While the crypto market is still in its early stages, the number of asset managers offering funds investing in cryptocurrencies and companies using blockchain or distributed ledger technology ("DLT") is constantly growing. With few exceptions, however, most of this growth is occurring outside the European Union. This opens the question of whether regulation that specifically addresses the new technology could change that. Other jurisdictions, such as Switzerland, France, Gibraltar, Liechtenstein, Malta, and the United States, have adopted laws that promote the use of DLT or at least provide greater regulatory clarity for the industry.

This Jones Day White Paper analyzes the current regulatory and economic environment for crypto funds and provides an overview of the general functioning of DLT, also touching upon its potential impact on financial markets and infrastructures.