Crypto fund
How to set up a crypto fund?
If you are looking to create your own cryptocurrency or token-based fund, there are four main questions to consider.
- Can you contact investors who would like to participate in your fund?
- Can you identify the right investment for your fund?
- How will you efficiently process all documents and manage the fund?
- How you will comply with the fund’s ever-growing regulatory requirements?
The first two business / marketing points are straightforward and of course they are important issues to be addressed. But the other two points, also related, are often overlooked and underestimated. Read more at how to set up a crypto fund.
Of course, you need a professional consultant to help you agree on the requirements of your particular jurisdiction when setting up your foundation. You should also be aware of the relevant requirements in the jurisdictions in which you might want to actively participate, and this can be a very costly process.
These initial requirements are just the beginning. The regulations and requirements for such funds and investments are growing almost as fast as the cryptocurrencies themselves. In particular, if you plan on having a smaller fund size, how can you avoid having to create a multi-person compliance department at a cost that exceeds your administrative budget?
We are now seeing an exciting evolution of turnkey systems that manage administrative and compliance requirements for such funds. In the modern sense, think of them as ‘Compliance as a Service’ and ‘Everything else is Administrative as a Service‘. When jurisdictions introduce new processes and documentation requirements, a third-party service provider, tracking all such developments, quickly updates their platform, eliminating the need for you to participate in any part of the process.
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