ecrop
platform, are explained in detail. Legal foundations, technical implementation, regulatory requirements, and future developments are comprehensively illuminated.
ecrop
platform provides the necessary infrastructure and legal framework for compliant equity crowdfunding using crypto shares.
Example: A medium-sized company needs capital for business expansion. Through crypto share issuance via the ecrop
platform, the company can raise capital from multiple investors, including retail investors who otherwise wouldn’t have access to such investment opportunities. The reduced costs and simplified process compared to a traditional IPO enable the company to access needed capital more quickly and efficiently.
ecrop
platform and integration with the existing HR system (e.g., Personio), the company can handle the process simply and efficiently. Employees can manage their crypto shares through the platform and receive transparent insight into their shares’ value.
ecrop
platform, dividend payment can be processed automatically. Dividends are automatically distributed to shareholders’ wallets without manual intervention required. This saves time and costs while minimizing payment error risk.
ecrop
platform and viewed by investors anytime. Information is stored tamper-proof on the blockchain and thus verifiable at any time. This strengthens investor trust, increases company credibility, and promotes long-term engagement.
Example: A company publishes its quarterly reports on the blockchain. Investors can view and verify reports anytime without waiting for third-party publication. This increases transparency and trust in the company.
ecrop
platform provides necessary infrastructure for transparent and compliant processing of such citizen participation projects.
Example 1: A municipality wants to finance construction of a new swimming pool. Through crypto share issuance via the ecrop
platform, community citizens can acquire shares in the swimming pool and thus participate directly in its financing and later success. Investors receive reduced entry fees or other additional benefits.
Example 2: A project developer plans to build a wind park and wants to involve citizens from surrounding communities in financing. Through crypto share issuance via the ecrop
platform, citizens can acquire wind park shares and benefit from its revenues. Returns are distributed cost-effectively and automatically through the ecrop
platform. This promotes acceptance of such projects among the population and strengthens the regional economy.
ecrop
platform. It explains the legal consequences of a transfer, the role of the crypto securities register, and advantages over traditional shares. Focus is on technical implementation and legal specificities of crypto shares.
ecrop
ecrop
platform uses blockchain technology for transferring electronic shares and crypto shares.
ecrop
’s electronic securities register.
ecrop
API enables integration of the transfer function into other systems and applications.
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) to illustrate relative advantages and disadvantages of crypto shares compared to traditionally digitally managed shares.
Subsequent explanations delve into individual aspects in detail and illuminate implications for issuers and investors.
Feature | Crypto Share (Decentralized Register) | Traditional Share (Digital at Central Depositor) | Rating |
---|---|---|---|
Registry Management | Decentralized register, DLT-based No intermediary needed Registry management by issuer or licensed crypto securities registrar Regulatory requirements (eWpG, KWG crypto custody license, GwG, DLT Pilot Regulation) BaFin supervision | Centralized register, maintained by central depositor (e.g., Clearstream) Intermediary required Strict regulatory requirements (DepotG, KWG, WpHG, CSDR, MiFID II/MAR) BaFin supervision | +++/+ |
Transparency | Enhanced, transactions viewable in network | Limited, no direct shareholder access to register | +++/+ |
Security | Enhanced through DLT (tamper-proof, immutability), cryptography (encryption, key custody) | Dependent on central depositor measures | +++/++ |
Flexibility | Flexible processes through DLT, smart contracts | Standardized processes, less flexible | +++/+ |
Efficiency | Real-time transaction processing through DLT | Transaction processing can take up to two banking days | +++/+ |
Costs | Reduced costs through decentralized registry management and automation | Fees for central depositor and intermediaries | +++/- |
Liquidity | Potentially lower market liquidity, dependent on crypto share market development | High market liquidity through regulated market access | +/+++ |
Exchange Eligibility | Limited, dependent on DLT Pilot Regulation implementation | Yes (upon meeting requirements, e.g., collective custody entry) | +/+++ |
Investor Protection | Dependent on regulation and crypto share market development | Regulated market, established processes | +/++ |
Compliance | Meeting eWpG requirements | Meeting traditional securities law requirements | ++/++ |
Integration with Existing Systems | Easy integration with existing financial infrastructure | Easy integration with existing financial infrastructure | +/+++ |