Professional investors interested in the financial industry and who want to set up investment funds in Gibraltar benefit from some of the best conditions in Europe in terms of licensing. Moreover, the government has recently enabled a new legislation targeting the use of blockchain technology, the method used to create virtual currencies. This means that investors now have the possibility of creating investment funds which trade cryptocurrencies.
The most employed type of investment fund which can be used for cryptocurrency trading is the Gibraltar hedge fund.
Below, our company formation agents in Gibraltar explain the requirements for setting up a cryptocurrency hedge fund here.
There two large categories of investment funds under which cryptocurrency funds can operate in Gibraltar:
The requirements for creating these types of funds are quite different in terms of the offerings they can issue, but also to the licensing requirements. However, those who want to set up cryptocurrency hedge funds in Gibraltar must have experience or sufficient knowledge in this field.
Our Gibraltar company formation advisors can explain the legislation applicable to cryptocurrency hedge funds.
As mentioned above, cryptocurrency hedge funds will trade virtual currencies, which means they must prepare initial coin offerings (ICOs) and launch them on the financial markets. This implies for the investors to first submit the prospectus of the fund with the Financial Services Commission in Gibraltar, together with information about the investors.
The investor must also set up a company or a limited partnership in order to be allowed to trade virtual coins in Gibraltar.
Just like in the case of other experienced investor funds, cryptocurrency hedge funds are imposed with a minimum capital of 300,000 euros if they are managed by the investor. This requirement does not apply to private funds.
For full information or assistance in setting up a cryptocurrency hedge fund, please contact our company registration representatives in Gibraltar.