Blockchain Federation: position paper on the regulation of token – Florian Glatz read
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of the Blockchain Association published last Friday a position paper on the token- Regulation . is the current level of regulation is of tokens and Kryptowährungen under EU law and, if analyzed from deviant – German law. Among other things we talked with Florian Glatz, the President of the Federation.
Hi Florian. The Blockchain Association has to celebrate some success in recent weeks. What happened?
In fact, the Association could hit some important pegs in the ground shortly after its founding what affects the perception of Blockchain technology from a perspective. The now following use, design and also regulation of the technology and its various applications, we can already observe is associated.
Initially the CDU, CSU and SPD have approached Coalition paper of the Blockchain in a kind and way in the which the unmistakable signature of our just in time for the beginning of coalition talks of published position paper  exhibit . Most of the core demands were recorded in the Coalition paper, including an education offensive in the area of Blockchain, an active testing of application possibilities in the eGovernment sector, an ambitious review of existing and future legislation the aspect of the digital capability and an innovation-friendly regulatory framework, which creates legal certainty, where it is used by the market participants there.
In addition to this great success, which shows how well the Association has established itself since its inception in the political landscape, our working groups of the Association do all work to identify domain-specific regulatory hurdles and future concepts.
At a parliamentary breakfast we could the first catalogue of core demands our corporate law – working group on the topic “Digital company law” with important decision makers in the Parliament, the appropriate committees and various ministries place. In parts of claims were picked up from this in the Coalition paper, as far as it concerns the abolition of formal requirements that hinder a fully digital communications.
A few days ago, our finance working group has now released a paper token regulation. The Association a detailed and comprehensive analysis of the “token economy” there from for the first time, which has emerged in the context of ICOs and other token-based business models in recent years and is currently the subject of controversial discussions in economy and society is.
In what area is of the greatest need for action regarding the regulation of crypto your opinion?
Basically, the market needs more regulatory clarity when navigating around one ICO / TGE. We primarily see action at European and global level, where through the creation of more legal security could be created by minimum standards in one fell swoop. Also, the traditional financial sector needs assistance when he because to connect in a productive way with the new Kryptosektor, which will be a big trend in our opinion in the next few years.
In the position paper, you examined the current legal status of token under European and German law. Can be a big difference between these two, overlapping law found?
No, it’s more like that German law defined the European right and sets out. Basically we see needs to be clarified in the qualification of so-called utility token under the existing laws to securities trading on European and German level. Then these definitions need to with our American colleagues transatlantic be matched and unified because the token economy has known no limits. For this purpose we call for the creation of international conventions.
When the subject token regulation you assumes essentially that token as securities be treated. What are the essential differences between Kryptowährungen and classic securities?
no, I would not say so. We draw a very clear line between security tokens and token of the utility. Security tokens are those in function (if not in form) a sufficient overlap with the characteristics of regulated securities, or English just “securities”, exhibit. Of course, there is still need to clarify interpretation of undefined legal terms. This is normal when a new matter and task formerly the courts and executive authorities.
Utility tokens, which have no sufficient overlap with the requirements of a security (the detailed conditions see our paper ), however, are regulated under the German regime. However, apply plenty of diligence and information requirements from other slave laws in the area of E-Commerce, consumer protection and financial services.
Other aspects on the topic of ICOs, including from investor point of view, I have my new book in an essay in “legal guide legal tech” described.
The new coalition agreement generally positive and a step in the right direction was perceived by the Blockchain Association. How do you judge your chances of helping shape the future Blockchain policy of the Federal Government?
The Association will continue to play its role to act as communication organ of the community in the direction of policy. In addition, we want to start this year to support pilot projects of the State. As President of the Association on the one hand and spokesman of the pilot projects on the other hand, working group I develop concrete use cases together with politics, authorities and the community for Blockchain in public administration. We are confident that Germany global leaders in the area of Blockchain, e-Government and digital identities will be one which in a few years one.