Federal Council published a German version of its position paper on token regulation. The revised version of the paper goes beyond the original version. We took a look at the new paper and reiterated the key points.
Since last summer, Lobbying wanted to influence policymaking in Blockchain applications and to improve the framework for the technology. In February, shortly after the coalition agreement was signed, the position paper on token regulation appeared in the English version.
Now there is position paper also in German. New version has also been extended by a few points that have been added over the last two months. Explicitly, the paper also contains recommendations for action by German politicians and regulators.
New version is structured a bit differently than the old one. The essential topics have remained the same. All aspects of buying and selling tokens should be viewed and analyzed from a legal perspective. The basis for this is EU law, which is generally applied to regulation. Only in special cases, reference is made to deviating national law.
Tokens as securities
To get an overview, the paper gives an insight into the current regulatory framework for crypto assets first. In addition to the basic description of tokens as new financing mechanisms, the categorization of tokens is particularly relevant. The official classification therefore knows “crypto currency tokens”, “utility tokens” and “security tokens”.
Subsequently, the general definition of securities is defined according to European capital markets law. Crypto currencies are largely classified as securities in Europe, so it is important to properly define the concept of the security.
In the main section, the paper deals with the regulation of tokens from the point of view of publishers and investors – with both parties having to be aware of different things. While the token issuers must pay particular attention to consumer protection aspects, the legislation on securities trading is relevant for investors. Finally, it’s about token-related services.
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