Clifford Chance

The German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) has published a market survey on derivatives with cryptoassets as underlying asset.

Objective

The objective of the market survey is to obtain a detailed picture of the market for derivatives with cryptoassets as underlying assets and their possible risks. The market survey is addressed to all market participants, in particular investors, consumer protection associations, providers and issuers as well as interest groups.

Background

The background of the market survey is the continued increase in the number and total volume of cryptoassets – especially cryptocurrencies – in recent years. With the increasing interest in cryptoassets, the range of derivatives (at present mainly certificates and contracts for difference, CFDs) referencing cryptoassets as underlying assets has also increased. At the same time, international supervisory authorities are issuing an increasing number of warnings and guidance on the topic of cryptoassets.

Obligation

BaFin is obliged to protect the collective interests of consumers under section 4 (1a) of the Financial Services Supervision Act (Finanzdienstleistungsaufsichtsgesetz, FinDAG). Against this background, BaFin monitors and analyses market developments with regard to potential consumer protection issues.

Comments on the survey are requested by 13 December 2019