Virtual Asset Compliance
Crypto assets/virtual assets have seen exponential growth over the last few years and have generated a strong interest as a potential new asset class for investment fund managers.
Engaging in activities relating to virtual assets such as tokens, cryptocurrencies or e-wallets raises numerous questions from professionals under the supervision of the Luxembourg regulatory authorities as to their opportunities and concrete possibilities.
Embracing the challenges raised by innovative asset classes such as crypto assets, the CSSF and has committed to promote an open, technology neutral and prudent risk-based regulatory approach.
Activities involving virtual assets entail specific risks pertaining to their volatility, liquidity, technological risk, counterparty, custody or even reputation. Any entity under the supervision of a regulator (CSSF or AED) interested in pursuing an activity involving crypto assets bears the responsibility to carry out a thorough due diligence and to carefully weigh up the risks and benefits associated with the proposed assets. Also unregulated entities should have an interest in having a solid AML/CFT framework in relation to cryptocurrencies, aligning themselves to a best practice approach recognised by the regulators.
Internal governance must ensure sound and prudent management of all the fund’s activities including a clearly defined risk-taking process and risk appetite assessment.
Each authorised Investment Fund Manager (“IFM”) intending to manage an alternative investment fund, regulated or not, investing in virtual assets, must also obtain prior authorisation from the CSSF for such a strategy.
OMEA Advisors offers clients expert advice and support utilising our specialist knowledge of compliance, regulation and Web3.0 technology in order to help fund managers with the creation, approval and management of their institutional regulated infrastructure.
We can help your business with:
Developing a risk strategy concerning virtual assets, including notably the definition of the risk appetite and the overall framework for risk-taking and risk management.
Ensuring your business develops and maintains a sustainable business model that considers all regulatory and governance related risks pertaining to virtual assets.
Taking on RC (Responsable du Contrôle) mandates for your virtual asset fund
Delivering KYC and KYT on cryptocurrencies and tokens using a state of the art technology solution that will be adapted to your business
Keeping you updated with the latest regulations and technical requirements from a regulatory point of view
To discuss your company's needs please get in touch.