Financial Institutions in Germany can Now Add Crypto Assets to their Balance Sheets

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The German regulators have recently made a big leap for crypto adoption. The financial institutions will now be able to convert as much as 20% of their fund reserves into cryptocurrencies. Nevertheless, the German regulators have also issued warnings for the institutions to proceed with caution. The Federal Financial Supervisory Authority has been attempting to water down the strict views of regulators towards digital assets.

The regulatory body has to harness severe reservations due to the high volatility and risk management threats that are associated with virtual currencies. However, the new regulatory policy showcases the intention of the regulators to cultivate a friendly and more viable environment for cryptocurrency in Germany.

Several financial institutions in Germany manage assets under a special fund called Spezialfonds. According to the trade association of Germany BVI, this asset class accomplished an evaluation of more than 2 trillion euros last year. Under the new policy laws by the German regulators, these behemoth funds will open for exposure into the cryptocurrency space.

Such a move will benefit the price movement for Bitcoin and all other major altcoins. The managing director of the German pension plan association, Klaus Stiefermann, claims that all the companies that are planning to move forward with the one-fifth crypto reserve transfer should move with extra care and take their time before investing the money. He was speaking to journalists at Financial Times.

Coinbase Finally Gets Green Signal to Offer Services in Germany

The news about the accredited institutional investment approval is a huge step. Along the same lines, the largest crypto exchange platform Coinbase has finally got the approval to set up shop in Germany. The US-based crypto market will be able to provide custodial services to German citizens starting this month.

Coinbase is also the first-ever crypto exchange to get a practice license from BaFin. In other crypto-related news from Germany, the students will be able to acquire their graduation diploma in digital form employing blockchain technology. Plus, institutions will also be able to issue digital debt securities powered by smart contracts. Both these services are approved by German legislators to ensure that the country remains a leading technological innovator.


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