Best Countries for Setting Up Your Cryptocurrency Fund

Updated on Tuesday 21st November 2017

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The use of cryptocurrency has become popular all over the world and it is now more than just virtual money used to pay in online stores. Cryptocurrencies are most of the time regarded as commodities which can be traded on the stock markets all over the world.

Investment fund managers have also noticed the rapid expansion of cryptocurrencies and have attracted many investors willing to award impressive amounts of money to funds issuing various types of virtual coins. The so-called ICOs (Initial Coin Offerings) are present in countries where the investment funds industry is very developed and well-regulated.

Below we will explore the best countries to open a cryptocurrency fund in, hedge fund startups included.

Regulations related to cryptocurrency funds all over the world

When choosing a country to start a fund in, the legislation is one of the most important factors determining investors to set it up. However, when it comes to cryptocurrency funds things are a little different because even if the use of cryptocurrency is legal, there aren’t countries to have specific laws related to the establishment of this type of investment funds.

Among the countries regulating the issuance of ICOs through investment funds are Luxembourg, Switzerland, the Netherlands and Liechtenstein. However, there are also counties outside Europe which provide for the creation of national cryptocurrencies, such as China and Singapore.

For those interested in how to start an investment fund, our affiliates all over the world can explain the requirements and procedures.

What are the best countries for ICOs?

Foreign investors in search for the best country to set up a cryptocurrency fund in should know that Switzerland with its Zug Crypto Valley region is currently one of the most popular destinations for starting a hedge fund for the ICOs. With one of the lowest taxation systems at local level and the support of the Crypto Valley Association, the Canton of Zug is definitely worth taking into consideration by those who want to establish cryptocurrency funds in Switzerland.

Next to it, Liechtenstein has also created the first Crypto Country Association which in cooperation with the Zug Crypto Valley Association should encourage the creation of cryptocurrency funds in the Principality. The low corporate tax recommends Liechtenstein as one of the best countries to open a cryptocurrency fund in.

Luxembourg cannot be overlooked by investors interested in how to start a fund through which they can issue cryptocurrencies. Luxembourg is the “home” of the European Union, therefore all major decisions and directives to be implemented at EU level will first be enabled here. As one of the most important financial centers in the world, Luxembourg was one of the first countries to allow ICOs. Another reason to choose Luxembourg as a home to cryptocurrency fund is the reduction of the corporate tax rate from 19% to 18% starting with 2018.

If you are in search for the best country to set up a cryptocurrency fund in, do not hesitate to contact us for detailed information.


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