The private equity platform, Unbound Fund allows investors to secure Portuguese and EU citizenship via Bitcoin-driven investment.
A newly established private equity fund – Unbound Fund – is promoting the pioneer Bitcoin-driven golden visa avenue onboarding overseas investors in earning Portuguese and European Union (EU) citizenship.
A recent X post by the project chief executive and co-founder Alessandro Palombo disclosed the possibility of overseas investors acquiring Portuguese/EU citizenship by indirectly holding Bitcoin valued at least €500K.
The platform touts the Unbound Fund as the pioneer “Web3 fund” participating in the Portugal-based golden visa initiative. The program allows foreigners to invest at least €500,000 ( translating into $544,000) worth of Bitcoin in local companies and assets to secure residency status. Also, the investors will earn EU citizenship without residing in the southern European country.
The Golden Visa initiative caught the attention of many during the COVID-19 pandemic. However, it triggered questions regarding its security and facilitating money laundering and drew criticism for fueling housing prices. In 2023, Portuguese officials considered scrapping the program before retaining it, though excluding real estate investments.
UnBound Fund Avenue to EU Citizenship
The participants in the Golden Visa initiatives must retain 60% of the portfolios within the Portuguese companies. Unbound Fund pledges to comply with this directive by transferring investments via local “special purpose vehicles” (SPVs). The SPVs will run under the supervision of fund advisor Unbound Capital jointly with fund manager Green One Capital, said Palombo.
The SPVs will buy Bitcoin exchange-traded fund (ETF) shares via BlackRock instead of direct BTC purchase and holding. Palombo explained that indirect BTC acquisition considers security and simplicity in the process. The executive admitted the need for legal compliance since such golden via funds often have stringent regulatory requirements.
Unbound investors should each acquire shares of a minimum value of €500,000. Palombo added that the fund will subject its operations to independent audits. He assured that the volatility of Bitcoin prices would not influence investors’ golden visa eligibility, offering invaluable caution when the investment value tumbles below €500,000.
Palombo confirmed Unbound registration on May 24 as a private equity fund on May 24, having satisfied the requirements set by the Portuguese Securities Market Commission (CMVM). While the fund remains authorized per the CMVM’s online database, Unbound is inactive.
CMVM head of press Susana Domingos confirmed the Unbound is set under the provision of the Asset Management Regime, which was guided by prior communication with the agency. She acknowledged that the fund would operate under the CMVM supervision.
Eligibility of Golden Visa Initiative
Domingos indicated that the Unbound Fund is not subject to the formal authorization act by CMVM. The press officer suggested that eligibility for the Unbound Fund rests upon the competent authority granting the visas, not CMVM.
The Portuguese Agency for Integration, Migration and Asylum (AIMA) administers the golden visa program. Global Citizen Solutions chief executive Patricia Casaburi said that AIMA is responsible for reviewing and analyzing the eligibility of funds indirectly investing in BTC, BTC ETFs, or gold.
Casaburi disclosed that the migration consultancy currently has 35 Portuguese golden visa funds with a range of investments. She admitted awareness of another crypto fund that is soon to launch.
Palombo illustrated that Unbound’s lawyers from the Lisbon-based law firm Morais Leitão confirmed the fund’s eligibility in its legal opinion.
The Unbound investors must meet the visa eligibility requirements for other funds. Notably, the golden visa process requires biometric screening, a clean criminal record, and passing basic language tests.
Portuguese golden visa holders should lock the investment for 60 months and spend a fortnight every two years. Unbound investors can utilize immigration lawyers available through the fund or by choice. The fund pledges to assist investors in navigating the golden visa application process.
Palombo is optimistic that inbound can generate interest among digital asset investors. Additionally, the fund aims to illustrate the broader potential that crypto harbors towards facilitating movement globally.
