Crypto-business is at the peak of its popularity and is of interest to many investors. However, not all of them may have enough time and opportunities to study a new market.
In this case, one of the possible solutions is investing in cryptocurrencies by transferring funds in trust to specialists, who have the necessary knowledge and experience in the field of virtual currencies.
In this article, we will talk about the benefits of registering a crypto fund, as well as where to open a cryptocurrency fund in 2021.
What is a crypto fund?
A crypto fund is a financial organization, that works with private clients and provides them with services for trading and investing in virtual currencies.
Establishing a cryptocurrency fund, subsequently, allows its participants (a team of professional financiers, analysts and consultants) to manage the capital of investors for trading digital currencies in order to profit for both parties.
Among the key advantages of establishing a crypto fund are the following:
- Several types of structures are available (cryptocurrency hedge funds, mutual funds and investment funds);
- Potentially lower business start-up costs than traditional funds;
- The ability to set the minimum amount of an investment independently;
- Ample opportunities for large profits.
Entrepreneurs have the opportunity to open a cryptocurrency fund to receive income from investments in startups, created as a part of an ICO or from trading virtual currencies.
To find out the details, we advise you to order qualified advice on the choice of jurisdiction for the establishment of a crypto fund.
Where to register a cryptocurrency fund in 2021?
Today, in fact, most of these funds are located in America. The establishment of a crypto fund in the United States, in particular the opening of a US cryptocurrency hedge fund, is a promising solution for those, who plan to conduct a business, related to investing in virtual currencies.
If you decide to register a crypto company in America, then keep in mind, that in case of an ICO, you will need to register with SEC (Securities and Exchange Commission). In addition, in order to conduct business legally, a prerequisite will be to obtain a tax number for the cryptocurrency fund, when applying to IRS (US Internal Revenue Service).
Find out the details, you will be helped by personal advice on establishing a crypto fund in the USA.
Opening a cryptocurrency fund in Europe
The establishment of a crypto fund in Liechtenstein, as well as opening of a company for crypto activities in Switzerland, are some of the most popular requests.
Among the main advantages of such a solution are:
- A positive attitude of the authorities towards crypto business;
- Favorable conditions for doing business in the fintech sector;
- Easy access to EU markets;
- The ability to open a bank account for cryptocurrencies or open an account for cryptocurrencies in the payment system.
Registering a cryptocurrency fund in the UK promises considerable prospects for those, who plan to conduct activities, related to digital currencies. This is a respectable and cryptocurrency-friendly jurisdiction, in which you can find interested investors relatively quickly and easily.
Those, who decide to open a crypto fund in Estonia or register a cryptocurrency fund in the Czech Republic also have a number of advantages, including: investment attractiveness, tax incentives and the access to the markets of the EU and CIS countries.
However, these decisions have their drawbacks: a regulation does not apply to other countries, and does not comply, especially in Estonia, with European requirements.
For more detailed information, legal advice on the establishment of a crypto fund in Europe will help you find out.
Opening a crypto business in Asia and island jurisdictions
If you plan to focus on Asian countries, the best solution would be to establish a crypto fund in Singapore, a prestigious jurisdiction with a high level of economic development, actively supporting the development of the fintech sector.
Registering a cryptocurrency fund in Singapore can also be beneficial due to the presence of a favorable tax environment, as well as low requirements for the maintenance of this type of business.
To find out the details, we advise you to get legal advice on opening a crypto fund in Asia in 2021.
As for island jurisdictions, they are in question of viability for a number of reasons, both in terms of sanctions by international regulators and the banking sector.
If you intend to start a business in the field of cryptocurrencies, for the successful implementation of your plans, you will need the support of trusted professionals.
Turning to YB Case experts, you can get comprehensive professional assistance in opening a crypto fund in the USA, European and Asian countries, as well as order competent advice on opening an account for cryptocurrencies and other related services.
To contact us, please fill out the special form or call us at the contacts listed below.