Crypto as an asset protection strategy

[offshore xpert]

Hi All,
From what I see the offshore industry (companies and bank accounts) for asset protection are not effective anymore. You have to set up different structures in several jurisdictions, enhanced KYC, banks requesting excessive documentation, no correspondent banking, CRS, etc. It's more of a headache than a solution.

So I was thinking if any of you had any experience using cryptos or crypto licenses to build an asset protection strategy. For example, obtain a crypto license form Estonia, convert funds to stable coins or other coins that offer privacy like Monero, and have your crypto license (ewallet) be the custodian of your ecurrencies. In this case you would be the only client of the license (as a Trust or Foundation) so no need for fancy software and accounting would be kept to the minimum.

Let me know if you have done something similar or if you have any other ideas.
Thanks.

 

[Golden Fleece]

Cryptocurrencies are speculations, not investments -- so you cannot use them for "asset protection." In fact, they represent the exact opposite of asset protection. Placing up to ten percent of your net worth into cryptocurrencies as a speculation or a hedge is one thing, but exchanging your accumulated wealth for them is downright crazy.

 

[khinkali]

@Golden Fleece I think PAXG gold tokens backed by Paxos Trust Company look pretty safe. I assume they make you go through KYC to redeem them for gold delivery, but you can buy and sell the tokens on a bunch of exchanges.

@offshore xpert yes you can keep wealth in crypto instead of companies. The issue is if you want to do business or buy things in OECD or similar countries and need to show source of funds or satisfy an unexplained wealth order. I don't think "my wealth came from Monero holdings in a licensed custodian wallet" is going to satisfy them.

 

[CaptK]

I would disagree crypto can be used for asset protection. If your money is clean from the beginning it's a store of wealth like buying gold. Obtaining a licence for this would be an expensive way to do it but it also depends on the holdings.

I'm currently working on that exact problem. We are building an EMI for a client that gives you a portfolio type statement at the end of the year. He and his community of stackers are sick of getting accounts closed.
So think Wirex but with a bit more. This structure will then be able to be used by Trusts and Foundations to store crypto on their own wallet in their name along with fiat. If you go to a big bank and talk about a Foundation or Trust with crypto as a store. You will leave the building by the back door lol.

Crypto is not going anywhere and when the big banks finally submit to it is when we will see big changes.

AML/KYC is our biggest headache at the moment especially when one can't prove his source of funds or have used tumblers and XMR.