W talks: cryptocurrency

More and more individuals and families have significant cryptocurrency investments and are looking to donate them as part of their charitable giving. Episode 12 of our Withers talks: cryptocurrency podcast, ‘Cryptocurrency and charitable giving,’ focuses on the interplay between cryptocurrencies and philanthropy.  Podcast host, Charles Kolstad, is joined by Paul Roy, of counsel in Withers’ New Haven, Greenwich and New York offices, who focuses on US domestic and international tax and philanthropy, to discuss considerations for investors looking to donate cryptocurrencies to charitable causes. You may have wondered, is it even possible to make gifts of cryptocurrencies? In this episode, our speakers affirm this question at the outset and explore related top of mind questions. What are some of the considerations for individuals and families looking to incorporate charitable giving of cryptocurrencies into their estate plan? With anonymity being one of the tenets of cryptocurrencies, do charitable organizations need to disclose the donor’s information to the IRS? If you’ve have held crypto for a long time, are there certain charities in particular you should focus on for donations? Listen now to hear their answers and more. We hope you enjoy this episode.

We’ve talked about NFTs in previous episodes, including in episode 6 on NFTs and art and episode 7 on investing in NFTs from an Asia perspective.  This episode of the Withers talks: cryptocurrency podcast, ‘NFTs and digital-only fashion,’ focuses on the exciting area of NFTs and blockchain in the world of fashion.  In this episode, podcast host Charles Kolstad is joined by Gina Bibby, partner on Withers’ corporate team in Los Angeles and head of the law firm’s global fashion tech practice, to discuss how fashion-related NFTs started, continue to grow and shape the fashion industry and beyond, and what lies in the future for NFTs and digital-only fashion.Instagram celebrities and the gaming industry inspired the birth of digital-only fashion houses that design specifically for people and characters in the digital world, or metaverse, explains Gina.  These trailblazing fashion brands saw opportunity for customers to purchase digital-only garments for personal use in cyberspace, including for themselves and characters in gaming, and now it is a growing movement in the fashion space.  In 2019, the monetization of digital-only fashion went next level when a fashion house put a digital dress on the blockchain as an NFT instead of selling it direct to consumers.  Listen as Gina and Charles discuss how NFTs and blockchain in fashion offer appealing characteristics amid the priorities of sustainability and transparency in fashion and the impact of the Covid-19 pandemic on fashion. Gina explains the opportunities, as well as the issues and challenges, that digital-only fashion can create, and shares her view of the future of this space. We hope you enjoy the episode.You can read more on NFTs and digital-only fashion in Gina's recent article, 'NFTs: is art mimicking fashion?'

Our tenth episode of the Withers talks: cryptocurrency podcast, ‘Transatlantic perspectives on anti-money laundering enforcement,’ focuses on current AML rules, regulatory regime enforcement and the future of AML enforcement in the US and UK related to cryptocurrency. In this episode, podcast host Charles Kolstad is joined by Harvey Knight, partner on our financial services regulatory team in London, and Chris LaVigne, partner on our litigation and arbitration team in our New York office. Harvey highlights the UK Financial Conduct Authority (FCA)’s registration system for AML purposes, its current status and its future outlook. Chris discusses the US Financial Crimes Enforcement Network (FinCEN)’s increasing focus on AML laws for crypto companies in the US, the regulatory push for AML enforcement on crypto-related crimes, and the latest with the SEC’s lawsuit against Ripple Labs Inc. over an alleged unregistered, ongoing digital asset securities offering.  For this and more, listen in on this interesting and informative transatlantic discussion on cryptocurrency and anti-money laundering enforcement. We hope you enjoy the episode. 

