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Question UK resident looking to set up a restrictions-free crypto fund — what are my options?

Bank Accounts, Company Formations, Tax Planning, Residency Solutions, and more


New member
Mar 4, 2023
United Kingdom
Hi everyone — firstly, thanks for creating these helpful forums, it's an awesome resource!

I am a UK citizen looking to create a crypto investment fund. The investments will not be in crypto itself, but require crypto to invest in (it has something to do with the casino industry). The fund will only accept and pay out cryptocurrencies such as BTC and ETH — we will not touch fiat as far as customer funds are concerned.

This is a legitimate business, and while I would love to incorporate directly in the UK, the costs and restrictions (such as applying with the FCA) are prohibitive. Director's privacy is also crucial in case the fund becomes very large and successful. I would like to incorporate offshore (at first glance, BVI seemed ideal, but maybe you guys have some better ideas). Banking ties so that I can cash out my own money are preferred but not necessary as crypto is fine too. I want to do everything legit — well, as legit as possible — without having to pay thousands to authorities just to get set up.

I guess my questions boil down to the following:
  • Which jurisdiction(s) would be ideal for this sort of setup? (BVI or Caymans look pretty good to me)
  • Will I be able to legally operate the company while living in the UK or will I have to move?
  • Will the UK's laws and restrictions apply to my offshore company? For example, if I'm taking in client funds to invest without the FCA's approval while being fully resident in the UK, but the company and funds are held offshore, can I get into trouble?
PS. I do understand that living in the UK might mean I'm liable to pay UK taxes on my offshore gains, but that's not too much of a problem for me as I'm willing to make that trade off to keep the life I have here. I will only move unless it's necessary for the operation to be legal.

Thank you all so much!
Last edited:


Active Member
Jul 11, 2019
Honestly? You will still technically be breaking the law anyway.
If your operation is legit AND you forget about onboarding UK residents you miiiight be fine with an offshore entity hidden behind nominees etc but if you get bit enough - the regulators will come to collect some fines.
If you want to onboard UK residents, forget about doing it this way - worst case, you are getting arrested.


New member
Mar 4, 2023
United Kingdom
I am happy to ban UK residents from the service. I will be doing the same for US residents. I'm expecting the fund to grow to $5m to $15m in the long run, so not small but not massive either.

I don't want to do anything illegal, so like I said, if absolutely necessary to run a legal operation, I am happy to move abroad for a few years. Just trying to figure out what the best option is.


New member
Mar 4, 2023
You do not have to do it as investment fund. It will be much easier to do it as corporation in Czech republic or Slovakia or Hungary or Poland. And sell shares in combination with a special class corporate bonds. Mkney will become property of a company and you can transform it to crypto and invest however you like. All eastern european countries have easy or almost none regulations for offering /selling shares and corporate bonds of own corporation.
It can work like investment fund without having investment fund if structures properly.
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Anonymous Service - No KYC Legal Structures & Bank
Jan 11, 2023
Feels like a ChatGPT reply lol
I don't speak native English, I'm just through a translator, I don't know, maybe I have to speak a little rude so they know I'm not an artificial intelligence but hey, thanks!

About your previous answer
The summary is simple:

Both the British Virgin Islands (BVI) and the Cayman Islands are both jurisdictions that have a good stable system and a great reputation for privacy and investor protection.

However, you yourself should review it more thoroughly to find out which one suits your needs, mate.

About what you say legally operating the company, while you live in the UK, well, if you want to stay in the UK you will have to comply with local laws and regulations in the UK that includes taxes and FCA approval and everything else that is necessary.
In order for the institution to allow you to operate from the UK, if you want to operate legally you will have to comply with FCA regulations regarding cryptocurrency investments, otherwise you would not be doing things legally and you would have to transfer and manage your company from the place where you intend to formalize the entire offshore structure (if it is the objective of doing everything in the most legal way)

Similarly, while you may be able to run the business from the UK, you may need to have a physical presence in the offshore jurisdiction to comply with certain legal requirements.

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