 2019, that the German government is seeking the input of those in the blockchain community. According to the reports, the consultations are to help determine the potential behind the innovation ahead of a strategy presentation this summer.
From this week going forward, the firms involved will be able to give their recommendations to the German government, though it is unknown just how many of those recommendations will translate into regulations.
Err On the Side of Caution
It comes as no great surprise that the German government is looking into blockchain as the city of Berlin, in particular, has become a growing hub for blockchain business and is now home to over 170 of such firms.
It is notable, however, that the government is going directly to blockchain firms to get their input before creating new regulations. The forward-thinking government understands that crafting laws before understanding the complexities of how blockchain works could lead to disaster.
An example of this is the recently-passed law in Indonesia which requires traders to have capital of $70 million before they can begin trading in cryptocurrency futures. Another example is a recent case in Sweden where a man was asked to pay five times the amount of money he had made from cryptocurrencies trading in taxes.
In this case, the tax laws did not take the volatility of the crypto market into account and instead, treated it like regular income. By accepting input from the community, the German government can hopefully avoid such situations.
The blockchain startups in Germany have stated that a lack of regulation poses as an entry barrier into the industry and hope that this will be addressed soon.