Crypto Pool

[mb325]

I'm UK based and would like to find a clean & legal way to give friends/family the chance to get some exposure to cryptocurrencies.

This would be a buy and hold for a few years type of thing; minimal 'trading', if any.

There would need to be some way for me to take a small % in any profits made, I believe this rules out an Investment Club.

I'm wondering if I can just set up a limited company, sell shares and then hold the 'cash' in crypto.

Or if it could be classed as a 'gambling syndicate'.

I think an AIF is an option but seems overly-complicated to me.

TL;DR: What is the simplest vehicle I can set up which will let me buy and hold cryptocurrencies for friends/family, whilst allowing me to take a small share of profits and be above board in the eyes of HMRC etc.

Any thoughts greatly appreciated.

 

[EnlightenedJoe]

Search "hmrc private casino"

 

[Pat494]

There are a plethora of crypto currencies springing up now, with small areas having their own, scammers etc. that the Govt may crack down on them soon.

 

[EnlightenedJoe]

the Govt may crack down on them soon.

Then CV needs to get into it sharpish to make 500% a day before the kiddies are shutdown.

 

[mb325]

bump

 

[joseph1986]

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I'm UK based and would like to find a clean & legal way to give friends/family the chance to get some exposure to cryptocurrencies.

This would be a buy and hold for a few years type of thing; minimal 'trading', if any.

There would need to be some way for me to take a small % in any profits made, I believe this rules out an Investment Club.

I'm wondering if I can just set up a limited company, sell shares and then hold the 'cash' in crypto.

Or if it could be classed as a 'gambling syndicate'.

I think an AIF is an option but seems overly-complicated to me.

TL;DR: What is the simplest vehicle I can set up which will let me buy and hold cryptocurrencies for friends/family, whilst allowing me to take a small share of profits and be above board in the eyes of HMRC etc.

Any thoughts greatly appreciated.

I think the fact that bitcoin rose over 1000% in the last 2 years should make anyone a little fearful, there really is no method of forecast for that kind of velocity. The only positive argument is that mining will cease in 2 years and all blocks will only be in circulation which may raise prices due to supply side dynamics but you have to contend with the possibility that a 1000% percent rise in an instrument can also have a risk of a 1000% decline. Rather be a slow turtle in the beginning of the race instead of a future rabbit with broken leg....I'll stick with equities

 

[Pat494]

If there was only bitcoin then not much of a problem but when small countries and even towns start producing there own versions, the Fed and other Central Banks may try and stop it before we get back to seashells and dog poo.

 

[mb325]

I didn't want this to descend into personal views on cryptocurrencies, but i'll bite.

Joseph, the fact that it has gone up over 1000% in the last 2 years should definitely make one feel a little fearful - it should also make one think that maybe one should own 'a bit' as a means of diversifying one's portfolio. And I'm not talking about bitcoin in particular - because that's a punt, not diversification - but the cryptocurrency/blockchain asset class as a whole. If anyone reading this is of the opinion that blockchain technology (and it's off-shoots) won't change the world in the next 10 years then you need to go do some reading. I would start with 'Blockchain Revolution' by the Tapscotts.

Pat, I'm not sure they can, that's why they're so worried.

Last attempt - if anyone with any knowledge of setting up the type of structure noted above could just give me even a term to google it would be much appreciated.

 

[joseph1986]

/

I didn't want this to descend into personal views on cryptocurrencies, but i'll bite.

Joseph, the fact that it has gone up over 1000% in the last 2 years should definitely make one feel a little fearful - it should also make one think that maybe one should own 'a bit' as a means of diversifying one's portfolio. And I'm not talking about bitcoin in particular - because that's a punt, not diversification - but the cryptocurrency/blockchain asset class as a whole. If anyone reading this is of the opinion that blockchain technology (and it's off-shoots) won't change the world in the next 10 years then you need to go do some reading. I would start with 'Blockchain Revolution' by the Tapscotts.

Pat, I'm not sure they can, that's why they're so worried.

Last attempt - if anyone with any knowledge of setting up the type of structure noted above could just give me even a term to google it would be much appreciated.

I had success with coinbase.com, I'm sure they accept europe customers also and it is reliable. I bought some coins there and sold back for cash in 2014. If I had to do it I would go with litecoin and stay far away from bitcoin.....just my opinion

 

[Pat494]

This could be the next mega coin

https://www.investing.com/education/webinars/trade-ripple-while-it's-still-cheap-12040

 

[progix]

I had success with coinbase.com, I'm sure they accept europe customers also and it is reliable. I bought some coins there and sold back for cash in 2014. If I had to do it I would go with litecoin and stay far away from bitcoin.....just my opinion

Good to hear healthy opinions on crypto currencies however i think holding bitcoin is also not a bag deal for it is sky rocketing every time and with a total supply of 21 million in total we can not ignore the importance of this coin in future.

 

[FXX]

I didn't want this to descend into personal views on cryptocurrencies, but i'll bite.

Joseph, the fact that it has gone up over 1000% in the last 2 years should definitely make one feel a little fearful - it should also make one think that maybe one should own 'a bit' as a means of diversifying one's portfolio. And I'm not talking about bitcoin in particular - because that's a punt, not diversification - but the cryptocurrency/blockchain asset class as a whole. If anyone reading this is of the opinion that blockchain technology (and it's off-shoots) won't change the world in the next 10 years then you need to go do some reading. I would start with 'Blockchain Revolution' by the Tapscotts.

Pat, I'm not sure they can, that's why they're so worried.

Last attempt - if anyone with any knowledge of setting up the type of structure noted above could just give me even a term to google it would be much appreciated.

there are bitcoin funds you can invest in that don't involve owning coins but are lied to performance. A colleague i work with closed out last week for 6K profit using this approach.

 

[Pat494]

I suppose these currencies will know that they have really arrived when the taxman accepts these coins in payment

 

[Brumby]

I'm UK based and would like to find a clean & legal way to give friends/family the chance to get some exposure to cryptocurrencies.

This would be a buy and hold for a few years type of thing; minimal 'trading', if any.

There would need to be some way for me to take a small % in any profits made, I believe this rules out an Investment Club.

I'm wondering if I can just set up a limited company, sell shares and then hold the 'cash' in crypto.

Or if it could be classed as a 'gambling syndicate'.

I think an AIF is an option but seems overly-complicated to me.

TL;DR: What is the simplest vehicle I can set up which will let me buy and hold cryptocurrencies for friends/family, whilst allowing me to take a small share of profits and be above board in the eyes of HMRC etc.

Any thoughts greatly appreciated.

Based on your requirements of a simple but yet legal structure would be IMO is to set up a private company by issuing shares to your friends or relatives. As you said, the plan is to invest for a defined period and thereafter to distribute the net outcome. This would be by way of liquidation of the said company and to return the funds to the shareholders. You will incur cost to incorporate, cost of annual filing fees and cost of eventual liquidation of company. I think there are special provisions that the company can be exempted from audit requirements but that is something you will have to investigate further. I would also caution that you be careful with the legal meaning of "public" and how that may or may not apply in regards to your circle of friends or relatives that you are planning to engage with in the investment venture.

Please note I am not offering you any professional advice but merely ideas for you to conduct further investigation.