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Germany’s new government is said to have brought up cryptocurrency within its coalition agreement, promoting a level playing field between business structures that are deemed innovative and the conventional finance landscape.
Reports noted that three German political collectives are now in unison to this “coalition deal” this week as the political parties of Free Democrats (FDP), the leftist Social Democrats (SDP), and the Green Party are all set to take over and regulate beginning next month.
If the agreement in question – that was issued on November 24 is anything to go by, the alliance is calling for a fresh dynamic that is connected to the opportunities and risks coming from the latest financial innovations like businesses linked to the blockchain and crypto-assets.
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It was also noted on the agreement that the partnership requires a so-called joint European supervision intended for the sector of cryptocurrency.
Furthermore, it also stated that the supervisory authority of the European Union should not just safeguard the conventional finance sector, but also avert the exploitation of cryptocurrency values such as the funding of terrorist entities and money laundering.
It was learned that the team-up of Germany’s three political groups took a couple of months of talks right after the country’s federal election that took place on September 26 of this year. For the uninitiated, this marks Angela Merkel’s 16-year rule in the European state as she will be replaced by Olaf Scholz from the Social Democratic Party of Germany.
Flourishing crypto in EU
Meanwhile, the European Council which counsels the European Union’s political narrative – has reportedly adopted a couple of proposals namely the “Digital Operational Resilience Act” (DORA) and “Regulation on Markets in Crypto Assets” (MiCA).
The latter is said to be initially prepared in September of 2020 by the European Commission as it focuses on the creation of a regulatory framework that is intended for the market related to crypto-assets that backs innovation and draws on the opportunities that are carried by these crypto-assets. Provided that such a proposal is approved by the European Parliament, this will put issuers of crypto-assets to stricter requisites. However, it was pointed out that nonfungible tokens (NFTs) alongside utility tokens will be outside the reach of such a ruling.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
