Crypto Custody

The commercial custody of financial products for customers has become a highly regulated and differentiated service with respect to German supervisory banking regulations. There are not less than three different kinds of custody businesses that are subject to authorization regulated in the German Banking Act (KWG): The depository business, which is qualified as a form […]

BaFin expressly stated in the publication on crypto custody business dated 2nd of March 2020 that it does not consider security tokens as securities in the sense of the German Securities Deposit Act under the current legal framework. This results in the fact that providers offering the custody of security tokens currently do not require […]

According to BaFin, over fifty potential service providers already informed the supervisory authority about their intention to apply for an authorization to conduct crypto custody services until the end of November 2020. Less than ten actual applications have been submitted to BaFin until now. Even though it can be assumed that some of those that […]

The custody of crypto assets in Germany is an activity which is subject to authorization since the beginning of the year 2020. Rumors have it, that over 40 companies are interested in obtaining an authorization from BaFin to conduct crypto custody business in Germany. The newly introduced legal basis is not only applicable to the […]

Last week BaFin published its long-awaited article concerning the AML obligations of financial service providers that intend to offer crypto custody services. The subject of crypto custody services therefore stays highly topical even during the corona crisis and BaFin continues its efforts to best inform the market participants with regards to the supervisory obligations of […]

Companies that offer their customers the storage of crypto assets and/or private keys that are used for the transfer of crypto assets had to notify BaFin of their intention to apply for authorization as a crypto custodian until the 31st of March 2020. Companies that used this option are now obliged to submit a complete […]

As of 2020 the German legislator is going to introduce crypto assets into the German Banking Act (KWG) as a new form of financial instruments and crypto custody services as a new form of financial service which is subject to authorization. Basis for these legal innovations is the amending directive to the fourth European Anti-Money […]

r authorization for the new financial service of crypto custody services. Several national and international market participants already display a keen interest in obtaining the authorization for said financial service. Even though it remains to be seen which companies actually apply for authorization and which of those applicants will be approved by BaFin, it nonetheless […]

With the year 2020, the new financial service of crypto custody business will be introduced in Germany. Custodians of crypto assets from then on can offer their services only if they acquired a BaFin authorization beforehand. Since the German legislator took his time with the new law and the exact requirements for a successful authorization […]

After a lengthy back and forth, the German legislator last week finally decided on how to conduct the transposition of the provisions of the 5th European AML Directive into national law. The German Parliament accepted the recommended resolution of the 7th financial committee after the original draft of the federal government was heavily criticized by […]

Security Tokens of German issuers so far have been issued solely as securities according to the German Securities Prospectus Act respectively the EU Prospectus Regulation. They are designed as identical and freely tradable blockchain tokens that grant its owners certain investor rights such as a return on investment and a repayment claim. Security tokens can […]

On 29th of July the German federal government resolved its draft proposal for the transposition of the provisions of the 5. European AML Directive into national law. It can be expected that this draft in its current form will be passed into law by the end of 2019. As of 1st of January 2020, crypto assets will be included […]