Representatives from the German Free Democratic Party (FDP) have bashed the nation’s monetary regulators for sleeping on the job. The members argued that the two groups have failed to set up a proper legal framework to govern blockchain applications.
The FDP Proposal Calls Blockchain ‘Tech of the Future’
The hearing was in response to an FDP proposal. It was held by the Finance Committee of the Bundestag. Members from business, regulatory and legal backgrounds attended the hearing.
According to the proposal,
The potential of blockchain technology can only be realized if there is legal certainty for its application and a workable legal framework for its use. The Federal Financial Supervisory Authority (BaFin) and the Federal Ministry of Finance have so far failed to develop competencies and make the necessary legal adjustments.
The people taking part in the discussion urged the lawmakers and industry leaders to create a good environment for blockchain applications to thrive. The proposal lauded crypto, noting that it is a positive thing. It called the blockchain ‘a technology of the future.’
A Rebuttal from the Regulator
During the hearing, Oliver Fußwinkel, a member of the BaFin’s innovation unit, said that the regulator has been working to create a good framework. He said that since he started engaging with Bitcoin in 2011, he has worked to solve the problems. It has kept up with new inventions in the industry.
However, other members of the forum did not share a similar opinion. Eric Romba, from the Lindenpartners law firm, stated that the said laws are still wanting. He added that blockchain specific laws might not be necessary. Despite that, the laws need to be refined to cover aspects like taxation.
BaFin, GDPR and Brain Drain
A lecturer at the Munich-based Ludwig Maximillian’s University, Mr. Martin Fries, said that the legal framework should be looked at, more closely. He said that the current law does not work in the context of the European GDPR laws. He added,
…Considerable tensions between the data protection law and the blockchain technology, which have just been largely harmonized in Europe…
The German Bundestag, in working with BaFin, will need to work together to solve this issue. Per to Martin Hauer and Antje Tillmann, who are the finance spokesmen for Union Party, the framework would be a much-needed intervention to the brain-drain of German experts.
Do you think the German parliament will pass better laws for Bitcoin and the blockchain tech? Let us know in the comments section below!