Financial regulation establishes the legal framework applicable to certain activities related to financial instruments. In this context, certain activities carried out through the TokenKey platform are subject to the applicable European and German regulations, depending on the specific service provided and the role of the participating entities.
Below is a general description of the relevant regulatory framework and its scope.
Regulatory framework of TokenKey
BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht) is the competent authority responsible for the supervision of authorised financial institutions in Germany.
In this context, the activities carried out by Tokenkey Solutions Germany GmbH as a tied agent are performed under the indirect supervision of BaFin, through the authorised principal entity, and are subject to the applicable legal and regulatory requirements.
Compliance with MiFID II
MiFID II establishes certain principles applicable to the provision of financial services, including:
The classification of clients based on their experience and knowledge.
Information requirements and risk warnings.
Measures aimed at the management of conflicts of interest.
Regulatory framework and transparency at TokenKey
Within the scope of the applicable regulations, the following requirements are established, among others:
Information obligations and risk warnings.
Internal control and compliance procedures.
Technical and legal requirements applicable to the structuring of tokenised issuances, where applicable.
What implications does this have for investors?
The application of a regulatory framework means that certain activities are carried out in accordance with specific legal requirements. However, this does not eliminate the risks inherent in transactions involving financial instruments or digital assets.
The application of the regulatory framework does not constitute a guarantee of results nor does it eliminate the risks associated with transactions, including the possible total loss of the committed capital.
For additional general information on the applicable regulatory framework, the documentation available on the platform may be consulted.