DORA Check
Digital threats and cyberattacks are increasing every year. In 2023, digital threats caused damages of more than €200 billion in Germany, of which 72% resulted from cyberattacks (source: Bitkom, study on economic protection 2023). To counter the threat to the system-critical financial sector, the EU has decided to implement a uniform, high level of security. The Digital Operational Resilience Act (DORA) is the answer.
The regulation on digital operational resilience is intended to reduce the risks arising from the ever-increasing dependence on information and communication technology in the financial sector. In particular, DORA is expected to reduce the risk [...]
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DORA takes effect: Digital resilience and cybersecurity in the EU
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ZuFinG II – The Next Step Towards Strengthening Germany as a Financial Hub?
Following the initial steps with the Future Financing Act (“ZuFinG I“), the Federal Ministry of Finance presented the draft of the Second Future Financing Act (“ZuFinG II-E” and “Draft Bill“) on 27 August 2024. The Draft Bill aims to further develop the German financial market and revise some of the existing regulations. The primary focus is on facilitating access to the capital markets and relieving financial actors from excessive bureaucracy.
New Regulations for Payment Service Providers Regarding Customer Funds
Payment service providers are required to safeguard customer funds they receive according to the methods outlined in the German Payment Services Supervision [...]
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Dubai and Abu Dhabi Firms Involved in Crypto: Regulatory Pitfalls to Avoid When Dealing with EU or UK Clients
Co-Authors: Vlad Maly | Michal Chajdukowski
Continuing developments in the crypto regulatory sphere have significantly increased the attractiveness of Dubai and Abu Dhabi for crypto firms with global ambitions. Firms should remember, however, that they may also need to comply with the EU or UK crypto regulatory regimes, especially when engaging with clients or investors from these jurisdictions.
In this article, we summarise recent crypto developments in the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), and discuss the pitfalls crypto firms should avoid when dealing with EU or UK clients.
Recent [...]
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Annabelle Rau in Cointelegraph: An EU perspective on the Supreme Court’s Loper Bright decision
Annabelle Rau comments in Cointelegraph on the judgement in the Loper Bright vs Raimondo case and its significance for the crypto industry from an EU perspective . Read her expert assessment of the US Supreme Court’s decision
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From payment service providers to professional football clubs: New EU regulations to combat money laundering adopted
On April 24, 2024, the European Parliament adopted a new anti-money laundering legislative package to strengthen the EU’s tools to combat money laundering and terrorist financing.
The package includes
• the sixth Anti-Money Laundering Directive (“AMLD6”) as well as
• the EU Regulation on a Single Rulebook and
• a new central supervisory authority.
Extended access to beneficial ownership data
A key aspect of the new legislation is to ensure that persons with a legitimate interest – including journalists, civil society organizations, supervisory authorities and other relevant stakeholders – have direct and unhindered access to beneficial ownership [...]
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Update for crypto asset service providers: Draft bill to transfer German crypto regulation to the EU MiCAR regime
These proposed regulations specify the simplified authorization procedure and create the possibility of submitting applications before the MiCAR regulations become fully applicable.
In brief: Simplified authorization procedure for already regulated institutions
At the end of 2023, the German legislator presented the draft Financial Market Digitization Act (“FinmadiG“), which, among other things, provides for a separate Crypto Markets Supervision Act (“KMAG“) (we [...]
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BaFin Declines to Act Against PFOFs (For Now)
The Federal Financial Supervisory Authority (BaFin) will, for now, not take action against payments by third parties to investment firms (Wertpapierfirmen) for forwarding client orders (known as payment for order flow, or PFOF).
In an announcement dated 22 March 2024 BaFin stated that, should investment firms violate the PFOF prohibition with domestic clients, it will refrain from taking measures or imposing sanctions until the completion of the national legislative process in Germany. The PFOF prohibition, as contained in the amended version of the Regulation (EU) No. 600/2014 of the European Parliament and of the Council (MiFIR), stipulates that investment firms [...]
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Bitcoin Halving Is Just Around the Corner
After the approval of cryptocurrency exchange-traded funds (ETFs) in the United States, another fundamental event for the crypto industry is on the horizon: the expected bitcoin halving in mid-April 2024.
The approval of so-called bitcoin spot ETFs by the US Securities and Exchange Commission (SEC) in early January 2024 led to significant cash inflows into the crypto market, specifically targeting the market for bitcoin spot ETFs. Between March 4 and March 13, 2024, approximately US$3.8 billion was invested into the newly approved bitcoin ETFs, resulting in bitcoin reaching a new record high of around US$ 73,750.
Now, the industry eagerly [...]
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Compliance in focus: duties, challenges and competencies of the Management Board and Supervisory Board
The webinar with our partner Renate Prinz focuses on the latest compliance challenges for executives and supervisory boards. It delves into essential topics that are highly relevant today, both for C-level executives and non-executives on governing bodies. We begin with a thorough introduction to current compliance requirements and the organization of compliance within the company.
Explore key themes, including whistleblowing, anti-money laundering, the Supply Chain Due Diligence Act, and ESG. A central focus of the Passion for People webinar is understanding the specific responsibilities that board members and supervisory boards bear in this context, as well as effective ways to [...]
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