Family offices struggling to source regulatory support for crypto investment

Family offices are increasing their focus on investment in digital assets, but are struggling to source regulatory support, research from Ocorian has shown.

Its study of family members and senior executives working for family offices found that 86 per cent were moving to include cryptocurrency and digital assets in their investment strategies.

However, it highlighted that regulatory and reporting issues were preventing family offices from fully embracing cryptocurrency as an asset class.

Seven in 10 (70 per cent) of those considering crypto and digital asset investments were finding it difficult to access third-party outsourcing support for regulatory and reporting issues, while 30 per cent said it was not an issue.

Ocorian noted that the issue around cryptocurrencies and digital assets was part of a wider problem for family offices in complying with increasingly complex global regulatory demands.

Fewer than one in 10 (8 per cent) family offices felt they were in a ‘very strong’ position to meet regulatory requirements, while 74 per cent believed they were in a ‘quite strong’ position.

Almost a fifth (18 per cent) admitted their ability to adapt to regulation was average, suggesting a need for more support.

“Family offices are looking to integrate digital asset classes into their investment strategies at pace, but the complex and evolving associated regulatory and reporting obligations cannot be ignored,” commented Ocorian global head of regulatory consulting, Rebecca Thorpe.

“Global regulators are struggling to keep up with the speed of change, but so are the more traditional service providers.

“This makes sourcing expert regulatory and reporting support agile enough to realise the potential benefits challenging.”

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