Digital Identities Report

On 23 February, Germany heads to the polls to elect a new parliament. This election marks a pivotal moment for Germany and Europe to define their role as a global leader in the crypto industry and blockchain as a transformative key technology.

In collaboration with Greenfield, Germany’s largest crypto investment firm, we have developed a position paper outlining the key levers needed to foster innovation-friendly policies and provide regulatory clarity for entrepreneurs, users, and investors alike.

The position paper serves as a starting point for dialogue with political parties and thought leaders on their potential policy approaches to the crypto space.

TL;DR: Key Highlights of the Position Paper

1. Decentralized Finance (DeFi): Embrace MiCAR’s exclusion of DeFi and lead in developing moderate, innovation-friendly regulations—or opt for a deliberate non-regulation stance to encourage experimentation.
2. Decentralized Autonomous Organizations (DAOs): Establish a clear legal framework to limit token-holder liability and remove ambiguity around DAO classifications.
3. Data Protection: Develop privacy-compliant blockchain solutions for applications like salary payments, healthcare, and AI while balancing AML/ATF requirements.
4. Supervision: Increase resources at BaFin, creating a mandate to promote Germany as a financial hub, and driving toward a suportive stance on digital assets.
5. Funding: Provide targeted programs to support crypto startups.
6. Taxes: Clarify and modernize taxation for token issuance, utility tokens, and crypto transactions, ensuring they are internationally competitive.

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We believe this dialogue is essential to ensuring that Germany does not miss its "second digital chance" to lead in blockchain and crypto. By engaging with political stakeholders, regulatory bodies, and opinion leaders, we aim to build momentum around a shared vision for a thriving crypto ecosystem. The position paper, available in German here, serves as the foundation for these discussions and reflects our commitment to collaborating on forward-looking policies that benefit all stakeholders.

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About Areta‍

Areta is a global financial services firm specializing in the blockchain and digital assets economy. Headquartered in Germany, the company provides independent services for web3 organizations across mergers & acquisitions, capital markets, and decentralized governance.

About Greenfiled Capital‍

Greenfield Capital is a European crypto investment firm that backs developer teams buildingtoward an open, decentralized, and more robust architecture of tomorrow’s web. Founded by Sebastian Blum and Jascha Samadi in 2018, Greenfield provides funding and support inoperations (e.g., running infrastructure for networks and protocols in-house, providing liquidity, participation in governance etc).

Having delivered superior capital returns with their I. and II. crypto fund, Greenfield initiated 2021 its III. crypto fund, one of the largest funds dedicated to crypto in Europe (€135M). Greenfield’s portfolio includes 1inch, Sovryn, Gattaca, Arweave, NEAR, Safe, DRESSX, Panoptic and Layer3 among others.

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Contact:

Areta: Karl-Martin Ahrend, Founding Partner

Greenfield Capital: Christian Zimmermann, Partner & Chief Legal Officer