German financial regulatory authority BaFin published further guidance on its view around tokens and crypto-currencies used to structure Initial Coins offerings (German version available here).
In a nutshell, the notice stresses that market participants need to closely assess the character of the respective token, e.g. whether it forms a financial instrument as per MiFID II, a security or constitutes an investment pursuant and subject to respective regulations.
Regulations and respective duties, including potentially also obtaining a licence, may address service providers around ICOs, traders and platforms and also public offerings, so care should be had when picking partner and token for your ICO project.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
