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The Crypto Risk Metrics offer various features that can be customised.

Risk management for
native crypto investments

In accordance with MaRisk and BAIT, regulated financial institutions must maintain adequate risk management systems for all the assets they manage, whereby common standards must be taken into account.

The Crypto Risk Metrics software-as-a-service solution provides risk controllers with technical support and reference to BSI and other recognized standards enabling them to keep an eye on the specific risks associated with investments in native crypto assets – i.e. direct investments in Bitcoin, Ethereum and other crypto assets – at all times.

By providing daily reports and a complete audit trail including corresponding statistics, the risk management system can be presented quickly and comprehensively in the event of audits as well.

Risk management for
indirect crypto investments

The requirements of MaRisk and BAIT also apply to indirect crypto investments – i.e. investments in crypto ETPs, for example.

Regulated institutions must prove that they can adequately manage the specific risks of the asset class, whereby the Bundesbank explicitly pointed out in its monthly report of November 2023 that the special technical risks must also be adequately taken into account.

In addition to basic risk management at asset level, the Crypto Risk Metrics software therefore offers a comprehensive package of on-chain surveillance, which provides both issuers of and investors in crypto ETPs with the best possible protection in the event of hacks

Risk management for
tokenized assets

The tokenization of securities exposes all parties involved to new types of risks that do not exist in traditional securities issuances.

In many of the current “proof-of-concepts”, these risks have so far been neglected, as they so far have only been showcases and therefore the proportionality approach was used to address – or better not address – specific risk management requirements..

Irrespective of the fact that the current showcases often do not yet justify comprehensive risk management procedures, the attack vectors are much less negligible than they appear – incorrect balance sheet preparation is just one of the keywords here.

At the same time, extensive questions arise with regard to AML and KYC, which should be mitigated by appropriate measures at this early stage.

The Crypto Risk Metrics can help you with this.

KARBV-compliant
price data

Section 27 of the ordinance on the content, scope and presentation of the accounting of investment funds, investment stock corporations and investment limited partnerships and on the valuation of the assets belonging to the investment fund stipulates the requirement for valuation on the basis of tradable prices.

With regard to native crypto asset trades – i.e. direct investments in Bitcoin, Ethereum and other crypto assets – the challenges of the trading platform arise, as these are largely not traded on so-called “organized markets”.

This situation requires an assessment in accordance with a suitable valuation model pursuant to Section 28 (3).

Crypto Risk Metrics provides you with KARBV-compliant price data based on a valuation model specially developed for crypto value trades.

Market conformity check
of cryptocurrency trades

In accordance with circular 05/2023 (BA) minimum requirements for risk management, all trading transactions at non-market-compliant prices are generally prohibited.

Based on the module for KARBV-compliant price data provision, a further module was developed for the automated verification of the market conformity of crypto value trades.

Using the module for checking market conformity, customers receive a daily report on the trades carried out – simply and securely, either via SFTP server upload or as a CSV file.

ESG data for
crypto assets

When MiCAR enters into force, crypto-asset service providers will be required to provide ESG data for the crypto-assets they offer. Crypto-Risk-Metrics can helps by providing the relevant datasets and templates, which can be easily integrated into the respective websites.

As the final regulations in the so-called RTS 2 are still in the consultation phase, it is not yet possible to finalize their implementation. The experts at Crypto Risk Metrics are closely monitoring the further development of the consultation process and will act accordingly as soon as this is possible.

Would you like to be informed as soon as reliable information is available, on the basis of which it will be possible to prepare data delivery offers? Send us an e-mail with your name and e-mail address and we will get back to you.

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