Dacxi Crypto Wealth | This Week in Crypto (27-03 Aug)

This Week in Crypto (27-03 Aug)

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Dacxi

Aug 2, 2021

5 MIN

A Paypal Crypto Team is Reportedly Imminent in Ireland

German Institutional Funds Can Now Hold Assets in Crypto

Asset Management Firm GoldenTree Adds Bitcoin to its Balance Sheet

Bill Introduced in the US Could Have Far-Reaching Impact on Shaping the Crypto Market

 

This week’s updates point towards the growing clout of crypto assets in the global market. While the most well-known, globally leading payment provider PayPal is busy building a crypto assets team in Ireland, German laws are now allowing pension funds and insurers to have 20% of their assets in crypto. A Virginia lawmaker has introduced a bill to streamline the crypto market, while a New York-based multi-billion dollar asset management firm adds Bitcoin to its balance sheet.

A Paypal Crypto Team is Reportedly Imminent in Ireland

Responding to the worldwide growing market of cryptocurrencies, globally known payment facilitator PayPal has started the process of recruitment for several cryptocurrency-focused positions at its Ireland offices. The roles relate to the sub-domains of anti-money laundering, compliance, and business development in PayPal's Dublin and Dundalk locations.  

Paypal had ventured into the market of cryptocurrencies a couple of months back. In October 2020, the company allowed its US customers to buy Bitcoin, Ether, Bitcoin Cash, and Litecoin. In March 2021, the company expanded its service line by allowing its US customers to pay through their crypto assets. A couple of months later, PayPal also opened up the withdrawal of crypto funds to third-party wallets. 

Dan Schulman, the CEO of PayPal, has declared that the company would be launching its crypto-trading services in the UK soon. 

German Institutional Funds Can Now Hold Assets in Crypto

A new law in Germany that became effective from August 2nd, 2021 onwards would allow the German institutional funds to hold up to 20% of their assets in cryptocurrencies. These funds, known as Spezialfonds or Special Funds, can only be accessed by the pension funds and insurers, the institutional investors. The asset under management of all these funds combined is nearly US$2.1 trillion, close to 1.8 trillion Euros.

Concerted efforts to enforce a holistic blockchain strategy in Germany started in 2019. The country promoted a set of 44 adoption measures, realizable by the end of 2021. These adoption measures aimed to ease the process for the digital asset investors in the country. Germany has also emerged as a leading market for crypto exchange-traded products, or ETPs. 

Insurers and similar institutional investors in Germany need to adhere to a strict regulatory framework when deciding on their investment strategies. Analysts believe that it would take some time for the institutional funds to strike the right balance between their willingness to invest in crypto-assets and the necessity to stay within the regulatory framework. 

Asset Management Firm GoldenTree Adds Bitcoin to its Balance Sheet

GoldenTree, headquartered in New York, is an asset management firm that manages nearly $45 billion. As per reports, the firm has added some Bitcoin to its balance sheet. Although the amount of investment remains unknown, reportedly, the firm is also keen to hire staffers who know crypto investments well.

Steve Tananbaum, the founder of GoldenTree, and its partners Deeb Salem and Joseph Naggar also invested in the blockchain-focused VC group Borderless Capital. Borderless has a record of helping and investing in well-known crypto projects of today, such as Alogorand and Securitize.

Bill Introduced in the US Could Have Far-Reaching Impact on Shaping the Crypto Market

United States representative Don Beyer of Virginia has proposed a regulatory and legal framework for digital assets. The title of the bill is "The Digital Asset Market Structure and Investor Protection Act of 2021," and it touches upon all the crucial areas of confusion that might exist in the world of crypto assets. 

For instance, it intends to establish statutory definitions for digital assets and securities. It also wants to demarcate the jurisdictions of CFTC and SEC by clarifying which of them would deal with which area. The bill also wants to bring the digital assets under the purview of the Bank Secrecy Act, classifying them as monetary instruments. Rep. Beyer believes that it would help strengthen transparency, reporting and Anti-Money Laundering enforcement efforts relating to digital currencies.

The bill would also help the Federal Reserve to issue a digital dollar. It has clear-cut plans relating to how frauds could be prevented.