First of all, I’d like to wish you a very Happy New Year from the whole team at IFINA.

In my view, 2019 is set to be another transformative year. Specifically, we’re likely to see more fast-paced changed in the cryptocurrency space (very much following the trend of 2018).

These changes will have consequences for investment fund managers. So if you’re interested in investing in cryptocurrencies, please continue to read the rest of this blog.

Increased Regulation & Taxation

An increase in cryptocurrency regulation – and perhaps even taxation – could happen over the next 12 months.

Co-ordinated anti-money laundering regulation is very much on the agenda. A body known as the Financial Action Task Force on Money Laundering (created by the G7) is set to publish guidance in June 2019 on international standards that cryptocurrencies (and exchanges) need to adhere to.

Press reports from December 2018 suggest that the G20 is also looking at an international cryptocurrency tax. How such a tax would be applied is still far from certain – but it’s something that professionals in the cryptocurrency space should be mindful of.

What Does This Mean?

Increased regulation in the cryptocurrency space means two things. Firstly, it’s incredibly likely that the volatility many coins have experienced will start to stabilise.

Secondly, increased regulation means that investment managers need an administrator that is fully up to speed on the changing crypto ecosystem.

If you are establishing your own cryptocurrency investment fund, we should talk. Just email me and we can book a no-obligation Skype call.

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