Bird & Bird advised Maltese Mediarex on the issuance of crypto token in Germany

01-2020

Bird & Bird LLP advised Malta-based Mediarex Enterprises Limited and its subsidiary Socios Services Limited on the issuance of a blockchain-based 'Fan Token', in Germany.

Socios.com is the brand name under which Mediarex group has partnered with some of the biggest football clubs in the world for the purpose of producing branded digital assets known as ‘Fan Tokens’. These ‘Fan Tokens’ grant voting rights to the holder to participate in survey polls and win the opportunity to win match tickets and/or merchandise. They can be traded on the Socios.com marketplace. Socios.com intends to issue Fan Token in cooperation with clubs in the German Bundesliga.

The team at Bird & Bird advised on the type of Token to be issued and the subsequent correspondence with German regulator BaFin. BaFin makes the distinction between so-called Utility Token, Security Token and Currency Token, each of which is subject to different regulatory requirements. The regulatory assessment conducted and the coordination with BaFin revealed that the issuance of a 'Fan Token' does not require any licenses under the German Banking Act (KWG), Securities Regulation (WpPG, WpHG), German Payment Services Supervision Act (ZAG) and German Capital Investment Act (VermAnlG).

Frankfurt based Bird & Bird partner Dr. Michael Jünemann and associate Johannes Wirtz, LL.M. (both Banking & Finance) advised Mediarex Enterprises on the matter. Both are dedicated experts in the field of financial innovation with a particular focus on crypto token and other blockchain-based applications.