Germany to allow crypto investments with institutional funds

Up to one-fifth of funds targeted at institutional investors can now be allocated toward cryptocurrencies. German regulators still advise caution to asset managers when dealing with crypto and such volatile digital assets.

The new rules came into effect at the beginning of the month. They align with Germany’s Federal Financial Supervisory Authority’s (BaFin) attempt to neutralize its stance on crypto investments. In the past, the financial watchdog stressed its concern over the risky and volatile nature of the crypto market. This new development intends to show that the regulator nonetheless wants to encourage the future growth of emerging financial technology.

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