With respect to the new laws to be implemented on the 2nd of August, any institution funds in Germany will have the ability to keep 20% of their precious assets in the form of cryptocurrency.
If these laws are implemented successfully, which they probably will, they can bring up a massive investment flow worth hundreds of Billions of dollars into the German cryptocurrency market. The new laws will also highlight the possibility of Bitcoin and other cryptocurrencies becoming mainstream in Germany and gain the acceptance it requires.
According to reports from Bloomberg, the new laws basically change the way how investments work in the case of special funds such as pension fundings and insurances. The Special funds currently consist of assets of nearly $2.1 Trillion in cost, which are currently approachable by institutional investors. An official named Tim Kreutzmann, from the investment fund in Germany, BVI, stated to Bloomberg that at the start, the majority of the funds would keep to near 20% because if we take a look at one side, insurers have to follow very strict regulation processes for investments and on one side, they are also interested in investing in cryptocurrency.
Germans Promoting Innovation in Blockchain and Crypto
The new laws definitely highlight how a big change has come to how Lawmakers in Germany are handling these new Digital Assets. Germany’s own Financial Supervisory Authority is still warning many Digital Asset investors to proceed with utmost care and thought when investing their precious wealth into assets. But the Authority also seems to promote the advancement of blockchain technology in Germany, revealing some interest.
Germany has been on a roll for digital currencies since back in 2019. To promote the advancement of blockchain technology, the country passed nearly 44 ways of how digital assets and blockchain can be handled, which are in line to be realized by the end of this year. This support for digital assets and blockchain technology will surely bring a lot of confidence to investors, as it will make it a lot easier to take care of any digital asset investments in the country.
Germany has also managed to become one of the leading markets for crypto-based exchange trade products. The German brokerage teamed up with 21Shares to provide exchange trade products, offering services to around 3Million users countrywide.