Eternity Law International News Rules for funds investing in cryptocurrencies

Rules for funds investing in cryptocurrencies

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 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.


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.


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.


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

ICO assistance

Our company has significant experience in professional legal support of projects based on blockchain technologies and ICOs. During the existence of the company, our specialists have provided legal services to more than 30 companies whose activities are related to ICO projects, mining, exchanges and cryptocurrency exchangers. In addition, we helped create legally stable structures for...

Types of investment funds

TYPES OF PUBLIC FUNDS According to SIBA, there are four categories of Open Funds: Professional foundation; Private foundation; Public fund; Recognized foreign foundation. Professional foundation Their statutory documents state: the fund’s main interest goes only to “professional investors”; the initial investment of each investor in the fund (other than “exempt investors”) must be at least...

Formation of trust-company in Jersey

The picturesque island of Jersey, nestled in the English Channel, is renowned for its natural beauty and as an economic hub. However, its allure isn’t limited to stunning landscapes and favorable tax regulations; Jersey has also established itself as a global leader in the realm of trusts. The formation of trust arrangements in Jersey has...

Cayman Islands: a financial offshore for the blockchain industry

The Cayman Islands are a British dependent territory. For the whole world, the Cayman Islands are known as well-developed and well-functioning financial services center, the main segments of which are insurance, banking and trusts management. The islands occupy a relatively small area – 264 square meters, however, more than 100 thousand firms are registered there,...

Which is better – the MT4 or MT5 platform?

Regardless of involvement, you’d be unable to have not known about MetaTrader, or MetaQuotes Software. Set up in 2000, MetaQuotes Software Corp. is one of the main designers of programming applications for businesses, banks and trades. Most of representatives across the globe utilize this product, giving customers the chance to exchange on honor winning stages,...

Investment license in Latvia

Like other Baltic countries, Latvia has a very attractive policy for potential investors. Therefore, large companies are trying to invest money in this country. Since the financial market regularly develops, new tools for investing appear. One of these ways is crowdfunding. It appeared because banks check their clients very thoroughly and are not always ready...
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52

New York

1178 Broadway, 3rd Floor #3353 New York, NY 10001


Gediminas Avenue, 44A


Kesklinna linnaosa, Tuukri 19


Lochrin Square, 1


Jacovides Tower, 5 floor


Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai


Level 42, Suntec Tower Three, 8 Temasek Boulevard


20 Martin Place


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7