Funds Investing in Cryptocurrencies

The surge by investors looking to convert parts of their savings into cryptocurrencies has led to a large demand for regulated funds which would be in a position to invest fiat currencies in exchange for equity in companies active in the DLT industry or directly in DLT assets through a secure and transparent manner.

The majority of such funds to date have been set up in jurisdictions which impose very strict regimes or otherwise which provide no protection at all. Malta is seeking to establish itself as a prime location for such funds by providing for clear supporting conditions that would apply to existing funds which will opt to invest in virtual currencies.  This will enable credit institutions to allow the provision of banking facilities to such funds and thus enable the industry to flourish through fully licensed banks which are willing to participating in this activity.

BDO is in a position to assist in the setting up of the applicable collective investment scheme and advise constantly on any legal developments directly affecting this sector. The trading of cryptocurrencies by institutional investors will only increase in volume and Malta can be the prime jurisdiction to conduct such activity within a well-defined and secure legal framework.