Germany's Crypto Fund Units Regulation, formally the Verordnung über Kryptofondsanteile (KryptoFAV), is an in-force German regulation governing how certain fund units may be issued as crypto fund units. It has applied since June 18, 2022, after publication in the Federal Law Gazette on June 17, 2022, and the consolidated text reflects amendments made by the Fondsrisikobegrenzungsgesetz that took effect for KryptoFAV on April 16, 2026.
The regulation sits within Germany's broader electronic securities framework. Rather than creating a standalone crypto-asset investment product regime, KryptoFAV adapts selected provisions of the German Electronic Securities Act to investment fund unit certificates under the German Investment Code. It is most relevant to German fund managers, depositaries, crypto securities registrars, and service providers supporting tokenized fund administration.
What the Crypto Fund Units Regulation covers
KryptoFAV permits units in a Sondervermögen, or in individual unit classes of a Sondervermögen, to be issued fully or partly as crypto fund units. The regulation defines those units as electronic unit certificates entered in a crypto securities register. This makes the register entry central to the legal form of the instrument, while the underlying fund remains governed by German investment-fund law.
The scope is narrower than the phrase “crypto fund” may suggest. KryptoFAV does not itself authorize funds to invest in crypto-assets, set crypto portfolio limits, or create a marketing passport. Its function is to allow a dematerialized, register-based issuance form for fund units and to connect that form to the existing electronic securities framework.
Key provisions for tokenized German fund units
- Crypto fund unit definition: Fund units and unit classes may be issued in whole or in part as crypto fund units when entered in a crypto securities register.
- Imported eWpG rules: KryptoFAV applies selected electronic-securities provisions, including the decentralized recording-system concept, register rules, and sanctions cross-references, with wording adapted for fund units.
- Substituted terminology: References to crypto securities or bonds are read as references to crypto fund units; issue terms are read as fund rules; and beneficiaries are read as investors.
- Register keeper: The register-keeping role for crypto fund units is assigned to the depositary or to a company appointed by the depositary with the required crypto securities registry permission or authorization.
Jurisdictional impact and regulatory context
For Germany, KryptoFAV is a tokenization measure within regulated fund administration. It expands the types of investment-fund unit certificates that can be represented electronically while preserving the depositary's position in the fund-law architecture. If the depositary appoints another company to keep the register, KryptoFAV requires arrangements that allow the depositary to continue meeting its statutory duties under the German Investment Code.
The regulation also links crypto fund units to the eWpG model for crypto securities registers. Under that model, a crypto securities register must be maintained on a tamper-resistant recording system that records data chronologically and protects it against unauthorized deletion and later modification. The eWpG also supports collective and individual registration models, which KryptoFAV now references in its amended form.
Status and timeline
KryptoFAV was issued on June 3, 2022, published on June 17, 2022, and entered into force the following day. As of July 3, 2026, it remains in force. The 2026 amendment updated the cross-reference in section 2 from a narrower reference to section 8(2) eWpG to section 8 eWpG and amended section 3 to add a Wertpapierinstitutsgesetz authorization route for appointed register keepers.
Relationship to other crypto laws
KryptoFAV should be read together with the Electronic Securities Act, the German Investment Code, and BaFin guidance on crypto securities registry activity. It is a legal infrastructure rule for tokenized fund units, not a substitute for fund authorization, securities disclosure analysis, crypto-asset service provider rules, anti-money laundering obligations, or investor-facing suitability requirements.
This profile is for legal-reference purposes only and does not provide legal, tax, investment, trading, or compliance advice.