The current regulation of the financial markets is carried out by supervising professional market participants. Can this regulatory approach ensure the effectiveness of the financial market regulation in times when decentralized markets without operators are on the rise?
Last week, retail investors caused headaches to hedge funds by massively investing in Gamestop shares. The cryptocurrency Dogecoin also has had massive price increases after calls to invest had been posted on internet forums. But can such a call-to-invest in shares or cryptocurrencies directed at the masses be a market manipulation?
The Crypto custody business has been introduced as a regulated financial service in Germany a little over a year ago. But even prior to BaFin issuing the first explicit authorization to the first provider, the German legislator already plans to change the legal definition of the activity again.
Systematic internalization affects Sellers of financial instruments which act outside of marketplaces and represents one of the four variants of proprietary trading that is subject to authorization. But can systematic internalization be applicable to trades of crypto assets as well?
Security information sheets for the offering of digital securities are intended to comprise up to four and not only three pages in the future. Anyhow, the additional space will have to be filled with additional required information.
Asset investments today are almost as strictly regulated as securities and therefore, this form of investment product gets chosen less and less. Can tokenization bring asset investments back into the game?
The German Banking Act as well as the current version of the draft legislation for the MiCA regulation both use and define the term crypto asset. But is the term used congruently or are there relevant differences?
Even if a token sale may in some cases not require a prospectus to be drafted and published from a supervisory point of view, because the tokens do not qualify as securities or asset investments, Whitepapers, marketing leaflets and handouts that are used for advertisement purposes may have liability consequences. What has to be observed and what are the possible liabilities?