As of 1 July 2021, domestic Special AIFs can invest in Crypto Assets

With the aim of improving the German fund location’s future and international competitiveness, domestic Special AIFs with fixed investment conditions are to be able to invest up to 20% of the fund’s assets in Crypto-Assets (Sec. 1 para. 11 sentence 4 of the German Banking Act (KWG)) from July 1, 2021. This is provided for in the government’s draft of the so-called Funds Location Act (FoStoG), which is intended to implement corresponding amendments to the German Investment Code (KAGB) and the German Investment Tax Act (InvStG). The German Parliament (Bundestag) passed this law on 22 April 2021 The Federal Council (Bundesrat) is expected to give its approval before the end of May 2021.  This new regulation could not only result in significant new investments, but also contributes to the steadily growing acceptance of Crypto Assets in Germany as investment objects in high demand worldwide. However, the acquisition of Crypto Assets for mutual funds will not yet be permitted.