With the establishment of digital securities, one of the central building blocks of the German government’s blockchain strategy, as well as the joint cornerstone paper of the BMF (Federal Ministry of Finance) and the BMJV (Federal Ministry of Justice and Consumer Protection) on electronic securities, will be implemented.
According to the current legal situation, financial instruments that are considered securities under civil law must be securitised in a certificate. The paper document is the connecting factor for the transfer of securities and it takes into account, among other things, the protection of potential purchasers. In order to ensure the marketability of securities and the legally secure acquisition, a suitable substitute for the paper document is required, e.g. through entry in a register-based on blockchain technology.
The eWpG also creates regulatory clarity: BaFin will supervise the provision of issuance and the keeping of decentralised registers as new financial services under the eWpG, the KWG and the Central Securities Depository Regulation. The draft distinguishes between the maintenance of a central electronic securities register by a central securities depository and the maintenance of registers for the issuance of electronic debt securities enabled by distributed ledger technologies, among others.
In this podcast, we go into the legal and technical particularities of the crypto securities register.
Enjoy the podcast!
More on Cashlink and Dorette Daume:
LinkedIn profile: Dorette Daume
More on the eWpG:
- Gesetz zur Einführung von elektronischen Wertpapieren – Bundesministerium der Justiz und für Verbraucherschutz
- Working Paper on Digital Ecosystem – Gesetz zur Einführung von elektronischen Wertpapieren
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