With the US tax deadline quickly approaching on May 17, 2021, tax issues are top of mind for many Americans, including for an increasing number of those who hold cryptocurrencies. Our ninth episode of the Withers talks: cryptocurrency podcast, ‘US tax considerations for crypto investors and issuers,’ focuses on the timely topic of the current tax landscape in the US for cryptocurrency as well as top tax considerations for crypto investors, issuers, day traders and miners.  In this episode, podcast host Charles Kolstad is joined by Elliot Galler, a partner on our international corporate tax team in Withers’ New York office, to discuss tax treatment, reporting requirements and enforcement related to crypto assets, including NFTs. What tax forms are relevant for taxpayers that own cryptocurrencies? Does the fact that you invest or trade cryptocurrencies on a non-US exchange change the US tax treatment? Are there special tax rules for miners and day traders? What are some of the gift and estate tax considerations? How is an issuer taxed in an ICO or SAFT?  Are NFTs considered “collectibles” and, if so, are they taxed at the higher capital gains rates? Listen to the episode for the discussion on these topics and more. For questions and inquiries related to tax and cryptocurrencies, contact Charles, Elliot, or another attorney on the blockchain, cryptocurrency and decentralized finance team. We hope you enjoy the episode.

Trusts are typically utilized as part of an estate plan or for asset protection purposes, and investors in cryptocurrency and other digital assets, like NFTs and tokens, are increasingly seeking to incorporate these investments into their trusts and estate planning.  In this episode of the Withers talks: cryptocurrency podcast, ‘Trusts issues with cryptocurrency - a European perspective,’ podcast host Charles Kolstad is joined by Natasha Stourton, partner on Withers’ trusts, estates and inheritance disputes team in London, and Roberto Bonomi, senior associate on Withers’ private client and tax team in Milan, to share insight into  European individuals and trustees holding crypto assets in a trust.    Natasha leads the episode with a discussion on top considerations for trustees who are asked to hold cryptocurrency as part of a trust fund in England, a common law country. Roberto follows with how Italy, a civil law country, differs in its view of the treatment of such trusts. Our guests also discuss non-domiciled resident programs and how the rules can change for investors and trusts where the settlor is a non-dom.  You can also read more about NFTs on our webpage, Clarity in a changing art market: NFTs.

Cryptocurrencies and NFTs have enjoyed an increase in interest all over the world, including in Asia. In this episode of the Withers talks: cryptocurrency podcast, ‘Investing in NFTs and crypto assets – practical perspectives from Asia,’ podcast host Charles Kolstad is joined by three insightful guests who share their views on the landscape and hot topics related to cryptocurrencies and NFTs in Asia.  Podcast host Charles Kolstad is joined by Shaun Leong, international arbitration specialist with substantial experience in technology disputes in Withers’ Singapore office, and by clients El Lee, board member and director of Onchain Custodian and Onchain Digital, and Shaun Djie, founder of Tokocrypto, the first regulated cryptocurrency exchange in Indonesia.  The episode opens with a discussion of the new token launched by Tokocrypto, TKO, and what it means for investors and the market.  Our guests also discuss the rise and role of a custodian in protecting crypto investments and top considerations and risks for investors in NFTs in Asia, as well as the enforcement landscape in Singapore and Asia more broadly, where laws are developing quickly.  Listen to our speakers on this fascinating topic, and please reach out to them with any questions or to share your comments.  You can also read more about NFTs on our webpage, Clarity in a changing art market: NFTs.

NFTs have fueled a boom in digital art, from established artists working in the new medium to athletes, influencers and others creating new collectibles that people are buying for millions of dollars, for example Twitter’s Jack Dorsey selling his first tweet ever as an NFT for over $2.9 million. In this episode of the Withers talks: cryptocurrency podcast, ‘How NFTs are shaking up the art and music world,’ podcast host Charles Kolstad is joined by Diana Wierbicki, head of our global art practice in Withers’ New York office, to discuss NFTs in art and music, including the buzz they are creating at the intersection of art and crypto and top considerations for individuals beginning to invest in them.As Diana introduces in her early comments, an NFT, or non-fungible token, is a digital certificate of ownership and it can hold creative work like a song or a digital work of art.  Artists sell digital work as NFTs to offer buyers a unique digital commodity that has been authenticated with blockchain technology. An investor holds the NFT in their digital wallet and experiences the digital art when they open it.  For people who are interested in buying or selling NFTs, what are the critical issues from a legal and regulatory perspective?  What are the risks, tax considerations and is there insurance?  What’s next in this space?  Listen as Diana dispels the confusion around NFTs and discusses with Charles the NFT excitement from both the artist and investor, or art collector, perspectives.   You can read more about NFTs on our webpage, Clarity in a changing art market: NFTs.

