ecrop
operates in a strictly regulated environment. Transparency and legal certainty are our top priorities. This chapter provides you with a comprehensive overview of the legal framework in which we operate and explains in detail how ecrop
complies with all relevant laws and regulations, particularly the eWpG
, CryptoAssetTransferV
, and MiCAR
regulation. We show you how our solutions help minimize compliance risks and manage your digital assets securely and efficiently.
ecrop
is in the application process for two core BaFin licenses (crypto register operation allowed due to grandfathering with final license pending. license application for crypto custody pending) that form the foundation of our business model: the permission as a crypto securities registry manager under § 1 Para. 1a Sentence 2 No. 8 KWG
in conjunction with § 16 eWpG
and the permission for crypto custody under § 1 Para. 1a Sentence 2 No. 6 KWG
.
Currently, the KWG
license for crypto custody is still in the application process. Once granted, ecrop
will offer custody of crypto assets in accordance with the requirements of KWG
and CryptoAssetTransferV
.
eWpG
, ecrop
offers all necessary functions for the issuance, registration, transfer, and management of crypto securities.
KWG
in conjunction with § 16 eWpG
): This BaFin license (grandfathering; final license pending) allows us to maintain the electronic securities register for crypto securities. It covers the issuance, registration, transfer, and management of crypto securities and ensures that all transactions and ownership relationships are documented transparently and traceably.ecrop
crypto securities register is based on a solid legal foundation and meets all relevant legal requirements:
eWpG
(Electronic Securities Act): The eWpG
creates the legal framework for digital securitization of securities in Germany and regulates their issuance, registration, transfer, and custody. It enables the decorporealization of securities, i.e., the separation of the right to the security from the physical certificate. This creates electronic securities that exist exclusively digitally and are maintained in an electronic securities register. The eWpG
differentiates between various types of electronic securities, including crypto securities based on Distributed Ledger Technology (DLT
).
Link to eWpG
eWpRV
(Electronic Securities Register Regulation): The eWpRV
specifies the requirements of the eWpG
for maintaining electronic securities registers and defines detailed requirements for data security, transparency, and integrity. It regulates, among other things, the technical requirements for the register, the processes for issuing, registering, and transferring electronic securities, as well as the obligations of the registry manager. The eWpRV
serves to protect investors and ensures the functionality of the electronic securities market. As a crypto securities registry manager, ecrop
fulfills all requirements of the eWpRV
and thus ensures the secure and reliable operation of the crypto securities register.
Link to eWpRV
KWG
(Banking Act): The KWG
regulates the activities of credit institutions and financial services institutions in Germany and sets, among other things, strict requirements for business organization, risk management, compliance with money laundering regulations, and custody of client funds.
Link to KWG
ecrop
fulfills all organizational requirements for operating a crypto securities register:
ISMS
) according to ISO 27001
and thus ensure compliance with the highest international security standards.
Link to ISO 27001 Certification
ISB
is responsible for implementing and monitoring the ISMS
and ensures compliance with all security guidelines and processes.
ecrop
platform meets all technical requirements for secure and reliable operation of a crypto securities register:
AWS
cloud.
ecrop
employs numerous security measures, such as encryption, access controls, and monitoring, to ensure the security of the platform and managed securities.
ecrop
fulfills all regulatory obligations under eWpG
and eWpRV
:
eWpG
and eWpRV
, particularly regarding the registration, modification, and deletion of securities.
ISMS
.
ecrop
is working intensively to offer a reliable and fully regulated solution for the custody of your digital assets that meets all requirements of the KWG
and CryptoAssetTransferV
. Currently, our license for crypto custody under § 1 Para. 1a Sentence 2 No. 6 KWG
is in the application process. Once the license is granted, we will provide you with our cold storage architecture and multi-level security architecture to optimally protect your crypto assets.
The Challenges of Crypto Custody
ecrop
Solution: Maximum Security and Compliance through Multi-Custody Approach
ecrop
uses a multi-custody approach that combines the advantages of cold storage and state-of-the-art security technology to ensure the highest possible protection for your crypto assets while maximizing flexibility and availability for transactions. This approach enables us to meet our customers’ individual needs while maintaining the highest security standards and complying with all relevant regulatory requirements.
HSMs
). HSMs
are specialized hardware devices that offer a high degree of tamper protection and are ideal for secure storage of cryptographic keys.
RBAC
) limits access to sensitive data and functions to a minimum number of authorized persons.
MFA
requires multiple independent factors for authentication, significantly increasing security.
AES-256
) and during transmission (TLS 1.3
).
ecrop
fulfills all relevant regulatory requirements for crypto custody:
KWG
and CryptoAssetTransferV
.
GDPR
and BDSG
.
ecrop
’s custody services, they can store their assets in cold storage and benefit from maximum security and compliance.
ecrop
generates unique key pairs for each customer in HSMs
using cryptographically secure random number generators (CSPRNGs
). The keys are never stored or transmitted unencrypted.
HSMs
and are protected against unauthorized access.
MFA
and four-eyes principle). All key data is encrypted.
HSMs
provides maximum security and tamper protection for your keys.
ecrop
ensures secure and efficient processing of crypto transactions.