Last Monday our Managing Director Anabel Mifsud was in Zurich attending the first day of the Swiss Valor Crypto Summit where she was invited to discuss ways to invest in Crypto.
Over the past recent years we have seen many managers looking for solutions to manage Crypto currency strategies for their clients. Many have found that the most efficient way to do it is through regulated fund structures. Here are some benefits for setting up a regulated fund to manage Crypto Currencies:
1) Investors Familiarity with the structure – A regulated fund with all the independent service providers and officers involved is something investors are familiar with which gives them comfort when investing their money;
2) More sophisticated investors looking at Crypto – Whereas in the first years of Crypto Currency funds investors used to be primarily close HNW contacts of the manager himself we’re now seeing institutions, fund of funds and more sophisticated regulated investors looking into this new asset class. These investors expectations are high in terms of due diligence they may impose on target investment vehicles. A regulated fund provides the right governance including independent and regulated service providers they would expect when investing.
3) Regulatory Authorities more familiar with this new asset class – More jurisdictions are open to different extent to such strategies having gone through a learning curve over the past years. Malta was one of the first jurisdictions allowing regulated funds to invest in Crypto currencies and also the first later to allow regulated full scope AIF to invest in such assets.
4) More regulated service providers in the space – Over the past years the range of service providers has increased massively with more and more looking to become regulated. Also, more traditional Depositories/ Custodians are exploring more and more this asset class. This makes it easier for investors to invest in such fund.
How we can assist:
1) Structuring of your fund including guidance in relation to the ideal set up;
2) Provision of Compliance and Company secretarial Services;
3) Undertaking of MLRO role;
4) Fund administration services including regulatory reporting
Fexserv Fund Services Ltd. was the first in Malta to obtain a license for a regulatory Crypto Currency Fund in Malta on behalf of a client and since then has been very active in the sector, including:
1) Various seminars organized discussing asset class in Zurich, London, and Berlin;
2) Participated in webinars on the subject
3) Recorded a podcast together with Claire Cummings from Cummings Pepperdine which can be accessed through this link: https://cummingspepperdinepeppods.buzzsprout.com/1906329/11646141-cryptocurrency-in-malta-cumming-s-pepperdine-s-crypto-questions-with-anabel-mifsud-md-at-fexserv-fund-services-ltd
4) Since 2018 Fexserv is a member of the Multichain Asset Managers Association (MAMA) one of the first associations in Switzerland bringing together lawyers, managers and other experts on this subject.
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