Date: 01.09.2022Security Tokens:
The term “security token”, or “investment token” or “asset token”, is used to summarise those tokens whose characteristics are similar to those of traditional financial instruments such as shares, debt instruments or shares of investment funds.
Due to their comparability with traditional financial instruments, such security tokens are often also classified as regulated financial instruments (“substance over form”). Security tokens are tokens that embody rights that are the same as or comparable to conventional securities, for example. Rights comparable to securities is understood to mean membership rights or contractual claims involving assets, similar to the rights associated with shares or debt instruments. Such tokens then generally constitute securities within the meaning of Regulation (EU) 2017/1129 (EU Prospectus Regulation), the German Securities Prospectus Act (Wertpapierprospektgesetz – WpPG) and the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG) or financial instruments within the meaning of the German Banking Act (Kreditwesengesetz – KWG) and the German Investment Firm Act (Wertpapierinstitutsgesetz – WpIG).
