Ownership Transfers

This section details how ecrop handles the core function of a crypto security register (Kryptowertpapierregister): securely and reliably recording and managing the ownership of securities. This functionality is crucial for establishing the legal validity and transparency of all securities held by our platform.

ecrop’s ownership transfer mechanism is designed to handle the dynamic nature of crypto securities, covering two primary scenarios:

1. Initial Emission (Investment): This scenario covers the initial creation and distribution of securities, typically through a crowdinvestment campaign or private placement. Investors acquire ownership of the newly created security, and the register records these initial ownership allocations.

2. Secondary Trading: After the initial emission, securities can be traded between parties. ecrop facilitates these secondary market transactions, securely updating ownership records on the register and ensuring a clear audit trail of all ownership changes. This ongoing ownership management is essential for maintaining market integrity, transparency and regulatory compiance.

While distinct in their purpose, both scenarios leverage the same core API endpoint /transfers and share common prerequisites. This unified approach simplifies integration and ensures consistency in how ownership is managed throughout the lifecycle of a security. For clients seeking a more streamlined integration experience, ecrop also offers the OmniPersona mobile app to facilitate ownership transfers, abstracting away some of the complexities of direct API interaction.

​

Prerequisites for Ownership Transfers

Accurate and secure ownership transfers rely on fulfilling these essential prerequisites:

• Party Registration and KYC/AML Compliance: All parties involved (both the sender and receiver of the security) must be registered on the ecrop platform and have successfully completed the KYC/AML process. This is a non-negotiable requirement for regulatory compliance and ensures that all transactions involve verified and legitimate entities. Please refer to the Security Issuance Overview Section in Security Issuance for more details.

• Public Key Registration: Valid public keys are required for both the sender and receiver. These keys are fundamental to the Proof of Action (PoA) mechanism, which provides cryptographic proof of intent and authorization for the transfer. Without registered public keys, ownership transfers cannot be executed.

• Campaign Status (for Initial Emission): For initial emission investments, the associated campaign must be in the APPROVED state and within its signing period. This ensures that the offering is valid and open for investment.

• Payment Confirmation: For all types of ownershipt transfers, a proof of payment from a valid payment provider is required. This confirms that the funds have been transferred and the investment is financially secured.