Has any one tried to use offshore companies to trade on binance, bybit?
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If you want it legal, you need to register them in UK as foreign company and then you pay tax as if it was a UK company. You can read the rules here
https://www.gov.uk/register-as-an-overseas-company
https://www.gov.uk/register-as-an-overseas-company
Thanks, paying tax is not an issue. I want everything to be legal.
Let's say I trade crypto on those sites under this registered offshore company. I am also considering opening a copy-trading service that allows other people to follow/copy my trades and pay me like 5% if they make a profit, etc. https://www.bybit.com/copyTrade/
And if this is successful endeavor, I might then move the company︀ to say dubai and base it there and pay lower tax, legally.
Is it possible︁ to move this company to say Dubai or Cyprus or what have you later? Sort︂ of like what Dyson did when he moved to Singapore?
Let's say I trade crypto on those sites under this registered offshore company. I am also considering opening a copy-trading service that allows other people to follow/copy my trades and pay me like 5% if they make a profit, etc. https://www.bybit.com/copyTrade/
And if this is successful endeavor, I might then move the company︀ to say dubai and base it there and pay lower tax, legally.
Is it possible︁ to move this company to say Dubai or Cyprus or what have you later? Sort︂ of like what Dyson did when he moved to Singapore?
Yes, you can move the company. But︀ please be aware that you will be charged exit tax on the goodwill you create︁ in UK.
That's a bummer! Copy-trading is just a part of using those sites. I mean individual traders (not just businesses) offer/allow copy-trading of their trades and they just trade regularly and just have to click a checkbox to allow for copy-trades of their trades. Do I really have to inform FCA about this myself, when really i m just trading. Obv, i will pay any taxes on anything i make from copy-trading.
What is this question? If the rules say, you must, then you must. Of course, you can just not do it and hope nobody ever finds out. If could︀ work for days, weeks, months, years or even decades. But that does not make it︁ more legal.
We have so many discussions like this here. About people running businesses in︂ countries they are "just visiting" etc. Of course, you can ignore the rules and hope︃ not to be caught. But then, please do it in silence, don't talk about it,︄ don't show off on the street, don't drive too fast while drunk, etc. As long︅ as nobody investigates you, it probably will work. If you behave badly, people or the︆ police will check you and find out. There is no point asking here either, you︇ won't be able to claim that you followed your "consultant's advice" etc. when they catch︈ you and blame it on user 77 on OCT.
We have so many discussions like this here. About people running businesses in︂ countries they are "just visiting" etc. Of course, you can ignore the rules and hope︃ not to be caught. But then, please do it in silence, don't talk about it,︄ don't show off on the street, don't drive too fast while drunk, etc. As long︅ as nobody investigates you, it probably will work. If you behave badly, people or the︆ police will check you and find out. There is no point asking here either, you︇ won't be able to claim that you followed your "consultant's advice" etc. when they catch︈ you and blame it on user 77 on OCT.
My question was do I really have to legally inform FCA? I definitely will only follow the legal routes. I wasn't asking anything illegal so I am not worried. I will reiterate my question: offering copy-trading on a stockbroker or crypto exchange is different from say opening a full fledged hedge fund. Copy-trading sites handle all the compliance stuff and get people who will be copying to sign disclosures that they know risks, etc. So it's not like I am opening a big hedge fund. So I was wondering if legally I am really required to inform FCA about it, when likely it will just︀ be part of my legal trading on that site/exchange and that site/exchange handles customer disclosure︁ forms, risk forms, etc (with tax paid in uk even if company is offshore).
So a valid legal question. I am not opening a hedge fund! Just trading and allowing︂ others to copy me per their own risk per the copy-trading rules of the biggest︃ crypto exchange in the world, binance, bybit. So I was doubting that I would need︄ to inform FCA when i am not taking any funds, etc like a hedge fund︅ would.
My question was do I really have to legally inform FCA? I definitely will only follow the legal routes. I wasn't asking anything illegal so I am not worried. I will reiterate my question: offering copy-trading on a stockbroker or crypto exchange is different from say opening a full fledged hedge fund. Copy-trading sites handle all the compliance stuff and get people who will be copying to sign disclosures that they know risks, etc. So it's not like I am opening a big hedge fund. So I was wondering if legally I am really required to inform FCA about it, when likely it will just be︀ part of my legal trading on that site/exchange and that site/exchange handles customer disclosure forms,︁ risk forms, etc (with tax paid in uk even if company is offshore).
