Medium sized businesses and startups may also be interested to procure funds via an STO. But the costs for security prospectuses are often way too high for issuances with a rather small volume. Security token offerings of up to 8 million euros in total volume can also be based on a three-page security information sheet. That way, the high costs for drawing up a full prospectus can be massively reduced.
Many STO issuers would like that their security token gets listed at a crypto exchange after the token sale is over. What are possible legal consequences of a security token listing and are there consequential obligations for the emitters?
BaFin will qualify security tokens as securities in the future already for the reason that their tradability on the capital markets is highly increased by their blockchain design. Does the authority go beyond it's competencies?