🎓Crypto Fund Distribution Business Proces

1. Obtain operating license: Depending on the location/regulatory requirements of fund distribution, different licenses are involved. For example, Hong Kong, which has a higher compliance threshold, must apply for a special virtual asset management and fund distribution license from SFC, while offshore regions such as Cayman Islands and BVI become popular choices for funds due to relatively low compliance threshold, and are generally handed over to professional fund administration and law firms as agents Application. Or create an open and transparent fund through a smart contract.

2. Determine the fund elements: Similar to traditional finance, the fund contract is made according to the regulatory requirements: including the fund's investment scope, investment strategy, opening frequency, relevant fees such as management fees, performance compensation accrual method and accrual ratio, etc.

3. Raising funds: The mainstream cryptocurrency funds are generally USD-based funds (the currency used to calculate the net value of the fund is USD), but the specific subscription funds can be legal tender, stable coins USDT/USDC, or even cryptocurrencies with better liquidity such as bitcoin and ethereum. The funds raised will be deposited in an escrow account (Vitatoken cooperates with UnionBank and the funds are escrowed by the bank).

4. Day-to-day operations: Mainly including redemption management, trading, risk monitoring, dividend and fee accrual, and compliance reporting.

5. Fund termination: Similar to daily redemption management, fund termination includes liquidation of investors' shares and funds, and withdrawal. Settlement of transactions and custody accounts.