Solana-Based Jupiter Faces Regulatory Roadblocks in EU
Jupiter faces regulatory hurdles as it ventures into crypto investments, highlighting the fragmented regulatory landscape across the European Union (EU).
In a recent report by the Financial Times, the challenges posed by varying regulations among EU member states for fund managers eyeing crypto assets are underscored.
One significant setback for Jupiter occurred when its compliance department prevented its investment team from including a cryptocurrency exchange-traded product (ETP) in an Irish Ucits fund due to Ireland’s ban on crypto investments. This incident sheds light on the differing regulatory approaches within the EU, with countries like Germany adopting a more permissive stance compared to Ireland’s strict prohibition.
Despite no direct regulatory intervention, Jupiter had to retract the investment in 21Shares’ Ripple XRP ETP in its Ireland-domiciled Gold & Silver fund. This instance reflects the complexities and challenges asset managers face in navigating the regulatory landscape surrounding crypto assets in the EU.
The contrasting regulatory approaches within the EU further complicate matters for asset managers like Jupiter. While Ireland prohibits crypto exposure in Ucits funds, Germany allows such investments, as evidenced by DWS’s Fintech fund holding an Ethereum ETP.
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The disparity highlights the need for clarity and uniformity in regulations to foster a conducive environment for crypto investment within the EU.
In conclusion, the challenges encountered by Jupiter exemplify the broader struggles faced by asset managers in the EU regarding crypto investments. Regulatory disparities persist, creating barriers despite the growing interest and potential benefits of crypto assets.
Addressing these inconsistencies is crucial for establishing a harmonized regulatory framework that supports innovation and investment opportunities in the EU.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
