Germany passed New Crypto law: Fund Location Act

Germany passed New Crypto law: Fund Location Act

BUSINESS | ECONOMY | July 7, 2021 | WOZINGA NEWS

Germany passed New Crypto law: Fund Location Act

  • This new law in Germany can bring US$415 billion in potential crypto investments.
  • Deutsche Bank in Germany will adopt cryptocurrency assets this year.

By Elah Mae Ariate Wozinga Journalist

Germany passed New Crypto law: Fund Location Act

Germany has passed a new law known as the Fund Location Act. It states that all specialized investment funds can invest up to 20% of their US$ 2 trillion assets in cryptocurrency such as Bitcoin, according to Coindesk.

This new law in Germany can bring US$415 billion in potential crypto investments

The bill was first proposed by the Bundestag, a house in the German parliament, in April, and it has now become law. This new law is a significant power move because it will direct a significant portion of Germany’s financial capital into the cryptocurrency industry.

According to some market experts, this law has the potential to generate $415 billion in crypto investments.

While the United Kingdom tightens its grip on cryptocurrency, according to Analytics insight. The rest of Europe, including Germany, is intrigued. They are rapidly developing crypto regulations, and BaFin. Also, Germany’s Federal Financial Supervisory Authority, has now licensed CoinBase exchange for all crypto operations in the country.

Deutsche Bank to adopt crypto assets

Meanwhile, Deutsche Bank in Germany will adopt cryptocurrency assets this year after economists in the country predicted the negative effects of USD inflation. Bitcoin, according to the bank, is too important to ignore. In addition, Deutsche Bank announced that it will provide custody and brokerage services to its institutional clients.

In 2021, the cryptocurrency market, specifically Bitcoin, experienced a bull run as institutional finance invested billions in the industry. This hedge against the inflation caused by COVID-19 and the depreciation of the USD.

While Europe’s largest economy adjusts to Bitcoin. According to the report, India is seeing an increase in cryptocurrency investments despite a lack of regulations. The Reserve Bank of India has expressed its opposition to cryptocurrency. However, the Indian government’s position remains unclear.

India has the world’s largest youth population, and bitcoin is particularly popular among Millennials and Generation Z. In addition, India’s finance minister has declared that the country will not ban all cryptocurrency transactions, based on Analytics Insight.

People who actively monitor the cryptocurrency market believe that this is an open invitation for government-backed digital coins, also known as Gov Coins.

Do you believe that this law will boost the cryptocurrency market needs in the country?

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