Germany advances security tokens for large investors

The German security token offering platform (STO) Black Manta Capital Partners has partnered with cryptocurrency firm Finoa to implement an institutional security token system .

Finoa has an official crypto custody license from the German Federal Financial Supervisory Authority (BaFin) . The cooperation with Black Manta will seek to develop a custody solution for regulated security tokens , specifically targeting institutional investors , individuals and high net worth corporations .

“Germany's crypto custody legislation activated a wide range of service providers in the digital asset space to apply for a BaFin license. German legislation was a crucial step in bringing the confidence and liquidity of professional players into space, ”said Black Manta co-founder and managing partner Christian Platzer.

In addition, he added: "At Finoa , we see a team that is not only well positioned to serve the class of high-level investors, but also brings a mindset that will be necessary to develop this rapidly emerging market ."

On the other hand, the German noted that last month, to launch a real estate STO , the firm only had to "answer some questions" by the German regulatory body .

It should be noted that, from January 1 , the new  crypto regulation came into force in Germany  , to align the country's legal framework with the Fifth Anti-Money Laundering Directive of the European Union (5AMLD) . Companies that are part of the crypto scenario are now considered "financial service providers"  under the German Banking Law , and must obtain authorization from BaFin .

Furthermore, in its document the entity  regulator differed then tokens payment and security tokens : "According to the current legal situation, security tokens are not securities within the meaning of the Law of Deposits (...) However, they are subject to securities as defined in the EU Regulation of Porspecto (…) if they are transferable, negotiable and have similar rights to the securities, ”reads the document.