Creating Crypto Fund Offshore

[josejaram]

Hi all,

I am trying to understand better my options, I am trying to expand on my crypto trading activity as an individual, by briging crypto from other people (friends, family, acquaintances...), the thing is I don't want to be responsible for the taxes of other people's crypto assets (I'm in Canada). My though is that if I can send crypto to an IBC and then generate profits in crypto, I can return the crypto back and really at no point I will have to deal with FIAT, banks or even overhead/regulations like FINTRAC.

I have been thinking about Seychelles or St.Vincent to create the IBC since they don't require much in terms of accounting or regulations around crypto, specially when its third party money.

So if I go with an IBC what is the best option? Seychelles? St. Vincent? a different one?

In terms of CFC regulations I understand that whatever money is made as profit is taxable, but I am not sure how this works in the crypto space. The comapny would not be making any FIAT money...

any insight around this whole idea is appreciated, thanks!

 

[sonato]

I can return the crypto back and really at no point I will have to deal with FIAT, banks or even overhead/regulations like FINTRAC.

if that is the case I don't think it requires much, looks like a similar business to Exodus.io - just pick a offshore jurisdiction and go for it.

 

[Sols]

My though is that if I can send crypto to an IBC and then generate profits in crypto, I can return the crypto back and really at no point I will have to deal with FIAT, banks

That checks out.

or even overhead/regulations like FINTRAC.

No, you still need to report to Fintrac. Reporting large virtual currency transactions to FINTRAC

In terms of CFC regulations I understand that whatever money is made as profit is taxable, but I am not sure how this works in the crypto space. The comapny would not be making any FIAT money...

Isn't crypto treated as a commodity in Canada? In that case, what you do probably ends up being considered trading in commodities and the CRA will probably try to find some creative way to tax you based on market value of the commodity.

Speak with a lawyer, one that understands crypto and tax.

 

[khinkali]

crypto from other people (friends, family, acquaintances...)

Is there something similar to the Gibraltar "private fund" with very easy set up requirements (as long as the investors are genuinely known to you before you consider establishing the fund) but also transparent for tax when actively trading crypto?

 

[CaptK]

Since bank account is not needed, I would go with SVG or Marshall Islands.
You are still required to keep AML and KYC upto date but it's a lot easier.

Marshall Islands are very good for a DAO type set up as they have just changed regulations to make it easier.

 

[ReMida]

Hi all,

I am trying to understand better my options, I am trying to expand on my crypto trading activity as an individual, by briging crypto from other people (friends, family, acquaintances...), the thing is I don't want to be responsible for the taxes of other people's crypto assets (I'm in Canada). My though is that if I can send crypto to an IBC and then generate profits in crypto, I can return the crypto back and really at no point I will have to deal with FIAT, banks or even overhead/regulations like FINTRAC.

I have been thinking about Seychelles or St.Vincent to create the IBC since they don't require much in terms of accounting or regulations around crypto, specially when its third party money.

So if I go with an IBC what is the best option? Seychelles? St. Vincent? a different one?

In terms of CFC regulations I understand that whatever money is made as profit is taxable, but I am not sure how this works in the crypto space. The comapny would not be making any FIAT money...

any insight around this whole idea is appreciated, thanks!

i'm also interested in some structure to manage crypto investment.
Same problem, i will invest my money, people money and don't want to deal with the taxes.. it will then be up to investors, coming from various countries, to think about their own taxes.

 

[khinkali]

Since bank account is not needed, I would go with SVG or Marshall Islands.
You are still required to keep AML and KYC upto date but it's a lot easier.

Marshall Islands are very good for a DAO type set up as they have just changed regulations to make it easier.

AML and KYC should be OK for a family and friends fund (depending on your family and friends, I guess). Each investor has their own currency and tax issues, so a fund wants to be in a jurisdiction that is tax neutral for crypto day trading.

If SVG, Marshall or anywhere can help with that problem then this is interesting. If it can be a DAO then maybe even more interesting, as it could be more clearly outside regulatory requirements in the investors' countries.

 

[clemens]

I have been thinking about Seychelles or St.Vincent to create the IBC since they don't require much in terms of accounting or regulations around crypto, specially when its third party money.

the banking will be your problem with such entities. It's difficult to find anything useful.

 

[Nitrochetox]

I'm also looking to start a crypto fund what are my best options? crypto friendly and 0 taxes I'm from Spain what type of advisor I need? and what about the website this forum promotes Offshore Bank Accounts

 

[ryanwls]

Since bank account is not needed, I would go with SVG or Marshall Islands.
You are still required to keep AML and KYC upto date but it's a lot easier.

Marshall Islands are very good for a DAO type set up as they have just changed regulations to make it easier.

what do you mean ?
can you explain more about Marshall changes for DAO ?
I though Marshall is not good option as it does not allow financial related activities, which trading falls into

 

[lostguy]

Not sure, but did you try to google search the forum.

site:offshorecorptalk.com crypto fund

 

[JohnnyDoe]

I still have an unused crypto fund licensed in the Caymans, it can be bought for cheap

 

[khinkali]

did you try to google search the forum

To be fair to OP, I've been lurking or a member for 3 years and I have never seen the issues raised by OP (collective investment, not general public, in crypto, not really about banking) addressed usefully.

That's not a criticism of the forum either; I've met with a bunch and paid a few tax lawyers, auditors, offshore advisors. I never quite get the certainty I would expect to get if this was a more traditional offshore issue.

 

[ReMida]

I still have an unused crypto fund licensed in the Caymans, it can be bought for cheap

Can you Pm me?
What will be the amount?