I’ve had the pleasure of working with several clients that started out with their own money and slowly began to take advantage of crypto exchanges. They were often more than a bit nervous about the concept, so they kept a close eye on their accounts on a regular basis.
One of the earliest of these was a client who had previously been a stock broker. During his time spent at the trading floor of the New York Stock Exchange, he was a member of the “Growth Fund,” which was a group of highly invested clients that was used to buy and sell stocks. One of the members of this fund was a former CIA agent who had just retired and was looking for a good way to put away his money.
The client contacted his old buddy, who happened to be a former CIA agent and asked for advice. The former CIA agent told him that the SEC was working with a company in the Cayman Islands that was offering “crypto custody” services. The SEC was also trying to crack down on the activities around this practice.
The former CIA agent’s friend contacted the SEC, and got an interesting response from the SEC that was very similar to the response from the SEC in the movie, The Manchurian Candidate. The SEC said that it had found that the company was a shell company, and that the people at the company didn’t even exist.
“We have reason to believe they are being run by a single individual. They are engaged in activities that are clearly outside the law. They are engaged in activities likely to create a significant risk to the private financial security of the United States. The activities include activities that appear to violate several existing criminal laws, including, but not limited to, Section 523 of the U.S.
The companies, which are based in the Caribbean, have no real offices in the United States. Instead they have physical offices abroad, and they’re acting as a shell for an operation that has no real staff and no real operations. One possible explanation is that the company is an offshore company that’s being used to hide the real operations of the company. This would explain why we don’t have any real information on the company.
It has been said that if you have a company offshore and operate in the Caribbean, it’s probably not an offshore company. That’s because many offshore companies act as a tax haven to hide the real nature of the company, so that they can avoid paying taxes. In addition, many offshore companies hide the real nature of the company by not having an office in the United States and don’t have any real staff.
I also think that this explains why we dont have any real information on the company.
And thats exactly the problem with crypto custody providers. They have no real personnel or business activity. They’re just offshore entities set up to hide their true nature. No real employees, no real office, no real employees or business operations. They just exist to make it easier for you to avoid paying taxes and hide your tax havens. Cryptocurrency is no different.
The tax implications of Bitcoin are a black box I’ve only read about, but there are a few things that most people seem to agree on; most notably, that the currency won’t be valued by the government to the same degree and most people feel that the currency won’t have a high enough market cap to qualify as a currency.
