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Nov 14, 2023

FIN LAW comments on the draft bill for the FinmadiG

FIN LAW comments on the draft bill for the FinmadiG

On 23 October 2023, the Federal Ministry of Finance (BMF) invited associations and experts from the German crypto industry to comment on its draft bill for a Financial Market Digitization Act (FinmadiG). In response to this invitation, FIN LAW lawyers Lutz Auffenberg, LL.M. (London) and Dr. Konrad Uhink commented on the planned introduction of a new Crypto Markets Supervision Act (KMAG) and on proposed amendments to the German Banking Act (KWG), which are intended to regulate the transition from the current national crypto regulation to the MiCAR regime. FIN LAW is particularly critical of the very short transition period of only until 31 December 2025 for crypto asset service providers operating on the basis of national BaFin licenses to obtain a MiCAR license. In addition, lawyer Lutz Auffenberg, LL.M. (London) and lawyer Dr. Konrad Uhink question the proposed terms “cryptographic instrument” and “qualified crypto custody”. While the term “cryptographic instrument” seems unnecessarily complicated in their view, the new financial service of qualified crypto custody must be clearly distinguished from crypto custody under MiCAR, as it relates exclusively to the custody of cryptographic instruments, while it does not entitle the custodian to safeguard crypto assets within the meaning of MiCAR. In this respect, it is not a qualified form of crypto custody, so that its designation as “qualified” is misleading.

The statement on the consultation of the BMF is available on the BMF website as well as via the button below.

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    May 25, 2023

    FIN LAW and x-markets Publish Paper on Client Crypto Asset Protection

    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:

    Paper on Client Asset Protection for Crypto

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      Apr 18, 2023

      WiWo Again Awards Lutz Auffenberg and FIN LAW

      The renowned German business journal Wirtschaftswoche (WiWo) again honors FIN LAW as a top law firm and our crypto lawyer Lutz Auffenberg as a top lawyer in 2023. Already last year, FIN LAW was awarded as a top law firm and attorney Lutz Auffenberg as a top lawyer in banking and finance law by Wirtschaftswoche. The award is based on a survey of more than 1,700 lawyers from 135 law firms by the Handelsblatt Research Institute. The colleagues were asked to name the most renowned law firms and lawyers in their field of law. The results of the survey were then reviewed and evaluated by a panel of experts. FIN LAW and attorney Lutz Auffenberg, who specializes in representing crypto asset service providers vis-à-vis BaFin in BaFin licensing procedures, are among the best addresses in Germany in the category of capital markets law, according to the Wirtschaftswoche results. The focus of FIN LAW’s capital markets law practice is on legal support for token sale events, namely the public offering of security tokens, other investment tokens and electronic securities under the Electronic Securities Act (eWpG). The advice ranges from basic legal clarification on the possibilities of issuing tokenized investment products to the drafting of token terms, conditions of sale and support in the preparation of required sales documents such as securities prospectuses and WIBs to representation in the subsequent approval procedures at BaFin. In total, 15 law firms and 26 highly recommended lawyers in capital markets law were awarded by the Handelsblatt Research Institute. We congratulate all other awarded law firms, colleagues and would like to express our sincere thanks for the great trust and appreciation of our work in the circle of German commercial law firms. We see the award not only as recognition for our contribution to the digitalization and tokenization of capital market products to date, but also as an incentive for the many exciting projects that we will have the privilege of providing legal support for in the future.

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        Apr 26, 2022

        Wirtschaftswoche Awards FIN LAW and Lutz Auffenberg

        In the current issue of the renowned German economics journal WirtschaftsWoche, FIN LAW and founding partner Lutz Auffenberg, LL.M. were named as Top Law Firm and Top Laywer 2022 in the field of banking and finance law. In total, 21 law firms and 35 colleagues were selected by WirtschaftsWoche. The identification of the award winners was made by the Handelsblatt Research Institute by interviewing more than 1,600 lawyers from 123 law firms.

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          Dec 27, 2021

          Who’s Who Legal Nomination for Lutz Auffenberg

          Who’s Who Legal (WWL) has nominated Attorney Lutz Auffenberg, LL.M. in the 2021 issue as one of the world’s leading practitioners in the field of Blockchain. Along with FIN LAW Partner Lutz Auffenberg only five other advisors have been nominated for the German jurisdiction. The determination of the leading practitioners resulted from a comprehensive market analysis and interviews of WWL’s editorial office with the market participants as well as lawyers advising in the field of Blockchain law.

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