Buy UK company with cryptocurrency - source of funds

[jiaot886]

Created a topic about my question Buying existing UK company with crypto (usdt/bitcoin) but i hadn't noticed i can upgrade my account and ask pros

I don't know if it is the right place to ask here or other category. My view of the category is it is mentor help? 😕

Reading daily about ability to purchase UK company with cryptocurrency but i realise only now if it isn't possible to send cryptocurrency directly to the owner but have to use over the counter desk they would ask for source of funds ns2? I currently have invested my crypto portfolio in exchange business of sort catering to China & surrounding areas. I have one business partner who holds some of it in cash or digital cash or other exchangeable goods like gold and silver but he can send me the 1M in bitcoin or USDT to my wallet. How would i go about creating or proving source of funds? I don't want to disclose the direct business to be available to the government here which is legal in most of the world but not as legal in mainland China.anrid:


#1) My most important question is can I buy a UK company with cryptocurrency directly i don't want to spam the forum look at my topic and help me here or there Buying existing UK company with crypto (usdt/bitcoin) I don't want to cause issue for the owner of company I want to be sure the dealings is right and he can pay his 10% tax without issue from UK tax man.

#2) Is there someone who can help me or guide me to contacts for OTC that can deposit in UK personal bank account? The OTC person must be able to accept recent wallet transactions leading up to $1M.bor&%#

#3) If I took route #2 with OTC how can I show proof of funds or source of funds? Can i create invoices from my business partner to me? Is it even needed? I expect he will send to me the $1M through several wallets. Is there anyone who can help me? My business partnership and nature should be private because i don't want other people to copy it but it's within reason and law (gray area)


Lots of love to all members for help in advance

 

[Sols]

Paying for something in crypto is in many ways no different from paying for something in fiat. When it comes to SOF/SOW, the same rules and regulations apply.

jiaot886 said:
How would i go about creating or proving source of funds? I don't want to disclose the direct business to be available to the government here which is legal in most of the world but not as legal in mainland China.anrid:
Click to expand...

In the eyes of the law, what you're asking here is essentially "How do I launder money?" You prove the source of funds by explaining where the money came from and showing documents to support that.

jiaot886 said:
#1) My most important question is can I buy a UK company with cryptocurrency directly i don't want to spam the forum look at my topic and help me here or there Buying existing UK company with crypto (usdt/bitcoin) I don't want to cause issue for the owner of company I want to be sure the dealings is right and he can pay his 10% tax without issue from UK tax man.
Click to expand...

You can buy anything for anything (almost, legally) as long as someone is willing to sell it to you for that consideration. Taxes and reporting requirements for the sale typically fall on the seller, not the buyer. Someone selling a company for crypto presumably knows that they will receive crypto.

But if the seller is savvy, they will investigate the buyer first, and be prepared for questions that the seller's banks is likely to ask.

jiaot886 said:
#2) Is there someone who can help me or guide me to contacts for OTC that can deposit in UK personal bank account? The OTC person must be able to accept recent wallet transactions leading up to $1M.bor&%#
Click to expand...

Most OTC desks only handle first-party transactions. Your crypto in and fiat to your bank account out.

jiaot886 said:
My business partnership and nature should be private because i don't want other people to copy it but it's within reason and law (gray area)
Click to expand...

It's not gray. It's black. Lying about or concealing the origin of funds is part of the definitions of money laundering.

Don't turn a simple, routine business transaction into a criminal offense. Either prepare to explain your partner's SOF/SOW or structure the money from that person in a way that's less likely to be questioned in-depth, such as a loan. Loans that come from people or companies that can be easily verified/estimated online as having enough capital to issue that kind of loan are often not subject to enhanced due diligence.

Can you pay for the whole transaction yourself, and then your private partner pays you separately?

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This is the probably the answer to your question.

 

[jiaot886]

Sols said:
Paying for something in crypto is in many ways no different from paying for something in fiat. When it comes to SOF/SOW, the same rules and regulations apply.


In the eyes of the law, what you're asking here is essentially "How do I launder money?" You prove the source of funds by explaining where the money came from and showing documents to support that.


You can buy anything for anything (almost, legally) as long as someone is willing to sell it to you for that consideration. Taxes and reporting requirements for the sale typically fall on the seller, not the buyer. Someone selling a company for crypto presumably knows that they will receive crypto.

But if the seller is savvy, they will investigate the buyer first, and be prepared for questions that the seller's banks is likely to ask.


Most OTC desks only handle first-party transactions. Your crypto in and fiat to your bank account out.


It's not gray. It's black. Lying about or concealing the origin of funds is part of the definitions of money laundering.

Don't turn a simple, routine business transaction into a criminal offense. Either prepare to explain your partner's SOF/SOW or structure the money from that person in a way that's less likely to be questioned in-depth, such as a loan. Loans that come from people or companies that can be easily verified/estimated online as having enough capital to issue that kind of loan are often not subject to enhanced due diligence.

Can you pay for the whole transaction yourself, and then your private partner pays you separately?
Click to expand...

Thank for the really deep reply.

In the eyes of the law, what you're asking here is essentially "How do I launder money?" You prove the source of funds by explaining where the money came from and showing documents to support that.
Click to expand...

I'm not asking it to be complex and you're right simplicity is best. I don't have a formal agreement with my business partner who is my family cousin. I'm not sure how it can be done or proven? The business is Chinese with different branches nearby too like Macau is it possible for branches or company itself to issue me a loan directly? What would the document be to be accepted in the Western world? Does it need translation?

Someone selling a company for crypto presumably knows that they will receive crypto.
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Will it fit their UK tax? i don't know about the tax system there itself and the seller doesn't know really about crypto or how it'll be taxed. I need to assure him he'll be taxed as normal as purchasing from someone else and receiving bank transfer.

It's not gray. It's black. Lying about or concealing the origin of funds is part of the definitions of money laundering.
Click to expand...

Does it include if the business is legal (in jurisdiction where operate)? My understand is only illegal business trying to launder is money laundering? How can real business be laundering doesn't make sense to me?

Can you pay for the whole transaction yourself, and then your private partner pays you separately?
Click to expand...

I'm not liquid enough for it why I need the 1M in crypto. Paying it myself too would be issue transferring so as much money through banks.