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Has any one tried to use offshore companies to trade on binance, bybit?

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Super

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Has any one tried to use offshore companies to trade on binance, bybit?

I am a UK resident where crypto can be traded on coinbase but not on binance, bybit. I trade futures.

I don't mind paying full tax, etc. Just want to trade on those.
 
#5
Super said:
Has any one tried to use offshore companies to trade on binance, bybit?

I am a UK resident where crypto can be traded on coinbase but not on binance, bybit. I trade futures.

I don't mind paying full tax, etc. Just want to trade on those.
Click to expand...
Why would you want to trade on these platforms?
 
#8
daniels27 said:
If you want it legal, you need to register them in UK as foreign company and then you pay tax as if it was a UK company. You can read the rules here
https://www.gov.uk/register-as-an-overseas-company
Click to expand...

Thanks, paying tax is not an issue. I want everything to be legal.

Let's say I trade crypto on those sites under this registered offshore company. I am also considering opening a copy-trading service that allows other people to follow/copy my trades and pay me like 5% if they make a profit, etc. https://www.bybit.com/copyTrade/
And if this is successful endeavor, I might then move the company to say dubai and base it there and pay lower tax, legally.
Is it possible to move this company to say Dubai or Cyprus or what have you later? Sort of like what Dyson did when he moved to Singapore?
 
#10
Super said:
Thanks, paying tax is not an issue. I want everything to be legal.

Let's say I trade crypto on those sites under this registered offshore company. I am also considering opening a copy-trading service that allows other people to follow/copy my trades and pay me like 5% if they make a profit, etc. https://www.bybit.com/copyTrade/
And if this is successful endeavor, I might then move the company to say dubai and base it there and pay lower tax, legally.
Is it possible to move this company to say Dubai or Cyprus or what have you later? Sort of like what Dyson did when he moved to Singapore?
Click to expand...
FCA classes Copy Trading as portfolio or investment management
Click to expand...
So you would need authorization from the FCA to offer copy-trading .
 
#11
Super said:
Let's say I trade crypto on those sites under this registered offshore company. I am also considering opening a copy-trading service that allows other people to follow/copy my trades and pay me like 5% if they make a profit, etc. https://www.bybit.com/copyTrade/
And if this is successful endeavor, I might then move the company to say dubai and base it there and pay lower tax, legally.
Is it possible to move this company to say Dubai or Cyprus or what have you later? Sort of like what Dyson did when he moved to Singapore?
Click to expand...
Yes, you can move the company. But please be aware that you will be charged exit tax on the goodwill you create in UK.
 
#12
aniglo22 said:
So you would need authorization from the FCA to offer copy-trading .
Click to expand...
That's a bummer! Copy-trading is just a part of using those sites. I mean individual traders (not just businesses) offer/allow copy-trading of their trades and they just trade regularly and just have to click a checkbox to allow for copy-trades of their trades. Do I really have to inform FCA about this myself, when really i m just trading. Obv, i will pay any taxes on anything i make from copy-trading.
 
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#13
Super said:
That's a bummer! Copy-trading is just a part of using those sites. I mean individual traders (not just businesses) offer/allow copy-trading of their trades and they just trade regularly and just have to click a checkbox to allow for copy-trades of their trades. Do I really have to inform FCA about this myself, when really i m just trading. Obv, i will pay any taxes on anything i make from copy-trading.
Click to expand...
What is this question? If the rules say, you must, then you must. Of course, you can just not do it and hope nobody ever finds out. If could work for days, weeks, months, years or even decades. But that does not make it more legal.

We have so many discussions like this here. About people running businesses in countries they are "just visiting" etc. Of course, you can ignore the rules and hope not to be caught. But then, please do it in silence, don't talk about it, don't show off on the street, don't drive too fast while drunk, etc. As long as nobody investigates you, it probably will work. If you behave badly, people or the police will check you and find out. There is no point asking here either, you won't be able to claim that you followed your "consultant's advice" etc. when they catch you and blame it on user 77 on OCT.
 
#14
My question was do I really have to legally inform FCA? I definitely will only follow the legal routes. I wasn't asking anything illegal so I am not worried. I will reiterate my question: offering copy-trading on a stockbroker or crypto exchange is different from say opening a full fledged hedge fund. Copy-trading sites handle all the compliance stuff and get people who will be copying to sign disclosures that they know risks, etc. So it's not like I am opening a big hedge fund. So I was wondering if legally I am really required to inform FCA about it, when likely it will just be part of my legal trading on that site/exchange and that site/exchange handles customer disclosure forms, risk forms, etc (with tax paid in uk even if company is offshore).

So a valid legal question. I am not opening a hedge fund! Just trading and allowing others to copy me per their own risk per the copy-trading rules of the biggest crypto exchange in the world, binance, bybit. So I was doubting that I would need to inform FCA when i am not taking any funds, etc like a hedge fund would.

daniels27 said:
What is this question? If the rules say, you must, then you must. Of course, you can just not do it and hope nobody ever finds out. If could work for days, weeks, months, years or even decades. But that does not make it more legal.

