Although, in many ways, bitcoin has become more mainstream – in terms of the involvement of banks and other financial bodies – regulations and reporting requirements are a drag on progress for family offices.

Family offices are increasingly investing in digital assets but struggle to source regulatory support, according to a survey from Ocorian, an organisation which provides services to HNW individuals, family offices, financial institutions, asset managers and corporates.

The global study, conducted among family members and senior executives working for family offices with total wealth of $119.37 billion, found that 86 per cent are including crypto and digital assets in their investment strategies. However, regulatory and reporting challenges stop these family offices from fully embracing crypto as an asset class.

Cryptos and digital assets such as tokens have become more mainstream in recent years, as this article, for example, illustrates. However, there have been setbacks: the price of bitcoin has slumped by more than 42 per cent in the past 12 months, fetching $64,233 as of 14:00 UK time on Friday. However, over the past five years, the price has rocketed by 91.7 per cent. (See more articles on wealth management and cryptos here, here and here.)

Around 70 per cent of those considering crypto and digital asset investments struggle to find third-party outsourcing support for the regulatory and reporting requirements associated with the sector. Less than a third (30 per cent) say it is not a problem. 

This is part of a larger problem for family offices needing to comply with increasingly complex global regulatory demands. Just one in 12 (8 per cent) say they are in a very strong position with meeting global regulatory requirements.

Around three out of four (74 per cent) think they are in a quite a strong position to adapt to complexity and changes in global regulatory demands while 18 per cent say their ability to adapt to regulation is "average."

In February, Ocorian commissioned independent research company PureProfile to interview 200 people in the family office sector. Respondents came from the UK, US, UAE, Singapore, Switzerland, Hong Kong, South Africa, Saudi Arabia, Mauritius and Bahrain.

(Editor's note: We continue to track how the crypto world influences wealth mangement, both as a business and what clients invest in, and are grateful for insights. Email tom.burroughes@wealthbriefing.com)