Family offices are steadily increasing their focus on cryptocurrencies and digital assets as part of their investment strategies. This is according to a study conducted by Ocorian among business family members and senior family office executives across 16 countries, who collectively manage $119.37 billion in wealth.
According to the research, 86% of respondents are taking steps to incorporate these types of assets into their portfolios. However, the rollout of these strategies is being conditioned by growing regulatory demands and the difficulty of finding specialized providers capable of responding to the compliance and reporting obligations associated with this asset class.
Regulation: The Main Obstacle Moving Forward
The report highlights that 70% of family offices considering investments in cryptocurrencies and digital assets face difficulties accessing external services to help them manage regulatory compliance and reporting obligations. Only 30% consider this aspect not to be an issue.
The lack of specialized support comes within a broader challenge related to increasing global regulatory complexity. Barely 8% of family offices consider themselves “very well prepared” to face global regulatory requirements, while 74% state they are in a “fairly solid” position, though acknowledging that the regulatory landscape demands constant adaptability. Furthermore, 18% rate their level of preparedness as merely “average,” underscoring the need to strengthen specialized support.
Industry Demands More Specialized Advisory Services
Rebecca Thorpe, Global Head of Regulatory Consulting at Ocorian, points out that family offices are incorporating digital assets at a rapid pace, but warns that “the complex and rapidly shifting regulatory and reporting obligations attached to these assets cannot be ignored.”
In her view, regulators are struggling to keep pace with market innovation, and traditional service providers do not always possess the capacity required to support this evolution. Consequently, finding agile, specialized advice has become one of the primary hurdles for high-net-worth investors seeking to capitalize on the opportunities offered by digital assets.
The study concludes that as the market for cryptocurrencies and other digital assets matures, the availability of regulatory compliance solutions will be a key factor in accelerating their adoption into family office investment portfolios.
