Search
Contact
20.07.2018 | KPMG Law Insights

Blockchain: Almost all legal questions still open so far

Blockchain: Almost all legal questions still open so far

Decentralized databases for transactions between parties offer many opportunities in the future + Legal aspects have been little illuminated to date + Questions need to be clarified, particularly with regard to liability, consumer protection and money laundering

The possibilities for exchanging values quickly and easily worldwide through decentralized databases seem limitless. Money can be transferred in the process, as with the Bitcoin application form. However, land, shares in assets or movable property could also change hands in this way.

How blockchain works

The technical basis for such processes is always a so-called blockchain. This is a kind of digital cash book, with which every transaction between parties is transparently recorded and stored with every detail.

The network consists of a large number of computers that are connected to each other via the Internet. There is no central location to which information is transmitted. The information is distributed to all computers participating in the network. The integrity of the data is secured by storing the so-called hash value. This is obtained by using a hash function (German: Streuwertfunktion) to create a reordered string with a fixed length from a data set of any length.

Legal challenges

At present, almost all legal issues are open with regard to regulatory classification. For example, there could be a licensing requirement if trading in financial instruments or the provision of payment services is based on blockchain technology. The question of liability must also be clarified. For example, who is liable for blockchain errors or technical problems? Who is liable in case of attacks on the system by hackers?

With a view to consumer protection , it must be clear which processes take effect in the event of reversals and how warranty rights are handled.

In order to exclude money laundering , the identification of the parties involved must be ensured. It can be problematic that the acting party remains hidden behind the so-called “public key,” which acts as a kind of account number.

Conclusion: Blockchain is a technical development with many opportunities, but also with risks. A legally binding assessment is hardly possible, as there is currently no regulation, but an unmanageable number of use cases. It therefore seems practicable to prepare elaborations of possible solutions for the individual case in order to then coordinate these with BaFin with regard to their feasibility.

Explore #more

14.11.2023 | Press releases

Tax and Law at a glance – New issue of the digital magazine “Talk

“Talk” stands for Tax and Law Compass, because that’s what the digital magazine wants to be: a navigation aid to the legal and tax aspects…

10.11.2023 | Deal Notifications

KPMG Law and KPMG AG Wirtschaftsprüfungsgesellschaft advise Ziemann Holvrieka on the acquisition of Künzel Maschinenbau

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) and KPMG AG Wirtschaftsprüfungsgesellschaft (KPMG) advised Ziemann Holvrieka GmbH from Ludwigsburg on the acquisition of the majority of shares…

09.11.2023 | KPMG Law Insights

Mantelverordnung: New rules for mineral substitute building materials

On 01.08.2023, a number of laws came into force or were amended with the framework ordinance on the recycling of mineral waste: the ordinances…

08.11.2023 | Deal Notifications

KPMG Law advises Wide Open Agriculture on the acquisition of assets of Prolupin GmbH

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) advised Wide Open Agriculture Limited (WOA) on the agreement to acquire the assets of Prolupin GmbH. The agreement provides…

08.11.2023 | Deal Notifications, Press releases

KPMG Law advises Wide Open Agriculture on the purchase of assets of Prolupin GmbH

KPMG Law Rechtsanwaltsgesellschaft mbH (KPMG Law) has advised Wide Open Agriculture Limited (WOA) on the agreement to acquire assets of Prolupin GmbH. The agreement provides…

07.11.2023 | KPMG Law Insights, KPMG Law Insights

GWB amendment: These interventions threaten after sector inquiries

On April 5, 2023, the German government passed the 11th amendment to the Act against Restraints of Competition (GWB), the so-called Competition Enforcement Act.…

01.11.2023 |

Guest article in the “Versicherungswirtschaft” on autonomous driving

Autonomous cars are supposed to be the future. For the insurance industry, the development is accompanied by new risks, but also promising market prospects. In…

01.11.2023 | KPMG Law Insights

The MoPeG is coming – Here’s how GbRs with real estate should act now

On January 1, 2024, the German Act on the Modernization of Partnership Law (MoPeG) will come into force. Then the civil law partnership (GbR) has…

31.10.2023 |

Philipp Glock on the use of generative AI in the current issue of Juve Rechtsmarkt

ChatGPT has ushered in a new information age. The same applies to law firms: If you want to keep up, you have to stay on…

25.10.2023 | KPMG Law Insights

Podcast series “KPMG Law on air”: Company pension schemes in times of inflation

In times of inflation, both employers and beneficiaries worry about how the devaluation of money will affect company pension plans (bAV). Pension commitments are generally…

Contact

Dr. Konstantin von Busekist

Managing Partner
Head of Global Compliance Practice
KPMG Law EMA Leader

Tersteegenstraße 19-23
40474 Düsseldorf

tel: +49 211 4155597123
kvonbusekist@kpmg-law.com

© 2023 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

 KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll