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New report: crypto-assets and how they should be regulated

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Investors favour Switzerland, UK and US for crypto-assts

Potential crypto-asset investors favour established jurisdictions such as Switzerland, the UK and US as the best regulatory environments for trading and investment operations in this new asset class, according to a survey by investment firm London & Oxford and OMFIF.

The survey published today in the ‘Global crypto-asset regulatory landscape’ report shows that more than 40% of investors favoured these three locations.

The report provides insights into prospects for institutional investment in crypto-assets, highlighting which jurisdictions are most favourable or restrictive. Other respondents believe Australia, Bermuda, Hong Kong and Malta are the most attractive jurisdictions.

Investors suggested that tokenisation of larger, more illiquid assets such as real estate, and the creation of products such as bitcoin exchange traded funds, make the crypto-asset market more attractive.

‘London & Oxford is proud to team up with OMFIF in producing the first in what we aim to become a series of reports on new investment categories,’ said Paul Newton, founder and chairman of London & Oxford. ‘We place emphasis on looking at best practice in regulation.’

OMFIF is adopting a threefold strategy to follow up the report’s findings. This involves convening roundtables and carrying out research with industry experts to examine future growth areas and increase incentivisation for more investment involvement. OMFIF will seek to work with the Financial Stability Board, the International Organisation of Securities Commissions, the Basel committees and other regulators to elucidate how risks can be mitigated.

The survey underlines investors caution on crypto-assets. Only 38% of respondents have invested in this asset class, while 15% have invested in initial coin offerings.

Respondents included asset managers, family offices, blockchain hedge funds, crypto-platforms and sovereign funds.

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