Where to create a cryptocurrency fund: country overview.

Contents:

• Cryptocurrency regulation in Estonia;
• Estonia's advantages as a jurisdiction;
• Cryptocurrency funds in the Czech Republic;
• The advantages of investing in the Czech Republic.

Cryptocurrency regulation in Estonia 

Due to the development of cryptocurrencies and the growth of their value, legislators in many countries pay close attention to them and develop appropriate regulation. At the moment, Estonia is one of the most attractive jurisdictions for doing cryptocurrency business.

Estonian legislation provides for the possibility of registering a cryptocurrency fund, namely a small alternative investment fund. One of the advantages of such a fund is the reduced registration requirements from the state. In addition to the fund, it is also necessary to establish a company - a joint stock company, which will actually be the owner of the fund and all property.

To establish an investment fund, you must:  

• appoint an auditor;
• prepare a package of constituent documents;
• register a joint stock company.
• open a corporate bank account to which the entire amount of the authorized capital is deposited.

It is important to understand that despite the simplified requirements for registering a fund, there are a number of restrictions that must be taken into account, namely:

• The volume of investments in the fund must not exceed 100 million euros;
• The number of investors cannot be more than 150 people;
• Mandatory presence of an office;
• Managing managers must be residents of Estonia.

Advantages of Estonia as a jurisdiction

Estonia has a number of advantages compared to other European jurisdictions, for example:

• Investor Confidential Information;
• Simplified form of registration of the fund;
• Restriction of assets to 500 million euros.

Cryptocurrency funds in the Czech Republic

To establish a cryptocurrency fund in the Czech Republic, you need to open an asset management company. Along with other countries, Czech funds are intended only for qualified investors, but the conditions in favor of the Czech Republic in the area of ??the minimum investment amount differ favorably. In the Czech Republic, the minimum amount is 40,000 euros, which attracts attention from investors. 

There are also no requirements for the director and founders of the management company, unlike other jurisdictions in Europe. 

There are no requirements for the authorized capital of the management company.

The management company in the Czech Republic is also characterized by the following:

• There is no specific restriction on the subject of investment - you can invest in any assets, such as land, currency, cryptocurrency, stocks, and so on;
• It is possible to use financial leverage.

But, as mentioned above, asset management companies in the Czech Republic are intended only for qualified investors, hence there are a number of requirements that must be met in order to be an investor:

• An investor can be a natural or legal person;
• The volume of investments must be at least one million kroons or forty thousand euros;
• Investments must correspond to the investor's financial base, goals, experience, and knowledge of the investor. This information is indicated in the questionnaire when investing as a qualified investor.

Benefits of investing in the Czech Republic 

Above, we have already partially touched upon the advantages of the Czech Republic as a jurisdiction for investment, but these main advantages are not limited to: 

• First of all, there are no requirements in terms of local management, namely, sole full ownership of the foundation by a foreign person is allowed;
• There are no foreign exchange control requirements;
• Investors' rights are protected by local law;
• Opening an investment fund in the Czech Republic complies with international law;
• There is a possibility of concealing the beneficiaries of the fund;
• The Czech Republic is a party to many international treaties against double taxation.

Thus, despite the similarities between the two European jurisdictions - Estonia and the Czech Republic, they have a number of differences. Thanks to this, you can choose the optimal jurisdiction for doing business based on your goals and other details. If you need assistance in setting up an investment fund in the Czech Republic or Estonia, you can contact A4 Law Firm, where you will be provided with highly qualified assistance.