Launch Your Cryptocurrency Hedge Fund in Switzerland
Updated on Saturday 27th January 2018
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In Europe, Switzerland is the top destination for launching a cryptocurrency hedge fund. The country stands out as the main European center for cryptocurrency investments and businessmen starting a hedge fund may choose Zug for this purpose, as this canton provides a suitable environment. It is important to know that numerous investors were drawn to the city of Zug for investments in cryptocurrencies and other fintech activities, and now, due to the large number of businesses registered in this field, the region is known as the Zug Crypto Valley.
What is a hedge fund in Switzerland?
In Switzerland, the main regulatory framework for hedge funds is given by the Collective Investment Schemes Act (CISA) and other additional regulations imposed by the Swiss Financial Market Supervisory Authority (FINMA). As a general rule, Switzerland is not a top destination for hedge fund startup, but the country stands out as an important jurisdiction for the management and the distribution of foreign vehicles registered as hedge funds.
Swiss funds, including hedge funds and cryptocurrency hedge funds, fall under the regulations of FINMA.
Swiss cryptocurrency hedge funds in 2017
2017 represented a year with numerous investment activities related to cryptocurrencies in Switzerland. A novelty that was achieved in 2017 refers to the registration of the first cryptocurrency fund, launched at the level of June 2017. The vehicle – Cryptocurrency Fund, will offer the first regulated fund at a global level for investments carried out in virtual currencies.
The fund was launched in Zug, which, few months later - in September 2017, launched a new service available for its citizens, related to the creation of a digital identity for the Ethereum blockchain technology. Zug was the first city at a global level which introduced this new service for cryptocurrency activities.
The fund will invest in the following types of virtual currencies:
• other renowned virtual currencies.
The fund is addressed to qualified investors and it was approved by FINMA.
Businessmen interested in how to start a hedge fund may contact our team of affiliates in Switzerland for consultancy services on this matter.