Article 3: Legal Aspects of Blockchain Technology — Licence Requirements for Leasing, Factoring, and Sales Financing

Jonas Gross
11 min readDec 14, 2020

Authors: Markus Kaulartz, Jonas Gross, Constantin Lichti, Philipp Sandner, Daniel Holk

In this article, we analyze from a legal perspective under which circumstances companies providing specific financial services require regulatory approval. We differentiate in our legal assessment between (i) finance leasing, (ii) factoring services, and (iii) sales financing. Furthermore, we offer suggestions for the practical implementation. The article assumes the application of German laws.


This article is the third publication of the series “legal aspects of blockchain technology” by the Frankfurt School Blockchain Center (FSBC), Datarella, and CMS Hasche Sigle. This research is part of the KOSMoS project, a research project funded by the German Federal Ministry of Education and Research (BMBF) under the funding code 02P17D020. The Frankfurt School Blockchain Center gGmbH and Datarella GmbH are part of the “KOSMoS” consortium. Together with partners from the industry (Schwäbische Werkzeugmaschinen GmbH, Alfred H. Schütte GmbH & Co. KG, ASYS Automatisierungssysteme GmbH), academia (Universität Stuttgart, Hochschule Furtwangen), and software development (inovex GmbH, Ondics GmbH), they create a blockchain-based solution allowing manufacturing companies to establish a DLT-based framework for producing machines in order to (a) execute dynamic leasing contracts, (b) provide transparent maintenance documentation and © ensure high-quality documentation of manufactured products.


Blockchain technology enables various new and innovative business models, e.g., related to pay-per-use. As one example, dynamic leasing use cases can be implemented efficiently on a blockchain. The lessor provides a machine to the lessee. In case of dynamic leasing, the leasing fee is variable and depends on the use of the machine, the maintenance, material used etc. In contrast to current leasing arrangements, the leasing fee is dynamic. This can easily be implemented by using smart contracts.

As such pay-per-use business models get more and more attention in the German industry, in this article, we analyze related legal requirements. We focus on the aspect if the lessor has to get a licence in order to provide such leasing services. Furthermore, we discuss licence requirements…



Jonas Gross

Jonas Gross is Chairman of the Digital Euro Association (DEA) and COO at etonec. Further, Jonas holds a PhD in Economics.