Big Block BitCoin Broker

31 Oct
Bitcoin community
Global Reserve Cryptocurrency

Thomson Reuters survey found one in five financial institutions is considering trading cryptocurrencies in the next 12 months. Of those, 70 percent said they planned to start trading in the next three to six months, however few institutions have gone public about their plans to trade cryptocurrencies.

Global Currency Reset (GCR) has 37 million references on Google. We don’t make predictions of when the GCR will happen, we only predict that it will happen, and you will NOT be forewarned.

Big Block Bitcoin Broker
Big Block BitCoin Broker with Proof of Coins (POC) seeking Buyer with Proof of Funds (POF)

Canada and other countries are buying BitCoin to hold in Reserve. Banks are buying BitCoin and NYSE & TSX have embarked on trading this new instrument. Necessity is driving the use of BitCoin and the writing is on the wall. Cryptocurrency as an asset class, is here to stay.

Offshore Outcome: 402(b) style Clean Nominee Bank Account trading is crucial

  1. Trading is pre-authorized AML & KYC
  2. Trading is tax law free
  3. Trading is securities law free
  4. Trades are tax free roll-up
  5. Trades are exempt from tax reporting
  6. Trades are excluded from tax liability
  7. Account withdrawals in cash can be subject to capital gains tax

Operational trading with regulatory exemption.

How your operational trading, with regulatory exemption, would occur within the retirement plan or a part of a network is detailed after the Letter of Engagement and Fee Invoice are completed.

Background reasons registered security or exempted from registration is crucial: The Securities and Exchange Commission (SEC) has defined who can have liability in an unregistered offer of securities that is not exempted: “Those who have a necessary role in the transaction are held liable as participants”.

So, for example, it will be illegal for a broker, dealer, or exchange to effect any transaction in a token which is a security unless the offering and sale of the security and the relevant exchange it is traded on are either registered or exempted from registration.

The SEC position of interest to all proponents of a token sale: “The touchstone of an investment contract [Note: an investment contract is a kind of security, and the SEC concluded that The Decentralized Autonomous Organization (DAO) was an example of an investment contract] is the presence of an investment in a common venture premised upon a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.”

Regulatory focus on ICO’s:

There is increased regulatory focus on ICOs. Just to recap in very basic terms – the regulations we are dealing with differ between the various jurisdictions, but all are directed at the same policy objectives, namely investor protection from abuses that were rampant around the world before regulation was introduced.

Globally recognized government regulated, registered occupational retirement law is exempt from insurance and securities regulations, thus eliminating additional capital raising costs, while providing added tax benefits to your clients. Your investors will not be subjected to taxation within this Clean Nominee Bank Account structure.

This represents the ability to seamlessly invest and trade capital offshore through a prequalified deemed compliant KYC & AML retirement Trust that is approved secret and private by Governments. Clients can enjoy the benefit of accruing value tax-free and ultimately distributing the income to the member on a tax-exempt basis in many jurisdictions. Occupational retirement laws innovative solution enables issuer’s to have a legal vehicle for their existing or new investment products. The investment products can range anywhere from cryptocurrency, real estate acquisitions, developments, forex, equities, mutual funds to commodities.

This is tax and reporting compliance that Governments enforce because they recognize it is excluded from financial reporting and an exempt beneficiary account. Appointing an offshore management company to provide investment services increases tax compliance risk Imagine a scenario in which a Hong Kong-based hedge fund manager establishes and appoints an offshore management company to provide investment management services for its fund. On one hand, the fund’s structure ensures a clear operational base. But at another level, key governance procedures are often neglected and tax compliance is at risk.

An offshore company comes at a steep price and exposes the fund manager to tax liabilities in the manager’s onshore jurisdiction. This is especially true in today’s environment, in which regulators and tax authorities everywhere are taking a closer look at the substance of offshore management companies by means of government foreign financial account exchange of information agreements.

It is imperative to get the tax compliance substance right. Not addressing the corporate governance and operations of the offshore management company is a far riskier proposal today than it ever was. Governments around the world are casting their tax nets far and wide, it’s an opportune time for fund managers to carefully assess their offshore structures and ensure that there is substance to them and not a mere shell.

How to mitigate tax compliance risk

So, how does a Hong Kong investment manager minimize exposure to tax risk? Merely setting up a fund manager in an offshore jurisdiction such as the Cayman Islands is not a sufficient structure to ensure tax compliance and increases the risk. Regulators have highlighted the risk of that approach.

First, ongoing questions from tax authorities point to concerns about central management and control issues regarding the fund, as well as the need to properly demonstrate that there is real substance to the offshore business structure.

By substance, we mean maintaining a proper operational structure that keeps the fund manager’s operations outside of the tax framework of the onshore entity. In other words, the offshore structure should be a government regulated, registered and recognized entity that meets compliance requirements and avoids tax liabilities.

Cryptocurrency trading is a registered security or exempted from registration: The Securities and Exchange Commission (SEC) has defined who can have liability in an unregistered offer of securities that is not exempted:

“Those who have a necessary role in the transaction are held liable as participants”. So, for example, it will be illegal for a broker, dealer, or exchange to effect any transaction in a token which is a security unless the offering and sale of the security and the relevant exchange it is traded on are either registered or exempted from registration.

The SEC’s final word:

“Those who offer and sell securities in the United States must comply with the federal securities laws, including the requirement to register with the Securities and Exchange Commission (SEC) or to qualify for an exemption from the registration requirements of the federal securities laws.”

”These requirements apply to those who offer and sell securities in the United States, regardless whether the issuing entity is a traditional company or a decentralized autonomous organization, regardless whether those securities are purchased using U.S. dollars or virtual currencies, and regardless whether they are distributed in certificated form or through distributed ledger technology.

Register as a national securities exchange or operate pursuant to an exemption from registration.

[Note: blockchain is a particular type of distributed ledger technology (DLT)]. In addition, any entity or person engaging in the activities of an exchange, such as bringing together the orders for securities of multiple buyers and sellers using established nondiscretionary methods under which such orders interact with each other and buyers and sellers entering such orders agree upon the terms of the trade, must register as a national securities exchange or operate pursuant to an exemption from such registration.”

Invest Offshore Solution:

The Clean Nominee Bank Account is not a tax haven, insurance product, company or a personal trust. International recognition is carved out under the Foreign Account Tax Compliance Act (FATCA), carved out under Common Reporting Standard (CRS), Automatic Exchange of Information (AEoI) and specifically mentioned in Double Tax Agreements (DTA) and Intergovernmental Agreements (IGA), unlike banks, law firms, Trusts, LLC’s and insurance companies which are not even mentioned.

Trading and investments can be exempt from insurance and securities regulations. In reliance on its permissions and exemptions, the Clean Nominee Bank Account framework will facilitate issuers’ access to new markets streamlining the issuers’ licensing and compliance requirements.

Assets held are recognized globally as not included in worldwide taxable assets nor subject automatic exchange of financial information reporting.

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