![]() Thus, classification in individual cases regularly requires the support of specialized experts. BaFin also recognizes the existence of hybrid tokens that combine characteristics of different token categories. The latter generally constitute securities and are therefore highly regulated. The German Federal Financial Supervisory Authority ( Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) for example, distinguishes in its regulatory framework between utility tokens, payment tokens and security tokens. From a regulatory perspective, the question of whether the sale of tokens in the context of an Initial Coin Offering ("ICO") triggers prospectus or permission obligations is of great importance, which in turn depends on the legal nature of the specific tokens offered as part of a funding round. The issue applies at both European and national level – there has been no harmonization of the EU regulatory framework to date, with the result that the regulations in the member states differ significantly. In principle, the diverse nature of tokens makes a clear legal classification of tokens (and the related rights and legal framework) difficult. Since the Metaverse is not bound by national borders, effective legal advice requires a cross-border approach by specialized legal experts with a particular footprint in IT and data privacy laws such as Taylor Wessing, which was recently named "Law Firm of the Year" in IT-law by the German business newspaper Handelsblatt.įor VC investments in particular, the aforementioned funding trends through tokens may also have legal implications. For example, the development of the Metaverse could pose challenges to players, particularly in terms of competition or copyright law and, by its very nature, data protection law. ![]() Like any major technological development, the move from Web 2.0 to Web 3.0 raises a variety of legal and regulatory questions. New legal territory: Metaverse, tokens and fundraising The entire crypto industry has recently suffered from a deteriorating financial environment. Leading financial institutions such as JP Morgan are yet skeptical of the further funding development: JP Morgan expects a 50% decline in crypto investments by the end of this year. ![]() The gaming industry was arguably a major focus of VC investments in the past year of 2021. With a $2 billion investment from Sony and Lego, Fortnite developer Epic Games is pursuing its own Metaverse-related plans. With Games Fund One, Andreessen Horowitz (also called a16z) has recently launched a $600 million fund, which focuses on investments in the gaming sector of the Metaverse. A number of powerful players from various industries are involved in the evolution of the Metaverse. Binance Labs, a subsidiary of crypto exchange Binance, most recently raised $500 million to invest in Web 3.0 start-ups.Įmbedded in the development of Web 3.0 is the continuing emergence of the Metaverse, i.e., internet-based, permanently established and interconnected virtual worlds in which users can move in real time – for example, using virtual and augmented reality. The Tom Brady backed NFT platform Autograph secured $170 million in a Series B round. Selected large scale Web 3.0 and DeFi deals in the first quarter of 2022 include a $450 million Series Seed round for US-based Yuga Labs, parent company of the Bored Ape Yacht Club NFT collection, and a $400 million Series A round for FTX's US trading subsidiary. Fundraising through the sale of tokens has not yet even been taken into account when determining these figures, so the real volume is presumably substantially higher. These investment volumes took the top position in each of the periods mentioned, well ahead of the following sectors such as bio- and fintech. The Emerging Tech Indicator by PitchBook, which is based on the evaluation of investments by selected, particularly successful VC firms, shows a total volume of over $6 billion (early and seed stage) for a rolling twelve-month period up to March 31, 2022, of which just under $2 billion was invested in the first quarter of this year alone. Web 3.0 and decentralized finance (DeFi) have recently attracted substantial VC investments. ![]() Challenges and opportunities of blockchain technology to legal services Web 3.0 in the focus of VC investors ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |