Month: September 2022
FinTech Market: Regulation of crypto assets in Germany and the EU
By Annabelle Rau | Renate Prinz on 21. September, 2022
Posted In Crypto Regulation
In this webinar, Renate Prinz and Annabelle Rau provide an overview of the current regulatory land-scape for crypto assets and crypto service providers in Germany, also taking a look at the European level, where uniform legislation for the regulation of crypto-assets is coming soon. The following fur-ther topics will be covered:
- Regulatory classification of crypto-assets in Germany.
- Licensing requirements in connection with crypto-assets and crypto-services
- Overview of the regulatory requirements for entities regulated in Germany
- Draft European crypto regulation, in particular the Markets in Crypto-Assets Regulation (“MiCAR”).
- Passporting of licenses within the EU
Click here to watch the video.
Interested in the presentation used in the webinar? Contact us to receive a PDF of the presentation.
Article in Libra: EU creates uniform rules for dealing with crypto assets
By Annabelle Rau | Renate Prinz on 16. September, 2022
Posted In Crypto Regulation
In their latest article for “Libra – das Rechtsbriefing”, Renate Prinz and Annabelle Rau present the main contents of the new “Markets in Crypto-Assets Regulation” (MiCAR), which the European Council, the EU Parliament and the EU Commission recently agreed on.
Click here to read the entire article.
New BaFin circulars on liquidity standards
By Renate Prinz on 02. September, 2022
Posted In Banking Law
In August, BaFin published new circulars on the quantitative liquidity standards of the CRR (Capital Requirements Regulation), which, in particular,
- address the regulatory treatment of off-balance sheet products in the structural liquidity ratio (Net Stable Funding Ratio – NSFR or “simplified NSFR”) as well as
- adjust the materiality criteria for annual reporting (Art. 23 of Delegated Regulation 2015/61).
The two circulars are relevant for all institutions to which Article 6 (2) CRR apply and which are classified as “Less Significant Institutions (LSIs)” pursuant to Article 6 (4) SSM Regulation, as well as for all institutions pursuant to Section 1a German Banking Act (KWG) which are not CRR credit institutions, but which are classified as CRR credit institutions with regard to the application of certain standards (Section 1a (1) KWG).
The adjustment of the materiality criteria is intended in particular to relieve many institutions of the reporting obligation, to ensure that reports only have to be submitted by institutions for which the respective product groups are also relevant in terms of substance, i.e. higher thresholds for the materiality criteria and more precise determination of the products and services covered by Art. 23 (1) a) – h) IR 2015/61 and associated liquidity outflows.
The liquidity standards distinguish between liquidity coverage ratio (LCR) and the structural liquidity ratio (NSFR). The NSFR is intended to hedge structural, longer-term liquidity risk, i.e., to ensure that institutions have sufficient and stable funding over the long term to reduce their stress sensitivity. Accordingly, institutions must have a minimum level of stable funding. The LCR, on the other hand, addresses short-term liquidity and ensures a liquidity buffer for a stress scenario of at least 30 days, with the respective stress scenario being specified by the supervisory authority.
Circular 6/2022 has been applicable since publication on August 1, 2022 and is to be taken into account for the first time for the reporting date of March 31, 2023. Circular 7/2022 applies from August 15, 2022.
To access the circulars, click here:
A summary of the measures and further background explanations can be found here.
