The German legislator intends to also extend the crypto custody business with the introduction of crypto securities. What does crypto custody business consist of in the future, what will be permitted and what will be prohibited?
While the custody of traditional securities always requires a depository bank, security tokens can be taken into custody by crypto custody service providers or they can even be held in custody by the investor himself. What are the advantages of digital custody?
The new legislative draft for the introduction of electronic securities differentiates between electronic securities and crypto securities. What will be the differences between these two forms of digital securities?
The implementation of an acceptance feature in a security token ensures that the token and the associated investor rights can be transferred to the purchaser on the secondary market. How exactly does the acceptance feature work and why is it so important for over-the-counter trading of security tokens?
The Capital Markets Union removes obstacles within the European capital markets. STO issuers can freely chose the country in which they want their security prospectus to be approved. But which supervisory authority is the best choice and what are the criteria to be considered for the selection?
It is of utmost importance for issuers of security tokens to know when they are legally allowed to start marketing their token sale. The European Prospectus Regulation and the German Security Prospectus Act allow marketing activities prior to the approval of the prospectus as long as certain obligations for the protection of investors are observed.
Already since the beginning of the legislative process of introducing crypto custodian services into the German Banking Act (KWG) it was uncertain if these new financial service providers could safeguard security tokens, meaning digital securities, for their customers. BaFin finally answered that question in its new leaflet.
More and more tokenization projects for investment purposes are realized, but this does not always have to happen in the form of tokenized participation rights. In today’s blog article, FIN LAW comes up with an overview of the current possibilities for the tokenization of financial instruments.