og.15363 1913 Get your Crypto Funds in Germany!

Get your Crypto Funds in Germany!

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– Germany has introduced a new regulation on crypto fund units (Verordnung ber Kryptofondsanteile KryptoFAV), that allows fund managers to issue fund units on an electronic instead of a physical basis.

– The new regulation on crypto fund units allows fund managers to issue units in common funds (Sondervermgen) or individual unit classes also as crypto fund units.

– Crypto fund units are defined as electronic fund certificates (elektronische Anteilscheine) that are registered in a crypto securities register (Section 1 Sentence 2 KryptoFAV).

– A central element of the eWpG is the admission of digital securities, for which the paper document requirement no longer applies. Instead, they are entered into an electronic securities register. A special form of this register is the crypto securities register.

– So far, BaFin has granted only four such authorizations. Hence, there remains great potential for young, innovative companies.

– The new opportunities opened up by the KryptoFAV also pose challenges for fund managers. For example, the depositary still has a gatekeeper position.

– In August 2021, Germany enacted a law to strengthen the nations reputation as a location for investment funds (German Fund Location Act). It allows certain domestic special funds a type of fund vehicle especially used by institutional investors to invest up to 20% of their assets in crypto assets.

– Crypto assets, in the meaning of the German law, are defined as:

– Digital representations of value, that;

– Are not issued or guaranteed by a central bank or a public authority; and

– Do not have the legal status of currency or money; but

– Are accepted by natural or legal persons; Based on agreement or actual practice; As a means of exchange or payment; or Are used for investment purposes; and

– Can be transferred, stored and traded by electronic means.



og.15363 1913 Get your Crypto Funds in Germany!
Get your Crypto Funds in Germany! 3

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