An increasing number of high-net-worth individuals who built their wealth through Bitcoin and other crypto assets are running into resistance from traditional trust companies when trying to set up offshore trusts for tax planning and wealth succession, according to the Financial Times. Trust providers are said to be concerned about the difficulty of verifying the source of funds, potential money-laundering exposure, sharp swings in asset prices, and fiduciary risks tied to the possible loss of private keys. The report said some trust firms that specialize in digital-asset clients are taking on this business by using on-chain analysis and tighter compliance reviews. Even so, most mainstream trustees remain cautious, worried that disputes over the origin of crypto assets or steep declines in value could leave them facing legal liability and reputational damage in the future.
An increasing number of high-net-worth individuals who amassed wealth through Bitcoin and other crypto assets are being turned away by traditional trust companies when seeking offshore trust structures for tax planning and wealth succession, according to the Financial Times.
The main concerns cited by trust providers include the difficulty of verifying the source of funds, potential money-laundering risks, extreme price volatility in crypto assets, and fiduciary responsibility issues if private keys are lost.
The report said some trust firms focused on digital-asset clients are accepting such mandates by relying on on-chain analysis and stricter compliance checks. Most mainstream trustees, however, remain cautious, worried that questions over the origin of crypto holdings or a sharp drop in their value could expose them to legal and reputational liability.
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