How To Buy & Sell Cryptocurrencies Peer to Peer Using an Offshore Company

With the traditional Cryptocurrency Exchanges becoming slower and clunkier to use by the day smart Cryptocurrency Investors and Traders are looking at alternative ways to buy & sell Cryptocurrency with a view to making a Trading profit.


Such activity typically begins with a Buyer being introduced to a Seller (or vice versa) via an Online Billboard type site.


The savvy Cryptocurrency Trader buys his Cryptocurrency at wholesale prices. The Trader then meets a potential Buyer online eg via a Billboard type site. The Buyer and the Trader agree on a price for the Cryptocurrency. The Buyer sends Fiat currency to the Seller/Trader’s nominated bank account. The Seller/Trader then transfers cryptocurrency from his/her wallet to the Buyer’s wallet and the transaction is completed. Like buying/trading real estate, if the Trader has bought his/her Cryptocurrency at the right price, he/she will have made a profit on the sale.


(Depending on the laws of the country wherein you’re based) Such an enterprise can lend itself well to an “Offshore” Corporate Structuring Plan. Here’s how it might work from an “Offshore” perspective:


  • You set up a zero tax Offshore Company eg an International Business Company (“IBC”) with an Offshore (ie nil tax jurisdiction based) “Nominee” Director (& ideally, eg if you live in a country which has CFC rules, a Private Foundation shareholder)
  • The IBC opens an account with the Billboard provider/s (probably with 2 providers one where you buy Cryptocurrency, one where you sell Cryptocurrency)
  • You are appointed as the IBC’s authorised trader (ie you place the advertisements and then negotiate buy and sell orders on behalf of the Company)
  • Once a month the IBC’s board meets and ratifies all the buy and sell orders that you’ve placed in the previous month.
  • Given the Company has no physical office and all deals are done on the internet, from an International taxation perspective, the IBC’s trading profits are generated from the venue from which the Company is seen to be managed and controlled.
  • Management & Control lies in the hands of the Company Director. The director is based Offshore ie in a nil tax environment. Hence profits are booked in a nil tax environment.
  • Provided the Company is setup & administered in a particular way (& depending on the laws of your home country) potentially you should only have to declare/pay tax on income/distributions paid to you by the Offshore entity


Would you like to know more? Then please Contact Us:


DISCLAIMER: OCO Ltd are not Tax advisers or Legal Advisers. You should seek local tax, legal and financial advice before committing to set up an Offshore Corporate or Fiduciary Entity.



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