Imagine obtaining EU citizenship through Bitcoin investments. Sounds futuristic? Unbound Fund is making it a reality. This innovative private equity fund allows overseas investors to earn Portuguese and EU citizenship by indirectly investing in Bitcoin. Let’s dive into how this works and what it means for crypto investors.
What is the Unbound Fund?
Unbound Fund is a “Web3 fund” participating in Portugal’s golden visa program. This program grants residency and EU citizenship to foreigners who invest a minimum of €500,000 (approximately $544,000) in Portuguese companies or assets, without requiring them to live in the country.
How Does it Work?
Here’s a breakdown of how Unbound Fund enables Bitcoin investment for citizenship:
- Minimum Investment: Investors must purchase shares worth at least €500,000 using fiat currency.
- Investment Structure: Unbound Fund invests in Bitcoin ETF shares through BlackRock, rather than directly holding BTC. This is due to security and regulatory considerations.
- Special Purpose Vehicles (SPVs): To comply with Portuguese regulations, investments are transferred to domestic SPVs under the supervision of Green One Capital and Unbound Capital. These SPVs must keep at least 60% of their portfolios in Portuguese companies.
- Regulatory Compliance: The fund is subject to independent audits and operates under the supervision of the Portuguese Securities Market Commission (CMVM).
Why Bitcoin ETFs?
Alessandro Palombo, co-founder and CEO, stated that using Bitcoin ETFs instead of direct Bitcoin holdings is for “security and simplicity,” as golden visa funds come with “heavy regulatory requirements.”
The Portuguese Golden Visa Program: A Brief Overview
Portugal’s golden visa program gained popularity during the COVID-19 pandemic. It allows non-EU citizens to gain residency by making significant investments in the country. While attractive, these programs have faced scrutiny due to concerns about security, money laundering, and rising housing prices.
In 2023, Portuguese officials initially planned to scrap the program but later decided to continue it, excluding real estate investments.
Key Benefits for Investors
- EU Citizenship: Gain the right to live, work, and study in any EU country.
- No Residency Requirement: Obtain citizenship without having to live in Portugal.
- Diversification: Invest in Bitcoin through a regulated and structured fund.
- Assistance with Application: Unbound assists investors with navigating the golden visa application process.
Potential Challenges and Considerations
- Regulatory Scrutiny: Golden visa programs are subject to changing regulations and political pressures.
- Investment Risks: Bitcoin price fluctuations could impact the fund’s value, although Unbound ensures visa eligibility isn’t affected by drops below €500,000.
- Eligibility Verification: The Portuguese Agency for Integration, Migration and Asylum (AIMA) ultimately determines the eligibility of investments for the golden visa program.
Expert Opinions
Patricia Casaburi, CEO of Global Citizen Solutions, notes that the eligibility of funds indirectly investing in Bitcoin or Bitcoin ETFs depends on AIMA’s reviews. She also mentioned the existence of another crypto fund about to launch, indicating growing interest in this area.
Requirements for Visa and Citizenship
Unbound investors must meet standard golden visa requirements, including proof of investment and biometric screening. Obtaining citizenship requires a clean criminal record and passing a basic language test.
Investors must hold their investments for five years and spend at least 14 days every two years in Portugal.
Unbound’s Vision
Palombo aims to demonstrate crypto’s potential to facilitate “freedom of movement” around the globe and generate interest in Portugal among crypto investors.
Conclusion
Unbound Fund offers a novel approach to obtaining EU citizenship through Bitcoin investments. While potential challenges and regulatory considerations exist, the fund’s innovative structure and compliance measures make it an attractive option for crypto investors seeking global mobility. Keep an eye on AIMA’s reviews and evolving regulations to make informed decisions about this unique opportunity.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.