Authorization

Founders in the crypto industry often ask themselves whether it is still worth applying for a BaFin authorization according to the KWG or the WpIG prior to the MiCAR coming into force. In most cases, the answer is a clear “yes”.

In the future, crypto asset service providers in the EU will have to obtain an authorization for their business in accordance with MiCAR. However, there are exceptions in this respect for banks and investment firms. The situation is somewhat more problematic for German crypto custodians.

Under the new MiCAR, crypto-asset service providers will in future have to obtain regulatory authorization before they are allowed to operate in the EU. What will be the requirements for a successful MiCAR authorization application?

The text for the Markets in Crypto Assets Regulation (MiCAR) has recently been finalized. As soon as the new regulation applies, the provision of crypto-asset services in the EU will be subject to authorization. But which activities does this actually affect exactly?

Last week, BaFin published its note concerning the authorization process for the operation of crypto security registries. This is a summary of the most important expectations of the authority.

Over the last couple of years crypto lending has become a popular method to generate passive income via DeFi. But can the participation in smart contract based crypto lending trigger obligations to obtain authorization for the participants?

Prior to start of operations in Germany most blockchain-based business models require BaFin authorization, because of the legal qualification of most cryptocurrencies as financial instruments in the sense of the German Banking Act (KWG). The German legislator explicitly confirmed his administrative practice of BaFin being in place already since 2011 by explicitly regulating crypto assets […]

In Germany, companies often require prior authorization from BaFin for commercial handling of cryptocurrencies if their offered services qualify as banking businesses or financial services. For example, the operation of an exchange platform, which enables users to trade cryptocurrencies will regularly qualify as a financial service, which is subject to authorization either because it qualifies […]

For several month now, projects that provide applications within the decentralized financial markets continue to gain in significance. The buzzword Decentralized Finance or its abbreviation DeFi relates to smart contract applications (DApps), which enable users to conduct business on the financial markets without the need of a central service provider. The most prominent examples are […]

Germany is taking on a special role in Europe and globally when it comes to blockchain regulation. The German Government decided last year that Germany would strive to become an internationally well-known hotspot for businesses with business models that are connected to or based on blockchain technology or cryptocurrencies. Germany tries to achieve this among […]