BaFin's Crackdown: Crypto Investment Rules for Asset Managers

user avatar

by Giorgi Kostiuk

2 years ago

Germany's financial regulator, BaFin, is introducing stringent rules for asset management firms due to the rising popularity and risks of crypto investments.

New Rules and BaFin's Requirements

BaFin has issued a new circular, now open for consultation, outlining legal obligations for asset managers and custodians dealing with crypto investments. Asset managers must apply for an extension of their license to invest in crypto assets through Alternative Investment Funds (AIFs) if their current license does not cover such investments.

Obligations for Asset Managers

Before making crypto allocations, asset managers must adapt and test their investment processes and assess whether a crypto asset is an eligible investment. Companies must ensure they have adequate resources and skilled employees for handling cryptocurrencies. They should provide training for existing staff or hire external experts. At least one manager must have theoretical and practical knowledge of crypto assets.

Opportunities and Risks of Crypto Investments

Some investment funds can allocate funds to crypto assets, but these carry risks such as potential losses from hacker attacks. Spezial-AIFs, available to professional investors including pension funds, can invest in cryptocurrencies. Under the FoStoG, Spezialfonds can invest up to 20% in cryptocurrencies.

While cryptocurrencies offer new investment opportunities, the associated risks require stricter regulatory measures as implemented by BaFin.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Tavus Launches Griffin, a Revolutionary AI for Human Interaction

Tavus introduces Griffin, an AI model that convincingly simulates human conversation during live video calls.

user avatarAyman Ben Youssef

Griffin Outshines Previous AI Models in Live Conversation Tests

Griffin outperforms its predecessor GriffinLite and other AI models in live conversation tests.

user avatarSon Min-ho

Dolphin Token Listed on Upbit with Three Trading Pairs

Dolphin (POD) has been officially listed on Upbit, one of South Korea's leading cryptocurrency exchanges, with three trading pairs: KRW, BTC, and USDT.

user avatarNguyen Van Long

Optimism Releases Opnode Update to Enhance Sequencer Performance

Optimism has launched a new opnode update aimed at improving the performance of sequencers and preventing configuration errors from causing upgrade issues.

user avatarTando Nkube

Optimism Releases Maintenance Update v250 for Opreth

Optimism has released Opreth version 250, a maintenance update that removes legacy commands and includes important security patches.

user avatarKofi Adjeman

Optimism Releases Maintenance Update for Rust-based Faultproof Stack

Optimism has announced a substantial maintenance release for its Rust-based faultproof stack, known as Kona host v180, which was published on October 1. This update is recommended for all chains and focuses on ensuring that two pieces of verification software derive the same answers from the same chain data.

user avatarRajesh Kumar

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.