Our valued sponsor

Question Offshore company for crypto (defi) arbitrage business

sirgarfield

New member
Jan 4, 2023
2
0
1
35
canada
Visit site
### Context:

I am a digital nomad holding Chinese passport.

I run a Crypto arbitrage operation where I build bots to exploit various in-efficiencies in DeFi protocols and extract profit. ( aka: MEV searcher in crypto lingo).

All the trading activities happen on blockchain and doesn't involve any centralized institutions like bank or exchange. However, the funding of working capital for my bots and withdrawal of profits do currently go through crypto exchange and bank account under my name.

Currently, I reside in Thailand. I plan to keep away from any CFC jurisdiction for as long as I run my current operation.

### Offshore company purpose & requirement:

I would like to operate my arbitrage business through a offshore entity for these reasons:

* Tax planning & compliance
(Currently, I am just using personal accounts, which could potentially open myself up for potential tax liability if whatever country I am residing do start to look into it. This is extremely unlikely but I prefer to have proper setup)

* I need to show income to foreign governments ( for digital nomad & visitor visa ) and to bank ( for access of credit ). This need to be done in a way that they can understand & recognize ( ie: I operate my own company which distribute a regular amount of profit every month. )


For this structure to have any value, I need:

1. A company with 0% corp tax and 0% tax for profit distribution to myself.

2. I need to be able to open bank account & crypto exchange account under the company's name. EMI institution is acceptable.
Also, the volume of fund movement won't be significant. I keep most of my profit on chain and in defi protocols. I only need to withdraw less than 10K USD per month to pay for cost of living and to satisfy any potential financial requirement relating to visa.


Would appreciate if forum members could suggest combinations of jurisdiction + corp type + bank name + exchange name where this could work.


Thanks.
 
Well, if living in Thailand, you need to have a company (not crypto) that has at least '1' staff on the books in the registered companies country of (accounting, nail polishing etc) - substance.

You get payments NOT until the next tax year (dividends) - thailand is territorial tax based (no tax if made outside of thailand and brought in, in the following year (note CRYPTO in Thailand is considered to be taxable where-ever its traded.... hence have a company overseas with substance, you get a dividend from that company (via fiat or stablecoin - in the NEXT tax year).
 
### Context:

I am a digital nomad holding Chinese passport.

I run a Crypto arbitrage operation where I build bots to exploit various in-efficiencies in DeFi protocols and extract profit. ( aka: MEV searcher in crypto lingo).

All the trading activities happen on blockchain and doesn't involve any centralized institutions like bank or exchange. However, the funding of working capital for my bots and withdrawal of profits do currently go through crypto exchange and bank account under my name.

Currently, I reside in Thailand. I plan to keep away from any CFC jurisdiction for as long as I run my current operation.

### Offshore company purpose & requirement:

I would like to operate my arbitrage business through a offshore entity for these reasons:

* Tax planning & compliance
(Currently, I am just using personal accounts, which could potentially open myself up for potential tax liability if whatever country I am residing do start to look into it. This is extremely unlikely but I prefer to have proper setup)

* I need to show income to foreign governments ( for digital nomad & visitor visa ) and to bank ( for access of credit ). This need to be done in a way that they can understand & recognize ( ie: I operate my own company which distribute a regular amount of profit every month. )


For this structure to have any value, I need:

1. A company with 0% corp tax and 0% tax for profit distribution to myself.

2. I need to be able to open bank account & crypto exchange account under the company's name. EMI institution is acceptable.
Also, the volume of fund movement won't be significant. I keep most of my profit on chain and in defi protocols. I only need to withdraw less than 10K USD per month to pay for cost of living and to satisfy any potential financial requirement relating to visa.


Would appreciate if forum members could suggest combinations of jurisdiction + corp type + bank name + exchange name where this could work.


Thanks.

Interesting, do you also sell or offer your services for a charge?

Thanks.
 
Interesting, do you also sell or offer your services for a charge?

Thanks.

No. Successful operators makes 6 digit USD monthly. I am not successful enough and I am currently in low 5 digit range. Even at my current income, it doesn't make sense to sell bots or code.

Based on further research and reading stuff on this forum, I have decided to go with Delaware LLC + Mercury business account + Kraken business account

Well, if living in Thailand, you need to have a company (not crypto) that has at least '1' staff on the books in the registered companies country of (accounting, nail polishing etc) - substance.

You get payments NOT until the next tax year (dividends) - thailand is territorial tax based (no tax if made outside of thailand and brought in, in the following year (note CRYPTO in Thailand is considered to be taxable where-ever its traded.... hence have a company overseas with substance, you get a dividend from that company (via fiat or stablecoin - in the NEXT tax year).

I am not willing to go through the hassle of creating substance or lying about the nature of my business for the purpose of appeasing Thai government. Does it help If I never remit any of the profit into a Thai bank account ? All distributed profit stays in my US bank account and I pay my cost of living from it.
 
Last edited:

Latest Threads