Whilst the wealth management and private client industry has been slow to adopt crypto, crypto has been fast to move with new finance and art services emerging each year. A problem for the industry has been governments who have intervened to impose more laws on the sector but so slowly that wholesale confusion has prevailed. For the wealth industry it is wary of the past history of crypto which has involved legendary stories of drugs, guns and hitmen. It is no wonder there is a Chinese wall.
However, behind the white noise of bitcoin’s volatility; the infamous dogecoin tweeted by Elon Musk and fluorescent Lambo’s, the crypto industry is full of maths geeks, coders, traders and tech start-ups who are being seed funded by West Coast, tech billionaires who are in a hurry to unicorn. As the information about crypto grows and actors such as Bloomberg and Forbes feature these organisations, the pressure to understand and accept this new world has become apparent.
The wealth management industry and its advisors have found it difficult to get up to speed. As well as this, many crypto founders have found the private client industry woefully unprepared to deal with their issues. It has been a steep and frustrating learning curve all round. Some regions though, have shown themselves ahead on this topic like Switzerland, the Cayman Islands, the Isle of Man with its gaming history and the USA.
Death and taxes
So as laws change to allow custody and ETFs what are the main reasons crypto founders are engaging? Business is one reason but it is mainly because they’ve been forced to engage, with death, divorce, estate planning, litigation and taxes besetting them. This digital environment has encountered real world problems. As to how they engage, this is more complicated. A recent COVID private client lawyer survey and Editorial Board meeting conducted by April French Furnell at Citywealth has shown that advisors with solid crypto knowledge are hard to find.
For this reason, Karen Jones, CEO and Founder of Citywealth, who is also a private investor in crypto, has compiled a comprehensive survey to reveal the best crypto advisors and managers for 2021. Whilst this is a niche area now and small in size compared to the universe of private wealth we believe the potential is vast.
One interesting development is the early involvement from offshore trustees who are helping crypto businesses set up and managing portfolios for their clients. The taxation issue is also starting to become a big issue but partly resolved as owning coins in many jurisdictions is considered to be like owning ‘property’ and any gains to fall under Capital Gains Tax. With a few test court cases around, the legal world is getting a handle on what to do even if in the UK, HMRC say one thing and do another.
Citywealth crypto accredited – Recommended or Highly Recommended
Following our research we are delighted to introduce the “Citywealth crypto accredited” listings with rankings of recommended and highly recommended based on their answers to our research questions. We asked a series of questions focused on key competency areas such as cases or deals worked on; taxation; educational sources; knowledge of terminology; history with clients and the industry; jurisdictional clarity; size and type of deals and services being offered. As a result of the research, individuals selected for the rankings will be able to use an accredited logo to demonstrate to crypto clients that they have a superior understanding of their concepts and journey. It will enable a safe or safu list of approved advisors and managers to work with that have been independently verified by Citywealth.
Citywealth crypto club
The accredited advisors will be invited to an inaugural event to network and to help bring excellence to this emerging field. The Citywealth crypto club will continue to meet ongoing to provide a forum for conversation, clarity and business deals. It will be open to crypto founders as well as accredited crypto advisors. The first Crypto Club event will be held in 2022.
COMING SOON. The top 100 Crypto advisors and managers will shortly be informed of their ranking. Keep an eye out across social media for the accredited logos.
If you missed the chance to submit, you can still enter here to demonstrate your crypto credentials and be invited to join the Crypto Club.