The eWpG is bearing its first fruits in Germany. Chartered Investment has now announced that it has issued the “first crypto security”.
At the beginning of May this year, the grand coalition decided that “Law on the Introduction of Electronic Securities” (eWpG) and thus paved the way for digital securities. Up until now, a physical certificate was always required for each security. In addition, the law expanded the existing central register to include a crypto securities register that applies to blockchain-based financial products.
The law is now bearing its first fruits. So announced Chartered Investment to have issued a crypto security based on Ethereum. According to the “Capital Markets as a Service” company, this is the first privately placed issue worldwide that complies with the regulations of the eWpG.
“Issuance of crypto securities is an important development step”
Eric Romba and Robert Oppenheim from the law firm lindenpartners provided legal support for the Düsseldorf company’s issue. From the notification of intent at the BaFin, through the development of the service contract and the terms and conditions, to the formulation of the issuing conditions for the crypto security as a bearer bond. Romba describes the step of Chartered Investment as follows:
With the first issuance of a crypto security paper with the involvement of a registrar in accordance with the eWpG, an important step in the development of the blockchain ecosystem in Germany has been reached. Because now there is the possibility of issuing bearer bonds under civil law without the involvement of a central securities depository. We see great growth potential for the crypto market here. Because with crypto securities according to eWpG, a product that is regulated in the same way as classically securitized securities is created. In our opinion, the product will have a significantly higher level of acceptance. B. with professional investors as previously security tokens.
Eric Romba from lindenpartners
In this case, the register for the crypto security is in charge e-Sec. The private placement runs through the subsidiary Chartered Opus. The capital raised from this is then to be invested in ZSquare to be invested. It is an Israelite medical device company. The investment volume was not yet known at the time of going to press.