Set Up a Cryptocurrency Hedge Fund in Singapore
Updated on Friday 02nd February 2018
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2017 was the most important year for cryptocurrency operations. The industry developed at an astonishing rate in numerous countries, including in Singapore. The country is described by experts as being one of the main financial markets for cryptocurrency investments. Investors who want to set up a hedge fund startup in Singapore should also consider that this jurisdiction is highly developed in operations for fintech companies. Several investors have already registered startup companies in Singapore or investment funds, which can be opened as a cryptocurrency hedge fund. One of the aspects that should be concluded for the latter option refers to obtaining special licenses, as presented below.
Regulations for hedge funds in Singapore
As a general rule, a hedge fund is registered for performing investment strategies that will provide a rapid return on investment. In Singapore, the main regulatory agency for hedge funds is the Monetary Authority of Singapore (MAS).
The hedge funds in this country are regulated under the Singapore Code on Collective Investment Schemes, which prescribes two main categories of vehicles:
• hedge funds that make investment strategies through leverage or derivatives;
• investments in non-mainstream assets.
The procedure on how to start a fund in Singapore for this structure requires the issuance of special licenses. In this sense, the investors should apply for:
• Capital Markets Services License;
• Financial Advisers License.
Still, not all types of hedge funds have to obtain a license, as long as special criteria are met.
For example, the fund manager can be exempted from obtaining a license, as long as the fund has less than 30 qualified investors.
Cryptocurrencies in Singapore
Investors have set up numerous businesses by using virtual currencies, from companies with commercial purposes, to specialized investment funds. Singapore already has a coffee shop where the customers can pay by using a cryptocurrency ATM.
Also, other cryptocurrencies investment funds have been set up here and the investors are mainly performing their activities through Bitcoin and Ethereum transactions.
Foreign investors can contact our team of affiliates in Singapore for in-depth information on how to start an investment fund performing investments in cryptocurrencies.