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Very soon – in less than two weeks! The Tokenizer will launch the world’s first AI-powered regulatory GPT – or RegGPT – designed specifically to cover the space of asset tokenization and digital assets. 

The RegGPT will be an integrated part of The Tokenizer’s SaaS product, The Token RegRadar

With this game-changing AI upgrade, The Token RegRadar will be a vital tool for any professional who needs to understand or analyse regulatory requirements and stay updated with regulatory changes and news within the asset tokenization and digital asset industry. 

But what kind of question is the new RegGPT actually capable of answering? In this countdown series, we will show you some examples: 

  • Can you briefly explain what the German Electronic Securities Act (Gesetz über elektronische Wertpapiere, eWpG) is all about?
  • The German Electronic Securities Act (Gesetz über elektronische Wertpapiere, eWpG) is a significant legislative step towards the digitization of the financial sector in Germany. It represents a move away from the traditional requirement for physical certificates to represent securities and towards a system that allows for the issuance and trading of electronic securities. Here are some key aspects of the eWpG:
    1. Innovative Technologies: The eWpG enables the use of distributed ledger technology (DLT) for the issuance of bearer bonds. This reflects Germany’s openness to contemporary technological developments in the financial markets.

    2. Legal Equivalence: The act stipulates that the issuance of an electronic security (e-security) has the same legal consequences, rights, and obligations as the issuance of a certified security. This ensures that electronic securities are fully recognized under the law.

    3. Electronic Securities Registers: The eWpG establishes a legal framework for the trading of rights through electronic securities registers. These registers serve as an alternative to the conventional paper-based system for the creation and transfer of securities.

    4. Crypto Securities Register License: A new license category has been introduced for entities that maintain a crypto securities register, which is essential for the administration of electronic securities.

    5. Regulatory Amendments: The eWpG has led to changes in various regulatory frameworks, including the German Stock Exchange Admission Regulation, the German Securities Prospectus Act, and others, to accommodate the introduction of electronic securities.

    6. Consumer Protection and Blockchain Strategy: The act is part of the German government’s blockchain strategy and is aligned with the joint paper by the German Federal Ministry of Finance and the Federal Ministry of Justice and Consumer Protection on the regulatory treatment of electronic securities and crypto tokens.

    7. Phased Approach: Initially, the eWpG is limited to bearer bonds, with plans to include other types of securities, such as equity instruments and other debt instruments, at a later stage.

    8. Market Integrity and Transparency: The introduction of electronic securities is intended to enhance the viability, integrity, transparency, and functioning of the German financial markets.

    The eWpG is a clear indication of Germany’s commitment to modernizing its financial market infrastructure and embracing the potential of blockchain and other DLTs to innovate securities trading and settlement.

Previously we’ve asked the AI:

How would you evaluate the developments we have seen globally in the asset tokenization space during the second half of 2023?

“In the second half of 2023, Hamilton Lane started tokenizing private funds on ADDX. Can you tell a bit about Hamilton Lane and explain how and why they did that? What are the main regulatory challenges of doing what Hamilton Lane is doing?”

If you want to know more about a subject, you can simply ask the RegGPT follow-up questions or use The Token RegRadar’s other features like the search engine, the collection of law texts and more.

If this made you curious about how The Token RegRadar can help you in your daily work, please visit https://regradar.thetokenizer.io and sign up for your two day free trial right now.

Image by Maheshkumar Painam from Unsplash

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