Eternity Law International — News — Rules for funds investing in cryptocurrencies

Rules for funds investing in cryptocurrencies

Published:
February 19, 2020

The Maltese government has developed a set of rules, namely, rules for funds investing in cryptocurrencies.

A few years ago, most states did not recognize cryptocurrency as a financial instrument. It was believed that these units are used in a minimum of operations.

Today, without Bitcoin, Riple, Litecoin, Cardano and other units, it is impossible to imagine modern life, the implementation of transactions. Forecasts are made for cryptocurrency, courses are set.

It should be noted that cryptocurrency is not only a powerful means of payment. Specialists from the economic sphere see it as an excellent tool for investing.

This is due to the fact that cryptocurrency exchange rates grow faster than fiats. Therefore, investing in the development of cryptocurrencies is profitable.

MALTA – PRE-OPENER REGULATING THE ACTIVITY OF FUNDS INVESTING IN CRYPTO CURRENCIES

Malta is a country with established algorithms for registering various companies, organizations, investment funds. The MFSA regulator decides on such issues is considered a modern and universal tool for controlling the sphere of finance.

Thanks to the successes within the country, the stable economic situation, the GDP indicator rose above 12%. However, the government does not stop there. On October 23, 2017, a set of rules was published according to which the activities of hedge funds are regulated in the country.

We are talking about organizations involved in investing and supporting cryptocurrencies (Advice on the regulation of collective investment in electronic currencies). The beginning of the action is November 10, 2017. In extreme cases, another agreement was adopted.

The essence of the draft adopted rules dealing with the control and operation of Malta cryptocurrency funds:

  • building a new concept for protecting investor rights;
  • providing tools to promoters, legal consultants and other persons participating in the activities of the cryptocurrency fund;
  • compilation of corporate structure guidelines;
  • full support;
  • development and audit of documentation;
  • capital requirements for opening funds for the development of cryptocurrencies.

MALTA FUNDS AND FUND RULES: WHAT IS IT

It should be noted that the adopted rules make it possible to invest in the development of cryptocurrency only to specialized investment funds – PIF. That is, the right to engage in projects is granted to qualified investors.

To become a cryptocurrency investor, you must provide an amount of 100,000 euros to the investment fund. It is also mandatory to fill out a declaration and indicate that the personal assets of investors start at 750,000 euros.

All providers serving crypto funds should be open in the sector where the already known MFSA operates. We are talking about the states of the Eurozone and countries that have signed certain agreements.

Also, according to the new rules, the investor is obliged to participate in the management of companies specializing in modern technologies, including cryptocurrencies.

The investor submits an application for a license, after which he waits three months. Moreover, an already issued permit can be extended by authorized bodies after checking personal information or available papers.

It is also possible to register as part of collective companies, open a listing on the stock exchange.

NEW PROSPECTS FOR INVESTORS

Investing in cryptocurrencies is a great way to attract new investors and use funds for an IPO (relevant for organizations involved in innovative technologies and blockchains).

In addition, there is a chance of conducting ICOs with the participation of government agencies.

Known fact: many cryptocurrency investors understand the difficulties that arise when exchanging large sums of money (cryptocurrencies for fiat and vice versa). In addition, state-owned banking institutions are still reluctant to associate with such operations.

Attracting cryptocurrency exchanges with the necessary documentation would help to solve this problem.

WHERE TO GET ADDITIONAL INFORMATION ABOUT MALTA FUNDS

Many are interested in how much it costs to register a fund or company for investing in cryptocurrencies in Malta.

To do this, you should write a letter and send it to our e-mail. Our manager will provide detailed advice, offer the best option, determine the registration period and will participate in the escort.

You can also call the numbers listed on the site.

We work with the best specialists in Malta who have solid experience and relevant qualifications for such operations. They provide a wide range of services: administration, audit, management, etc.

You will also learn about alternatives that will best suit your needs.

