Electronic securities under the eWpG
Electronic securities in general
Provisions relating to electronic securities are set out in the German Electronic Securities Act (”eWpG“) which was published on June 03, 2021. The design requirements were further specified by the Ordinance on Requirements for Electronic Securities Registers (”EWPRV“) from October 24, 2022.
According to eWpG, an electronic security is a security which, instead of issuing a securities certificate, is entered in an electronic securities register. This electronic securities register can take the form of either a central register or the form of a crypto securities register.
The eWpG's initial focus was on bearer bonds, but the eWpG was extended on June 03, 2022 by the German Ordinance on Crypto Fund Shares (”KyptoFAV“) which included crypto fund shares.
In addition, the current version of the German Future Financing Act (”ZuFinG“) also plans to add shares to the eWpG in the future.
Product groups by type of legal regulation
Central registers vs. Cryptovalue paper register
Central registers (§12 eWpG)
Definition of register type:
Central registers are used for central registration and publicity of central register securities
Classification of securities:
Central Register Securities
Possible types of securities:
bearer bonds, and probably registered shares and bearer shares in the future
Required licenses:
Central securities depository or custodian bank license
Tradability:
OTC, as well as stock exchange trading if the registrar is a central securities depository
Register-managing body:
Central Securities Depository or Depositary
Reporting:
Interested parties must be allowed access to the register
Cryptocurrency register (§16 eWpG)
Definition of register type:
A crypto securities registry must be kept on a tamper-proof recording system in which data is logged in time sequence and stored in a protected manner against unauthorised deletion and subsequent alteration
Classification of securities:
cryptosecurity
Possible types of securities:
Bearer bonds, crypto fund shares and probably registered shares in the future
Required licenses:
crypto securities registry manager
Tradability:
OTC
Register-managing body:
crypto securities registry manager
Reporting:
In addition to inspection rights, reporting requirements for investors and registration in the Federal Gazette
Central registers vs. crypto securities registers
How do we support you?
FinPlanet is your one-stop shop for eWpG and crypto securities!
We provide you with full support, from an initial assessment to potential approval procedures. In particular, our advice includes the following services:
- Assistance in analysing your advantages and disadvantages of using electronic securities;
- Workshops;
- Suppirt with license applications;
- Review and optimization of your internal processes with regard to requirements;
- Support for new product processes in accordance with the German MaRisk AT 8.1 (”NPP“);
- Development of a target operating model;
- Evaluation of the appropriate type of register based on your business model;
- Adjustments of your written regulations and guidelines;
- Assistance in the selection of service providers;
- Project management;
- And many more...