We have so many discussions like this here. About people running businesses in countries they are "just visiting" etc. Of course, you can ignore the rules and hope not to be caught. But then, please do it in silence, don't talk about it, don't show off on the street, don't drive too fast while drunk, etc. As long as nobody investigates you, it probably will work. If you behave badly, people or the police will check you and find out. There is no point asking here either, you won't be able to claim that you followed your "consultant's advice" etc. when they catch you and blame it on user 77 on OCT.
Click to expand...

My question was do I really have to legally inform FCA? I definitely will only follow the legal routes. I wasn't asking anything illegal so I am not worried. I will reiterate my question: offering copy-trading on a stockbroker or crypto exchange is different from say opening a full fledged hedge fund. Copy-trading sites handle all the compliance stuff and get people who will be copying to sign disclosures that they know risks, etc. So it's not like I am opening a big hedge fund. So I was wondering if legally I am really required to inform FCA about it, when likely it will just be part of my legal trading on that site/exchange and that site/exchange handles customer disclosure forms, risk forms, etc (with tax paid in uk even if company is offshore).

So a valid legal question. I am not opening a hedge fund! Just trading and allowing others to copy me per their own risk per the copy-trading rules of the biggest crypto exchange in the world, binance, bybit. So I was doubting that I would need to inform FCA when i am not taking any funds, etc like a hedge fund would.
 
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#15
Super said:
My question was do I really have to legally inform FCA? I definitely will only follow the legal routes. I wasn't asking anything illegal so I am not worried. I will reiterate my question: offering copy-trading on a stockbroker or crypto exchange is different from say opening a full fledged hedge fund. Copy-trading sites handle all the compliance stuff and get people who will be copying to sign disclosures that they know risks, etc. So it's not like I am opening a big hedge fund. So I was wondering if legally I am really required to inform FCA about it, when likely it will just be part of my legal trading on that site/exchange and that site/exchange handles customer disclosure forms, risk forms, etc (with tax paid in uk even if company is offshore).

So a valid legal question. I am not opening a hedge fund! Just trading and allowing others to copy me per their own risk per the copy-trading rules of the biggest crypto exchange in the world, binance, bybit. So I was doubting that I would need to inform FCA when i am not taking any funds, etc like a hedge fund would.



My question was do I really have to legally inform FCA? I definitely will only follow the legal routes. I wasn't asking anything illegal so I am not worried. I will reiterate my question: offering copy-trading on a stockbroker or crypto exchange is different from say opening a full fledged hedge fund. Copy-trading sites handle all the compliance stuff and get people who will be copying to sign disclosures that they know risks, etc. So it's not like I am opening a big hedge fund. So I was wondering if legally I am really required to inform FCA about it, when likely it will just be part of my legal trading on that site/exchange and that site/exchange handles customer disclosure forms, risk forms, etc (with tax paid in uk even if company is offshore).

So a valid legal question. I am not opening a hedge fund! Just trading and allowing others to copy me per their own risk per the copy-trading rules of the biggest crypto exchange in the world, binance, bybit. So I was doubting that I would need to inform FCA when i am not taking any funds, etc like a hedge fund would.
Click to expand...
Source : Copy trading
As long as it's fully automated copying your trades its classed as portfolio or investment management.
 
#16
There's a difference between a Portfolio Manager or Hedge Fund Manager offering copy trading to it's big clients, and retail traders offering copy trading on retail platforms like eToro (who handle everything).

https://www.ft.com/content/beac06bd-61d2-4326-89f7-59a1689132a0
"In the UK, the Financial Conduct Authority raised concerns about copy trading two years ago after it found that 58 per cent of under-40s invested in high-risk products did so based on news and social media content. It has since introduced a set of measures aimed at online influencers, but copy trading’s “popular investors” are not covered."

Thanks anyways everyone. Think I will just stick to Coinbase or Kraken in the UK as this is all too much hassle and I want to be doing everything legally and pay tax, etc.
 
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#17
#18
@Super You actually don't need to register as a corporate in binance to use the full capabilities of binance. Although it's still a valid option, an easier option is to just redo the kyc and use a different address and submit a Proof of address for anything outside the UK/EU. (If you need help DM me)

I had my address registered on Binance as the UK because I was selling on P2P, but once they started cutting down several services (especially GBP bank deposits) for UK users, I submitted a new Proof of address to a different country, and all is back again!

You don't need to inform the FCA of anything, binance doesn't report to the FCA or pretty much any authority regarding the activity of users. Binance.US might be, which is a separate entity from binance international.
 
#20
Can someone give an input on how much privacy these Barbados companies give you? Any way for people to find out you are tied to the company? Seems like Berbuda shares information with other authorities on request?
 
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