Global Digital Finance (GDF), the digital finance and crypto assets industry membership body, believes Germany’s new crypto investment rules will “open the gates” to wider adoption. The rules state that crypto assets can account for up to 20% of total assets in Spezialfonds, or special funds. GDF expects other regulators to follow Germany’s lead, calling the move “very provocative”. The law went into effect 2 August.
Analysts are estimating that Germany’s new law could account for up to USD400 billion in crypto investments by Spezialfonds, which currently hold over USD2.1 trillion in assets.
GDF’s EMEA director of regulatory affairs, Lavan Thasarathakumar, stated: “This opens the gates for mass adoption. Increased institutional investment into crypto assets will pave the way for new products and services to be produced and for more innovative solutions that can take the crypto industry on to a new plain and deliver on some of the benefits that it has promised. The key component of the law is that it sets clear guidelines under which financial institutions will be expected to invest in crypto assets. This gives confidence and a mandate for institutions to be able to invest money into crypto.”
GDF also believes the SEC’s move in the US to allow special purpose broker dealers to invest in crypto assets is a starting point for wider crypto adoption.