The German Bundesrat has approved a new piece of legislation – The Fund Location Act – which aims to regulate emerging asset classes for Germany’s finance industry, including crypto assets such as Bitcoin (BTC).
The new law was first proposed and approved in the Bundestag (the lower house in Germany’s parliament system) back in April, and with the recent approval in the Bundesrat the bill passed into law yesterday.
The new law could facilitate a massive influx of German financial capital into the crypto industry, with some analysts speculating this latest move will open the door to $415B in potential investment in cryptocurrencies.
Increased interest in cryptocurrencies in Germany and Europe has led to a flurry of regulatory activity this week, with the passage of this bill following Monday’s decision by BaFin (German financial watchdog) to licence the CoinBase exchange for operations in the country.
Deutsche Bank began institutional adoption of cryptocurrency assets this year, with their economists predicting a troubled future of inflation in the USD. The bank has suggested that Bitcoin is simply too important to ignore.
This comes amid large scale moves into cryptocurrencies – especially BTC – by institutional finance in a 2021 bull run that has seen billions in capital flood into the industry in an attempt to hedge Covid-19 inflation and the debasement of the USD.
Furthermore, following the SEC’s move to avoid regulating cryptocurrencies this year, the passage of this legislation will bolster the ongoing wave of interest in cryptocurrency adoption and trading regulations in Europe.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.