CRYPTOCURRENCY
Poised to take centre stage Giorgio Vaselli and Lauren Rapeport explore the recent international tax and anti-money laundering developments on crypto assets. Giorgio Vaselli Special counsel, Withers Worldwide Lauren Rapeport Associate, Withers Worldwide
C
ryptocurrencies have been gathering pace ever since the second half of 2019, reaching a monumental breakthrough in the first quarter of 2021 when Bitcoin, the most representative crypto asset, exceeded an unprecedented valuation of approximately €50,000 (along with Ethereum, the second best crypto assets valuing up to approximately €1,600). Globally, crypto assets encompass more than 8,000 projects (where serious realities are flanked by sham projects) and are worth as much as one Google. Although crypto assets are still somewhat behind the scenes, and the tax and legal framework is still in the making, they are soon poised to take centre stage in the international business community, raising the attention of lawmakers and tax policymakers. Hence, investors and service providers should seize the opportunity to seek out the right tax and legal advice. From a wealth planning position, the considerable value of some crypto assets, along with an international legal context in the making, requires careful analysis of selected strategic areas including the following: ● anti-money laundering regulations (particularly with regard to EU jurisdictions); ● international exchange of information between tax administrations; and ● international taxation. Due to the changing face of the crypto assets reality, lawmakers are attempting to pin down certain procedures aimed at increasing the level of transparency on this market. As of today, antimoney laundering (AML) regulations represent the first steps to achieving a standard of practice.
12
ISSUE 117 | AIAWORLDWIDE.COM