Our company is based on experience with this sphere and Eternity Law International specialists will be happy to рrovide you with assistance in resolving this issue.

You could be interested

Gaming license in Kenya

Gambling Licensing in Kenya: Overview and Global Comparisons Kenya has appeared as a prominent hub for betting in the African region thanks to its innovative supervisory pattern. The BCLB predicted this kind of functioning, including all kinds of wagering activities, such as casinos, betting and online gaming. Additionally, this state is tailoring to the growing...

Full Information You Should Know About Estonian Gambling Licensing

This state opened its Penates to gaming industry in the mid-90s. To ensure fair play, the industry is governed by a set of specific basics and norms. First, a participant in market wanting possessing status of full-fledged participant needs getting Estonian gambling license – kind of official permit giving grounds for performing gamble activities. We will...

Withdrawing funds from PNB bank

Withdrawal of funds of a bank PNB Help with payments of funds at PNB bank. Most recently, on August 15, 2019, the Financing and Capitalization Market Commission decided to suspend the work of PNB bank. From now on, every account is frozen, all available ATMs and online banking do not work. And this, in turn,...

Unique Philippines VASP offer

Cryptocompanies need to determine the right place of incorporation to directly start working on the market. Most co-founders of such legal entities choose island countries, as most often their leadership is welcoming to companies. Such regions do welcome foreign investment, and many people think in particular about setting up a crypto company on Philippines for...

Bulgaria Authorised Crypto Companies

The rapid expansion of the cryptocurrencies has opened up new avenues for organisations worldwide. Financiers willing a strategic and regulated sphere to establish their tokenized ventures often turn to this direction. Known for its business-friendly policies, low taxes, and robust legislative scheme, this jurisdiction proposes unparalleled capabilities for tailoring, setting up, and functioning this type...

How does an Australian Financial Services License work?

An AFSL is a crucial term for legal entities running in the Australian sector of finances. The official permission serves as a regulatory framework put in place by ASIC to ensure that companies maintain high standards of conduct and professionalism. Obtaining a license is not only mandatory for certain financial activities, but also demonstrates a...

Related posts

Cyprus investment funds

Cyprus, due to its strategic geographical location, is a significant international financial center attracting investors and entrepreneurs from all over the world. This is due to a stable economic environment, attractive tax policies and a harmonized regulatory framework that meets international standards. This jurisdiction provides many investment opportunities, including the establishment of an investment fund...

EU Sets First Rules to Regulate Cryptocurrencies

In light of quickly emerging new projects stored on blockchain, the EU sets the first rules to regulate cryptocurrencies. EU authorities agreed on the adoption of legal mechanisms that would oversee the cryptomarket, obliging businesses to apply for authorizations to operate and provide services to users. Although the proposal still has to go via Brussel’...

Investing 2020

Investing 2020: the most profitable investment spheres. Due to the fact that the market conditions of the international capital market are constantly changing, every year investors face new challenges. The question how to invest and not make a mistake, but to get additional profit, is becoming more and more often. As of today, the economic...

Investment funds

Investment funds (hedge). How to open Investment funds – companies engaged in collective investment. Their essence is the accumulation and saving of funds of private and legal entities for further investment through the purchase of securities and shares. For what purposes funds are created? Opening investment funds will help to solve a number of issues...

Investing in agriculture

The issue of investing in agriculture requires detailed consideration. There are many options for this kind of investment projects on the markets. More experienced investors are looking for profitable and promising options for investing money. Investing in agriculture is considered a stable investment option. A sufficient number of organizations and private entrepreneurs come to this...

Cryptocurrencies in the UAE

Investors, traders and cryptocurrency issuers face an ambiguous regulatory climate in the United Arab Emirates (UAE). On the one hand, the UAE, in particular Dubai, is pursuing a state policy of introducing new industries and innovations, and the promotion of distributed ledger technology (including Blockchain) is a priority for the government. At the same time,...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: