In the future, the Markets in Crypto Assets Regulation (MiCAR) will require European operators of crypto custody services to take strict security precautions when holding their clients’ crypto assets. In particular, crypto custodians will be legally required to strictly separate client assets from their own holdings in order to ensure that client assets are available in the event of insolvency. Even though the draft bill for the German government’s Future Financing Act already provides for similar obligations for crypto custodians, the currently applicable German insolvency law does not yet provide a legal basis for segregating customer crypto assets in the event of insolvency.
FIN LAW, together with Frankfurt-based x-markets consulting, has now prepared a paper on the most important aspects in this field, which informs crypto custodians about possibilities to ensure the best possible legal protection of their clients’ crypto assets already now, while at the same time preparing themselves for the upcoming obligations under MiCAR.
You can access the paper via the button below: