Since June 2021, a new law – the German Electronic Securities Law (eWpG)- allows for electronic securities. Whereas former securities had to be issued in the form of a certificate, new securities can be issued by electronic means only. These electronic securities can even be registered by means of a distributed ledger in a crypto securities register.
However, for consumer protection reasons and smooth transactions, the task of keeping the crypto securities register is a regulated activity under the German Banking Act (KWG) supervised by the German Federal Supervisory Authority (BaFin). If the issuer does not designate a registrar, the issuer itself is in charge as registrar entity.
New crypto registers have to be notified to Bafin which will keep a list of all crypto securities. This list of crypto securities was published for the first time this week by BaFin.
The Electronic Securities Law applies for the moment only on bearer bonds.
