The harmonization of the capital markets enables European security emitters to offer their securities EEA-wide as long as they conduct a notification procedure. This is due to the EU Prospectus Directive. But can this advantage be transferred to security token offerings?
The approval of sales prospectuses for tokenized financial instruments is no longer an obstacle for STO projects. But who is actually legally allowed to carry out the distribution of security tokens in Germany?
The German Federal Government plans the introduction of digital debenture bonds this year. Why is the change in legislation needed as security token offerings have already been approved and conducted in Germany? What are the potential changes that emitters of security tokens can expect from the introduction of digital securities?
Traditionally securities are stored and managed by authorized securities depository banks in Germany. How can security tokens that are legally designed as securities be stored and managed in the future and what are the consequences of the upcoming legislative changes of the German Banking Act for securities depository banks?
BaFin generally qualifies security tokens as securities sui generis. Does that exclude the possibility of designing security tokens as asset investments under the German Asset Investments Act and if not, what are the advantages of crypto based asset investments for the issuer and distributers?
It can be read in many publications that the German Debenture Bond Act would not be applicable to bonds based on security tokens instead of paper documents. But is this really the case and why is this qustion of importance to security token issuers?