This episode of the Withers talks: cryptocurrency podcast is titled, ‘The rise of decentralized finance (DeFi).’  As with many areas of the broader economy in which suppliers are trying to get closer to consumers and cut out intermediaries and middlemen, DeFi disrupts centralized financial services by creating a market where financial transactions can take place directly between two parties, without requiring a central authority.  DeFi seeks to include all of the same activities of our current financial system, like borrowing, lending, trading and pledging, in a more efficient, transparent and accessible way while reducing risk.  And it continues to grow. Podcast host Charles Kolstad is joined by Ridge Barker, chair of the corporate finance team in Withers’ Greenwich office, as well as Joe Bambara, CIPP/US, attorney/technologist and consultant to Withers, to discuss the ins and outs of DeFi within the cryptocurrency and digital asset space for experienced crypto investors and novices to DeFi alike.  How does DeFi differ from our current financial system? What are the products and components of the ecosystem, and who are the participants currently? What are the investment opportunities in DeFi? How are taxes affected by DeFi transactions? What are the regulatory and securities risks for developing DeFi products? Listen as Charles, Ridge and Joe discuss all things DeFi in our latest podcast episode.

This next episode of the Withers talks: cryptocurrency podcast, ‘Tax considerations for UK crypto investors,’ focuses on the current tax landscape and top considerations for crypto investors, day traders and miners in the UK.  In a lively discussion between members of our US and UK tax teams, podcast host Charles Kolstad is joined by Lauren Rapeport, an attorney in our private client and tax team based in Withers’ London office, who advises clients invested in cryptocurrencies.In the UK, Her Majesty's Revenue and Customs (HMRC) have tried to bring crypto assets into the existing tax framework.  So what does that mean for crypto investors?  Are hardforks and airdrops taxable events?  What are the reporting requirements for investors in cryptocurrencies, and how do the tax treatment and approach to enforcement in the UK differ from the US?  Listen as Lauren Rapeport and Charles discuss this timely topic in the evolving world of cryptocurrency. 

In this episode of the Withers talks: cryptocurrency podcast titled, ‘Cryptocurrency issuer considerations & European regulation,’ podcast host Charles Kolstad is joined by Giorgio Vaselli, a tax attorney in our Italian private client and tax team based in Withers’ Milan office, who regularly advises clients invested in cryptocurrencies. The episode begins with an overview of the key assets and players in the crypto market including payment tokens, security tokens, utility tokens, investors, issuers, miners, wallet providers, exchanges and others.  If you’ve wondered how these are defined and fit into the crypto ecosystem, Giorgio’s early comments put these key terms in context.  He and Charles also discuss initial coin offerings (ICOs), initial token offerings (ITOs) and the issues they raise for both investors and regulatory bodies, before turning to the European regulatory landscape related to digital assets and cryptocurrencies, key anti-money laundering (AML) directives and recent developments like the European Union’s DAC 7.  

This episode of the Withers talks: cryptocurrency podcast is titled, ‘What is the future of crypto regulation?,’ and focuses on the regulatory landscape for enterprises in the cryptocurrency space as the new Biden administration gains its footing in 2021.  Podcast host Charles Kolstad, tax and corporate partner in Withers' Los Angeles office and noted author and speaker on cryptocurrency, and Christopher LaVigne, partner in Withers New York litigation team who has several enterprise clients in cryptocurrency, discuss key regulatory developments and enforcement activity affecting businesses that operate in the US, and what is on the horizon for enterprises in the areas of cryptocurrency regulation and enforcement. 

It is an exciting time in the world of cryptocurrency as it becomes more institutionalized and accessible and valuations touch all-time highs in recent months. But entering a market that is still not fully established can be daunting, especially when dealing with one’s own investments. In this episode, ‘So you are thinking of investing in cryptocurrency,’ we discuss key factors for individuals who are considering an entrance into the cryptocurrency market and for those who have just started out. Charles Kolstad, tax and corporate partner in Withers' Los Angeles office and noted author and speaker on the subject, and Joe Bambara, attorney technologist and consultant in Withers' New York office, share insight on topics that are top of mind for new investors in the market. Joe provides insight and guidance on why someone would want to invest in crypto, where they can start and how their investments gain value. In addition, Charles defines the paths to liquidity for crypto investments and offers guidance on tax considerations for new investors.