Setting Up Gibraltar Crypto Funds

Gibraltar is a leading jurisdiction for crypto funds, offering a robust regulatory framework, speed to market, and flexibility that appeals to investors and fund managers alike. With a mature ecosystem supported by the Gibraltar Financial Services Commission (GFSC), a sophisticated jurisdiction with all the right tools at the disposal of a dedicated funds team at Hassans, setting up a fund in Gibraltar is a streamlined, efficient and effective process.

Why Choose Gibraltar for Crypto Funds?

Simplicity and Flexibility
Gibraltar offers two primary fund structures:

• Regulated Experienced Investor Funds (EIFs): Ideal for high-net-worth individuals, investment professionals, and those with significant investment experience.
• Unregulated Private Funds: More flexible with fewer regulatory requirements

Gibraltar’s approach is straightforward, with no diversification requirements or limits on borrowing and leverage. This flexibility extends to the choice of asset classes, including crypto assets, making it an attractive option for crypto fund managers.

Speed to Market
Launching an EIF in Gibraltar involves no regulatory downtime. Funds can commence operations based on a Gibraltar legal opinion, without the need for pre-approval from the GFSC. This allows for rapid market entry, a crucial advantage in the fast-paced world of cryptocurrency.

Tax Neutrality
Gibraltar offers a tax-neutral environment with no capital gains tax or VAT, allowing funds to be set up either as tax-neutral or transparent entities. This is a significant advantage for investors looking to optimise their tax efficiency. In addition to this tax neutrality, Gibraltar offers a series of other advantages in the tax context – see our Tax Information page for details.

Diverse Fund Structures
Fund promoters can choose from various structures, including:

• Private Limited Companies
• Protected Cell Companies (PCCs): Suitable for multi-strategy managers, allowing for the segregation of assets and liabilities across different cells.
• Limited Partnerships
• Protected Cell Limited Partnerships: This innovative structure combines segregated cells with the limited partnership.

No AIFMD Compliance
Post-Brexit, Gibraltar is not subject to the EU’s Alternative Investment Fund Managers Directive (AIFMD), thus bypassing the €100m/€500m thresholds. This provides a more flexible regulatory environment for fund managers.

Setting Up Your Crypto Fund with Hassans

At Hassans, our experienced team headed by Aaron Payas specialises in setting up and managing crypto EIFs. We handle all aspects of the process, ensuring that your fund meets all necessary requirements, including the preparation of an offering memorandum. Our services extend to appointing local EIF directors, auditors, and administrators, as well as assisting with the setup of bank accounts with crypto exchanges and custodians.

At Hassans, we believe in providing a holistic service to clients and instructing solicitors. We focus on speed, efficiency and compliance.

In the current funds climate, Gibraltar is well positioned as a small, common law, non-EU jurisdiction whilst geographically in mainland Europe within the Central European Time zone.

Gibraltar ticks all the boxes as a funds jurisdiction and Hassans provides the personalised approach you are looking for.

For more information and to discuss your specific needs, please contact Aaron Payas at aaron.payas@hassans.gi.