How can funds invest in digital assets in accordance with KAGB?

This question is complex and needs to be considered in a differentiated way. Depending on the structure of the fund, various requirements must be met in order to be able to invest in digital assets. This in turn can restrict the types of investment opportunities.

In addition, investment managers and asset management companies must ask themselves the question of the suitability of the connected partners. For example, when investing in crypto assets in the form of crypto currencies, the commissioned KAGB depositary must meet the requirements for custody of crypto assets, and the additional permission for crypto custody in accordance with Section 1 (1a) No. 6 KWG is therefore required.

The joint report by Mr. Eric Romba, partner at Osborne Clarke (Germany - Osborne Clarke), and FinPlanet's factsheet is intended as an overview for investment managers, asset management companies, KAGB depositories, crypto depositories and other interested parties.

The FinPlanet team is happy to be your point of contact. If you have any legal questions, we are happy to get in touch with Mr. Romba and his team.

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For more information, we also refer to Osborne Clarke's articles:

1. Crypto-related assets as investment opportunities under the KAGB - Osborne Clarke Fintech (osborneclarke-fintech.com)

2. Crypto-related assets as investment opportunities under the KAGB — Part 2: Closed and open domestic public AIF - Osborne Clarke Fintech (osborneclarke-fintech.com)

3. Crypto-related assets as an investment opportunity under the KAGB - Part 3: Other investment funds and investment funds in accordance with UCITS Directive - Osborne Clarke Fintech (osborneclarke-fintech.com)