PayTechTalk #56 – Custody of Digital Assets

PayTechTalk #56 again represents a very special episode. In this episode we will discuss with four renowned Blockchain experts: Tim Kreutzmann, Prof. Dr. Florian Möslein, Alireza Siadat and Kurt Zeimers. The podcast is dedicated to the custody of digital assets in consideration of the draft bill for a law on the introduction of electronic securities (draft bill) and the Markets in Crypto Assets Regulation (MiCAR).

Table of Contents

Draft bill for a law on electronic securities

With the draft bill, the German legislator has reached a further milestone for the implementation of the German Blockchain Strategy. In the future, it should be possible to trade (initially only) bearer bonds completely digitally. To this end, electronic securities are to be put on an equal footing with certificates and the transfer of ownership as well as acquisition in good faith through the register is to be made possible.

The draft bill now provides further clarification regarding the custody of crypto assets. For example, institutions with a license for the custody business will in future be allowed to offer the custody of private keys (as an annex service) without additional license for the crypto custody business. In addition to the crypto custodian, the regulated crypto securities register keeper will be required in future. The details of the register keeper will be specified in the course of the further legislative procedure.

The relationship to MiCAR

In the European context, it remains to be seen whether the German domestic crypto regulation will remain after the now known leak of a draft of MiCAR. MiCAR should be officially presented in October this year in the first draft. However, it is already known that MiCAR will regulate crypto assets and services with crypto assets harmonized and directly binding for the member states of the EEA. Besides the MiCAR there should be no room for specific regulation. However, we have to wait to see whether the draft bill will be accepted in its current wording. Because as well known no law comes out such a way from the Bundestag as it goes in.

The Podcast is in German.

Further information and links:

Law on the introduction of electronic securities: https://www.bmjv.de/SharedDocs/Gesetzgebungsverfahren/DE/Einfuehrung_elektr_Wertpapiere.html
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on Markets in Crypto-assets (MiCA): https://www.politico.eu/wp-content/uploads/2020/09/CLEAN-COM-Draft-Regulation-Markets-in-Crypto-Assets.pdfhttps://paytechlaw.com/wp-content/uploads/CLEAN-COM-Draft-Regulation-Markets-in-Crypto-Assets.pdf

About Tim Kreutzmann

Tim Kreutzmann is Department Director – Legal / Vice President – Legal at BVI Bundesverband Investment und Asset Management e.V. He leads the BVI working group on tokenization and represents the interests of the BVI members in digitization issues..

Tim on LinkedIn: https://www.linkedin.com/in/tim-kreutzmann/

About Prof. Dr. Florian Möslein

Florian Möslein is Professor at the Philipps University of Marburg, Co-Head of the Institute for the Law of Digitization and Deputy Head of the Hessian Competence Center for Responsible Digitization. In German jurisprudence, Prof. Möslein is a well-known expert for digitization and Blockchain issues.

Florian on LinkedIn: https://www.linkedin.com/in/florian-möslein-795b662/

About Kurt Zeimers

Kurt Zeimers has been with BNP Paribas Securities Services for over 23 years in asset management (global custody, depositary, fund administration, middle office and fund distribution). He is a recognized expert for digital assets, in particular for security tokens on the Blockchain, for regulation and market insights.