Episode 15: Where should you license your crypto fund or exchange?
Release Date: 09/16/2021
Institutional FX Uncensored
Episode description:
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Episode description:
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Natallia Hunik and Praveen Kumar dive into the hot topic of evolving crypto regulations and what the firms should be doing to stay within the lanes as global crypto regulations are evolving.
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Natallia Hunik discusses challenges of fundraising for a hedge fund with Laurence Yang, overachiever and successful hedge fund manager from Australia.
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Natallia Hunik discusses running an FX brokerages in Europe with Ricardo Evangelista, CEO of ActivTrades Europe. How do European brokers market to regions given regulatory restrictions, how do they navigate the ever changing regulatory landscape and how are European clients differ from the rest of the world. This and much more about running an FX brokerage in Europe in this episode with Ricardo.
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Natallia Hunik discusses with James Cameron, Chief Risk Officer at iSignthis, independent card acquirer and e-money institution, publicly listed in the Australian and Frankfurt Stock Exchange (ASX: ISX | FRA: TA8) since 2015, the reasons behind the FX industry struggles with getting banking and payment channels. Besides, James discusses the rationale behind considering the FX business as an ultra high risk by banking institutions, and what can FX businesses do about it.
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Natallia Hunik discusses all things FX and financial media with Andrew Saks. We talk about journalistic standards in the industry, discuss the goods and bads of the current coverage and uncover opportunities.
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Natallia Hunik discusses M&A activity trends in the margin FX sector with Demetris Tsingis, founder of Fincap
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Dave Floyd, successful trader and fund manager, shares his life journey as a trader and how he was able to build a successful business. We will talk about treating FX as an asset class, copy trading, investment opportunities in the space and his views on FX trading platforms.
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One of the toughest challenges for any hedge fund to overcome is figuring out how to scale the strategy. Jim Simons' fund Renaissance Technologies, started in the commodities and futures markets, but could not scale its strategies in those markets past $1 billion AUM. FX is a very fragmented market and the challenge of scaling a strategy is even more relevant as your AUM grows.
info_outlineNatallia Hunik and Praveen Kumar dive into the hot topic of evolving crypto regulations and what the firms should be doing to stay within the lanes as global crypto regulations are evolving.
They discuss various jurisdictions for setting up crypto business and its pros and cons.
Guest:
Praveen is the founder and CEO of Belfrics Group. He has over 15 years of experience in financial markets with specific expertise in OTC and exchange-traded derivatives. He has served multiple financial institutions in India, the Middle East and Far east and has provided liquidity solutions to various exchanges.
Highlights for discussion:
- Praveen shares some details of the recent transaction in which his Crypto Exchange company Belfrics has been acquired by a US publicly listed company, and the multiples people could expect in the crypto business; (About the transaction: https://www.globenewswire.com/news-release/2021/08/26/2287147/0/en/Life-Clips-Closes-Belfrics-Group-Acquisition.html)
- Recent report from PWC on Crypto hedge funds indicates that the total assets under management (AuM) of crypto hedge funds globally increased to nearly US$3.8 billion in 2020 from US$2 billion the previous year. That constitutes 0.095% of the total AUM managed by the hedge funds. Around a fifth of hedge funds are investing in digital assets (21%); the average percentage of their total hedge fund AuM invested in digital assets is 3%. More than 85% of those hedge funds intend to deploy more capital into the asset class by the end of 2021.
Given this huge potential to grow, Praveen was asked about his thoughts on potential crypto hedge funds’ future and shared his opinions. - As an industry pioneer starting in FX and ventured out to crypto early on, Praveen is followed by a lot of talent from the FX industry who comes after his footsteps and moved on to crypto projects. Many are setting up their own crypto funds. According to the same PWC report, Cayman Islands, US, Gibraltar, BV and Lux are the most popular jurisdictions for FX funds. Which jurisdictions give one the biggest bang for the buck? Praveen shares his insights on this important question
- What are the top 3 things for the new crypto fund managers to consider when starting their own crypto fund? Praveen shares his opinion.
- Banking is challenging for FX firms, how is it for crypto? How hard is it to acquire banking relationships for crypto firms and what do they need to keep in mind? Praveen talks about this in-depth.
- Is BTC still the major traded crypto currency for the hedge funds?