Open a Cryptocurrency Hedge Fund in Malta
Updated on Tuesday 21st February 2023
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Why start a cryptocurrency hedge fund in Malta?
Setting up a hedge fund startup operating in the field of cryptocurrencies in Malta can be an appealing idea, as large cryptocurrency operators are relocating their investment activities in the small insular state, due to the fact that the local authorities are creating a suitable legal framework addressing to this sector, by enabling secure regulations related to brokerages, exchanges and asset managers.
Why register a hedge fund startup in Malta?
The jurisdiction in which an investment vehicle operates is of high importance for the investors, as the legal framework, alongside with the political and economic stability can increase the success of any type of investment. The legislation for investment funds in Malta is one of the most comprehensive at a European level and those who are interesed in how to start a fund in this country operating as a hedge fund can benefit from the following:
- Malta is a member state of the European Union (EU), which means that the local regulatory framework includes regulations which are compliant with the EU’s law;
- the country is a member state of reputable international financial institutions, such as the International Monetary Fund, the Committee of European Securities Regulators and the International Organization of Securities Commission;
- the main authority regulating the activity of investment funds – the Malta Financial Services Authority (MFSA) has a proactive and flexible approach on the licensing of investment vehicles;
- the country benefits from a wide range of treaties for the avoidance of double taxation and it also enables an attractive taxation scheme for investment funds.
Our magazine covers a lot of types of entities that can be used for the creation of investment funds. Among them, there is also the segregated portfolio company in the Caymans. The legal form has some distinctive characteristics which makes is appropriate for various types of funds that can operate outside its country of registration.
What are the advantages of setting up a cryptocurrency fund in Malta?
Malta allows the registration of a wide range of investment funds that can conclude transactions by using various types of virtual currencies, such as Bitcoin, Litecoin, ZCash or Dash. The fund registered in Malta can enter into numerous investment objectives – for example, mining activities, or gaining exposure to cryptocurrency investments.
Businessmen are invited to contact our team of partners in Malta, who can detail the main procedures related to the registration of a cryptocurrency hedge fund and who can advise on the main licensing procedures imposed for a specific investment activity. Our affiliates can also provide consultancy services on the documentation that has to be prepared in this case.