Association of German Private Banks foresees that a need for new regulation may arise from the emergence of DLT-based securities

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.

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, “adaptations of civil and regulatory requirements at national and European level may be necessary.”

Recently, the German Federal Ministry of Finance also published a key issues paper on the treatment and regulation of blockchain-based securities.

Also read: Stock market operator Bolsas y Mercados Españoles has completed its first Blockchain pilot for electronic certificates of collateral pledges

Source: https://cointelegraph.com/news/german-bank-association-new-regulation-for-dlt-based-securities-may-be-necessary