Tue, Mar 26, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Custody of assets for a cryptocurrency fund is different to a standard fund

Tuesday, April 03, 2018

Komfie Manalo, Opalesque Asia:

The custody of assets for a cryptocurrency fund is very different to that for a standard fund, said Lucy Frew, a partner at international law firm Walkers at the latest Opalesque 2018 Cayman Roundtable.

She added that technically, it is not the cryptocurrency itself that is held in custody. But rather, it is the unique private key in respect of any cryptocurrency transaction that is the true asset.

"Loss of a private key is an unacceptable scenario for a fund manager as there is no other way of accessing the cryptocurrency. Auditors of cryptocurrency funds need to be highly specialized, not only in audit but also blockchain technology, in order to be capable of verifying ownership of cryptocurrency," she said.

According to Frew, the surge in global cryptocurrency markets over 2017 has been remarkable. From a legal perspective, it is notable that the response of worldwide regulators is not only inconsistent but in flux.

She explained that the legal and regulatory framework at the level of the cryptocurrency fund is the same as for other types of alternative investment funds. Nevertheless, a cryptocurrency strategy does present particular administrative and operational challenges that must be addressed both in practice and in legal drafting. The concepts around the traditional hedge fund se......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Half of real estate investors are considering investing in opportunity zone funds (OZFs) in 2019[more]

    Laxman Pai, Opalesque Asia: A survey found that 51% of real estate investors were considering investing in opportunity zone funds (OZFs) in 2019, while a further 12% are interested in the longer term. A less widely publicized part of the 2017 Tax Cuts and Jobs Act in the US was the creation

  2. New Launches: WhiteBox duo plans to launch new event-driven distressed debt fund, UBP unveils credit long/short fund, Man GLG launches high yield fund for ex-Schroders manager Scott, Caisse de d?p?t et placement du Qu?bec launches $250m AI fund, Accel Partners raises $2.5bn across three funds[more]

    WhiteBox duo plans to launch new event-driven distressed debt fund From Bloomberg: Whitebox Advisors LLC colleagues Cindy Delano and Amit Patel have teamed up to form a hedge fund focused on event-driven and special situations that could arise as credit markets tighten. Invictus Glob

  3. Morgan Creek Digital makes strategic investment in Ikigai Asset Management[more]

    Laxman Pai, Opalesque Asia: Morgan Creek Digital Assets (MCDA) has made a major new investment in another crypto-related firm. The hedge fund is committing to a new fund launched by Ikigai Asset Management (IAM). MCDA, founded by Mark Yusko, Jason A. Williams, and Anthony Pompliano, said in a

  4. People: Head of top hedge fund association to step down, Former State Street Exec to lead Equity Trust, Affiliated Managers names Thomas Wojcik next chief financial officer, MoraBanc restructures following Goldman Sachs partnership, Franklin Templeton expands emerging markets equity team[more]

    Head of top hedge fund association to step down From The Hill: Former House lawmaker Richard Baker, who has led the Managed Funds Association (MFA) for more than a decade, announced Wednesday that he will step down at the end of the year. MFA, which represents the hedge fund industr

  5. Al Breach's hedge fund rockets to $1.4bn in assets[more]

    From Intelli News: A hedge fund founded by former Russian star strategist Al Breach has seen its assets under management rocket by 70% last year to almost $1.4bn, bne IntelliNews can reveal. Gemsstock's client assets climbed to $1.37bn by September 2018 from $830mn for the prior year, according to a