Digital Law/ Blockchain and Tokenization
Digitization supported by new technologies offers the opportunity to revolutionize classic business models and the relationships between companies and their stakeholders. This enormous technical potential raises complex legal questions that require thorough review in order to minimize liability risks, as well as the risks of penalties and damage to the company’s image. Through compliance, competitive advantages that arise from the use of new technologies can be maximized in the long term and legally secured. Blockchain technology, which offers a wide range of possible uses, has already established itself as one of many emerging new technologies. With the help of blockchain technology, existing processes can be automated, set up transparently and securely, and new business models can be developed. Blockchain technology is also finding its way into corporate and securities law through tokenization (the “digital securitization”) of shareholder rights.
The second – increasingly important – technology to be highlighted is “artificial intelligence”, which is already being used by many pioneers. Artificial intelligence offers enormous potential, but its use also raises complex legal issues. For example, who is liable if an autonomously driving car causes an accident? How can the artificial intelligence algorithm be protected?
What EY Law can do for you
We assist and advise our clients in the legal analysis of their business model and cooperate with EY IT experts, which enables us to ensure comprehensive and competent advice. We also represent our clients before the Austrian and European authorities (in particular the Financial Market Authority) and courts and support them in preliminary coordination and communication with them.
Our services include:
- Legal analysis of your digital business model (e.g. use of tokens/ smart contracts/ artificial intelligence)
- Regulatory analysis and structuring of your business model, in particular with regard to banking law, Payment Services Act, Alternative Investment Fund Manager Act, Securities Supervision Act and other regulatory frameworks
- Analysis and structuring of your business model on the basis of applicable civil and consumer protection regulations, in particular with regard to the E-Commerce Act, the Distance and Off-Premise Selling Act and the Distance Financial Services Act
- Focus on “data protection compliance” (e.g. for blockchain applications, big data analyzes, processing of personal data)
- Advising FinTechs and InsurTechs
- Advice on and support for the Financial Market Authority’s preliminary review procedures