(Beincrypto) Germany’s financial watchdog BaFin has allowed institutional investors to allocate up to a fifth of their assets in cryptocurrencies.
The move by Germany’s regulator aims to balance the risky and speculative nature of digital assets with the desire to enhance the growth of financial services technologies.
Managers will be required to weigh the risks of putting their clients’ money in the volatile crypto asset class.
The decision by the Germany regulator follows a move by lawmakers to grant permission to entities seeking to issue debt securities backed by blockchain technology.
German authorities have been proactive in crypto developments and introduced a legal framework for asset managers, removing them from the same rules as banks.
There are increasing concerns among regulators in other countries such as the US and UK over the rise of illicit activities in poorly or unregulated crypto industry.
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