Gibraltar Cryptocurrency Investment Funds
Gibraltar is increasingly becoming a jurisdiction of choice for the set-up of investment funds investing in cryptocurrencies and digital assets.
Gibraltar’s first-mover advantage in developing and bringing into force its Distributed Ledger Technology regulations at the beginning of 2018 has attracted some of the most renowned players in cryptocurrency exchange and custodianship.
Individuals and investment managers are increasingly looking to Gibraltar as a jurisdiction of choice for the set-up of investment funds (Collective Investment Schemes). In particular, Gibraltar’s Experienced Investor Fund (EIF) regime is considered by the industry as the appropriate type of fund to launch such investment funds.
Gibraltar is a crypto-friendly jurisdiction, and its financial services industry is increasingly accommodating investment funds investing in cryptocurrency and digital assets. This has been evidenced by a number of initiatives which include the Gibraltar Financial Services Commission’s statement on funds investing in digital assets setting out the key risks and considerations for such funds; and updates to Gibraltar’s EIF Regulations. Most recently, the Gibraltar Investment Funds Association published a code of conduct for investment funds investing in cryptocurrencies and digital assets which sets out a base code of conduct for the responsible management of funds, the protection of subscriber interests, custody of digital assets, governance, and financial crime risks.
TSN has led in the establishment of an EIF (pre-launch) whose purpose was to invest in cryptocurrencies, digital assets and distributed ledger technology projects. Our team advised on the full set-up requirements of the EIF including drafting and assistance with offer documents, internal processes and controls, key risks, appointment of required EIF Directors, as well as crypto specific issues like security and valuation.
If you are interested in finding out more please don’t hesitate to get in touch with our FinTech team.