Open a Cryptocurrency Hedge Fund in Switzerland
Open a Cryptocurrency Hedge Fund in SwitzerlandUpdated on Tuesday 31st March 2020
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Switzerland is the top European destination for starting a cryptocurrency hedge fund. Its primary locations for this activity are Zug and Zurich. The latter is the city in which entities representing popular virtual currencies have set their headquarters (Ethereum and Tezos), while Zug is recognised as the Crypto Valley of Europe.
More importantly, Switzerland is also the country in which businessmen have performed the highest level of investments through initial coin offerings (ICOs) in Europe. Between January - October 2017, investors have raised $ 550 million through ICOs and our team of Swiss lawyers can advise on the main legal procedures related to these activities.
Swiss cryptocurrency funds
The first cryptocurrency fund in Switzerland was launched in June 2017 in the canton of Zug, as a Swiss based company, created by bankers and investors. The fund was approved for investment activities by the main regulator of the industry, the Swiss Financial Market Supervisory Authority (FINMA) and it was created with the purpose of offering a safe and regulated environment for investors interested in cryptocurrency activities.
The following video offers a short presentation on the Swiss cryptocurrency hedge fund:
As a general rule, most of the investors performing investment activities in virtual currencies are high net worth invidividuals or institutional investors (banking institutions included).
Through ICOs, a manner through which start-up companies can raise funds to generate cryptocurrencies, were obtained funds with a value of over $ 1 billion at a global level (in 2017). As more and more investors prefer to register a company in Switzerland in the region of Zug, the country benefits directly from cryptocurrency investments.
The jurisdiction is actively involved in creating a legal framework for cryptocurrency usage and ICOs and our team of lawyers in Switzerland may provide in-depth assistance on the regulations available up until this moment.
Regulations for hedge funds in Switzerland
Businessmen who want to open a company in Switzerland or an investment fund are required to follow the regulations imposed for their specific activities. In the case of an investment vehicle registered as a hedge fund, the following regulations apply:
• Collective Investment Scheme Act;
• Collective Investment Scheme Ordinance;
• Ordinance of FINMA for Bankruptcy of Collective Investment Schemes.
Other regulations can be imposed to Swiss hedge funds and investors are invited to contact our law firm in Switzerland for more details on this matter.