Approved by the B.C. Securities Commission, as well as registered in the province of Ontario, the Canadian FBC Bitcoin Trust is the first registered cryptocurrency investment fund in the country. Created by the co-founders of First Block Capital , the trust will allow for the ease of access to bitcoin investing that is badly needed within an industry that has seen many potential investors forced to sit on the sidelines. The open-end investment fund will track the market price of bitcoin, and be offered to accredited investors in a private placement offering through GMP Securities L.P. at the end of September.
Regulation is a touchy subject in the bitcoin industry. Many cryptocurrency idealists who truly believe they are invincible to government reach, also believe that the lack of bitcoin-specific regulation gives them a free pass. They may be in for a nasty surprise when they find out just how long ‘the long arm of the law’ really is. Governments around the world already have an arsenal of catch-all laws that can be used to fight tax evasion and other illegal activities that attempt to hide behind the anonymity of some cryptocurrencies and related services.
Large corporations, particularly multinationals, as well as some of the wealthiest members of society, often go to great lengths to get out of paying income tax. Their unlimited resources give them access to the best lawyers and accountants that can scour the tax code looking for any loophole that will allow them to pay less. Deep pockets and connections allow them to come up with complicated and often convoluted flow of capital plans, that sees their money move in and out of shell accounts in various tax havens around the world.
Tax avoidance and evasion by this elite segment of society has a trickle-down negative psychological effect on everyone. When an individual or small business owner who is barely getting by, sees this privileged group getting away with it, they are more likely to engage in similar illegal or immoral activities.
The ‘three-legged stool of retirement’ is a term dating back more than sixty years, and is used to describe the most typical sources of retirement income. Those sources are Social Security, employer sponsored pensions, and personal savings.
Times have changed and none of these legs have the kind of strength needed to support the retirement needs of a nation. All three are facing serious financial shortfalls that will devastate the retirement plans of a significant percentage of the population.
Perhaps the time has come for the old stool to get a new leg…
Lately the subject of Bitcoin, cryptocurrency, and the blockchain has been garnishing daily headlines around the world. As a financial professional, how much do you really know about it? If the extent of your awareness on this topic comes from sensationalized media headlines, you may want to spend some time updating your professional profile to include a strong knowledge base or certification in digital currency.
Bitcoin earned the distinction of being the best performing currency in 2015. Your clients may be interested in it as an investment , to accept as payment in their business or charity, or they may have questions regarding taxation and other issues. They are relying on you, as they would in any other financial matter, to provide them with accurate and up to date advice, information, and strategies.