Economic substance rules have made the offshore landscape a bit more costly and a bit more complicated. And what does that entail? Economic substance is broken down into two points: relevant entities and relevant activities. Relevant entities are basically any non-local offshore entity. And for purposes of this discussion, we’re really focusing on the recent pronouncements that you see in places like Bermuda, Cayman Islands, BVI, traditional offshore jurisdictions. You can include Guernsey, Jersey, Isle of Man to those as well, where they’ve adopted their own individual economic substance laws, but they all really look the same and operate in…


For the longest time, there was this perception that Swiss banking and everything Swiss was the way to go when it came to offshore. And there was some misconception about that in the sense that everybody tended to think that there was an advantage to the banking, which there was to some degree, which is largely gone. But the real derivation of the benefit and sort of the misnomer of Switzerland as an offshore location is its corporate structures. In particular, the Swiss AG and the Swiss SA, which are in fact the same thing. That’s really where the secrecy…


So you want to go off-shore with a gaming license, and there’s a lot of great locales to start this from, ranging from the very easy and cost-effective in like a Costa Rica to the more established and more, I guess, respected locales of Alderney, Isle of Man, Gibraltar, and places like that. And the question becomes, what jurisdiction can I license in? Can I form in and license in order to operate in the US, and your answer is: none of them, right? Absolutely none of them. …


So, Brexit finally passed, and the details haven’t really been worked out, but it’s an interesting problem, right? It forms this postulate, and one of the great things about the EU is the passporting of licenses, which I’ve talked about before, right? And that’s the ability to license in one jurisdiction and have that license be defacto valid in other jurisdictions. In the EU and to a large part the Commonwealth nations allow for passporting. And with Brexit, you have Great Britain leaving the EU and along with it, go Isle of Man, Guernsey and Gibraltar, as being protectorates, for…


So buyback and burn are becoming more popular and you see finance putting in a smart contract. And basically what it entails or functions like is a stock repurchase where the tokens are repurchased by the issuer and then burned, taken out of circulation. It has the effect, or at least the intended effect, of increasing a token’s price on an open market. So the question becomes, is there some value in the concept of an alternative to an ICO? And you see stock repurchase all the time. Apple is one of the big companies that do it. But you…


So you have remittance companies basically all over the planet. The majority of the remittances in the world going to Southeast Asia, Southern Asia, and the majority of these companies are located outside the United States. And I feel the question often is do I need to register as a money service business if I have no physical presence in the United States, but I solicit US customers? And what’s unique about the United States, or perhaps troubling about the United States, is that we don’t passport licenses, right? When it comes to financial services, of really any kind, of…


So there was this time in the mid-aughts, in the mid-2000s, and it’s been sort of memorialized in a couple of documentaries whereby you saw a great amount of Chinese companies becoming publicly traded through what’s called a reverse merger. And to the extent that you’re not aware of what a reverse merger is, a reverse merger is when a private company merges with a publicly-traded shell company or dormant publicly-traded company. And the net effect of that merger is that that private company becomes publicly-traded. And it’s sort of been known as this backdoor IPO. And for years it’s…


There’s a lot of talk about non-fungible versus fungible tokens and how … What I see is non-fungible tokens being used to disguise security tokens or misconstrue people on what the nature of their token is. Fungible tokens is a token that could be exchanged for each other, so think of a $20 bill. I have a $20 bill, you give me a $20 bill, we’re even. Bitcoin is a fungible token, right?

A non-fungible token is a token that isn’t equal, cannot be exchanged for each other because it represents different things. And there’s a lot of good use…


Transcribed from: https://youtu.be/ojua4OWJpyM

Bitcoin ATM regulation is constantly in flux, and I haven’t talked about it in a while, so I wanted to revisit the subject. So, with regards to any Bitcoin or cryptocurrency ATM, it always starts with federal registration as a money service business, right? So going through FinCEN, getting an MSB registration, which is a pretty straightforward, and as the name would imply, registration process as opposed to application, right? So it’s definitely a necessity because as I’ve discussed before, the definition of money transmitter at the federal level, encompasses all forms of virtual currency transmission, right…


Transcribed from: https://youtu.be/u12mgqB7hkU

The Foreign Account Tax Compliance Act or FATCA is big business in the accounting world, in the tax world because compliance can be expensive. And what the main tenant of FATCA is form 8938. And that requires the disclosure of certain accounts and financial assets held in foreign accounts. And so the question becomes, in the context of cryptocurrency, is there a compliance burden? And the question is, or the answer is rather: I’m not sure. The IRS, unlike FinCEN, unlike the CFTC SEC, views cryptocurrency as property. And so, when we’re dealing with FATCA, we’re talking…

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