So a︂ valid legal question. I am not opening a hedge fund! Just trading and allowing others︃ to copy me per their own risk per the copy-trading rules of the biggest crypto︄ exchange in the world, binance, bybit. So I was doubting that I would need︅ to inform FCA when i am not taking any funds, etc like a hedge fund︆ would.
So a valid legal question. I am not opening a hedge fund! Just trading and allowing︂ others to copy me per their own risk per the copy-trading rules of the biggest︃ crypto exchange in the world, binance, bybit. So I was doubting that I would need︄ to inform FCA when i am not taking any funds, etc like a hedge fund︅ would.
My question was do I really have to legally inform FCA? I definitely will only follow the legal routes. I wasn't asking anything illegal so I am not worried. I will reiterate my question: offering copy-trading on a stockbroker or crypto exchange is different from say opening a full fledged hedge fund. Copy-trading sites handle all the compliance stuff and get people who will be copying to sign disclosures that they know risks, etc. So it's not like I am opening a big hedge fund. So I was wondering if legally I am really required to inform FCA about it, when likely it will just be︀ part of my legal trading on that site/exchange and that site/exchange handles customer disclosure forms,︁ risk forms, etc (with tax paid in uk even if company is offshore).
So a︂ valid legal question. I am not opening a hedge fund! Just trading and allowing others︃ to copy me per their own risk per the copy-trading rules of the biggest crypto︄ exchange in the world, binance, bybit. So I was doubting that I would need︅ to inform FCA when i am not taking any funds, etc like a hedge fund︆ would.
Source : Copy trading
As long as it's fully automated copying your trades its classed as portfolio or investment management.
As long as it's fully automated copying your trades its classed as portfolio or investment management.
There's a difference between a Portfolio Manager or Hedge Fund Manager offering copy trading to it's big clients, and retail traders offering copy trading on retail platforms like eToro (who handle everything).
https://www.ft.com/content/beac06bd-61d2-4326-89f7-59a1689132a0
"In the UK, the Financial Conduct Authority raised concerns about copy trading two years ago after it found that 58 per cent of under-40s invested in high-risk products did so based on news and social media content. It has since introduced a set of measures aimed at online influencers, but copy trading’s “popular investors” are not covered."
Thanks anyways everyone. Think I will just stick to Coinbase or Kraken in the UK︀ as this is all too much hassle and I want to be doing everything legally︁ and pay tax, etc.
https://www.ft.com/content/beac06bd-61d2-4326-89f7-59a1689132a0
"In the UK, the Financial Conduct Authority raised concerns about copy trading two years ago after it found that 58 per cent of under-40s invested in high-risk products did so based on news and social media content. It has since introduced a set of measures aimed at online influencers, but copy trading’s “popular investors” are not covered."
Thanks anyways everyone. Think I will just stick to Coinbase or Kraken in the UK︀ as this is all too much hassle and I want to be doing everything legally︁ and pay tax, etc.
@Super You actually don't need to register as a corporate in binance to use the full capabilities of binance. Although it's still a valid option, an easier option is to just redo the kyc and use a different address and submit a Proof of address for anything outside the UK/EU. (If you need help DM me)
I had my address registered on Binance as the UK because I was selling on P2P, but once they started cutting down several services (especially GBP bank deposits) for UK users, I submitted a new Proof of address to a different country, and all is back again!
You don't︀ need to inform the FCA of anything, binance doesn't report to the FCA or pretty︁ much any authority regarding the activity of users. Binance.US might be, which is a separate︂ entity from binance international.
I had my address registered on Binance as the UK because I was selling on P2P, but once they started cutting down several services (especially GBP bank deposits) for UK users, I submitted a new Proof of address to a different country, and all is back again!
You don't︀ need to inform the FCA of anything, binance doesn't report to the FCA or pretty︁ much any authority regarding the activity of users. Binance.US might be, which is a separate︂ entity from binance international.
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