Financial technology has evolved rapidly in a highly-developed country like the Netherlands. Together with a modern legislation which encompasses EU directives, fintech has also earned an important position in the investment funds industry and blockchain technology is now used to generate cryptocurrencies which can be traded instead of the usual financial instruments, such as securities, futures, units or shares in Dutch companies.
The hedge fund is one of the most popular types of investment funds which is established by most professional investors in the Netherlands and who are now oriented towards the creation of cryptocurrency funds.
Our Dutch company formation agents can offer information on the legal requirements for creating a cryptocurrency hedge fund.
All types of hedge funds can be registered as open-ended or closed-ended structures in the Netherlands, and the same principle applies to the newly appeared cryptocurrency fund, as there is no specific law for them.
In order to create a Dutch cryptocurrency hedge fund, an investor must first register one of the special vehicles used to promote investment funds. Among these, one can choose between investment companies and funds for joint accounts (FGRs), the latter being more appropriate for daily trading activities.
Our company formation advisors in the Netherlands can help with the registration of a FGR used for trading cryptocurrencies.
There are no special requirements related to setting up a cryptocurrency hedge funds in the Netherlands other than the ordinary ones, such as appointing a fund manager and obtaining the approval of the Dutch Authority for Financial Markets.
There are also exemptions related to the licensing requirements of all types of hedge funds which usually apply to cryptocurrency funds, as the assets administered by the manager are usually below the 100 million euros.
Cryptocurrency hedge funds are relatively new on the Dutch market and if you need more information on the legislation applicable to them, please feel free to contact our company registration representatives. We can also help you set up a cryptocurrency business in the Netherlands.