Citywealth Crypto Club News

Date: 12 May 2023

Karen Jones

The latest Crypto events, articles, announcements and news.


Citywealth Crypto Club next meeting: 6th June 2023

The Citywealth Crypto Club is a network of professionals, investors, and enthusiasts of the crypto industry. The club aims to promote the #safeadoption of crypto and to introduce good actors in the space. Our next speaker will be Lord Holmes of Richmond MBE, Member of the House of Lords – speaking on the current state of regulation in the blockchain industry. Founding members also join our crypto editorial board.

Previous speakers

Read about the crypto club and crypto accreditation


Proving source of wealth

As regulation creeps into crypto whether by retrospective enforcements or government design, having partners to work with in the space is crucial for peace of mind. Henry Burrows is CEO and Co-Founder of Hoptrail which is a service that helps with ‘crypto source of funds and source of wealth analysis.’ Henry says “This year Hoptrail has been deployed to conduct crypto source of wealth analysis on more than 50 property transactions in the UK where digital asset proceeds were used. We are now the leading provider globally of crypto Source of Wealth (SoW) analytics for real estate transactions.”

Read the full article here

Announcements and news:


Ben Lee joins Andersen (UK) from PKF Francis Clark

Ben a taxation partner says of the move “I’m very excited to be working alongside such talented and experienced individuals; a team that has well deservedly been shortlisted as a finalist for “Best Specialist Team in a Law or Accounting Firm” at the #tolleystaxationawards2023 next week. Looking forward to being part of this growing team and the services offered to clients within the digital asset space.” Andersen (UK) has Zoe Wyatt as Partner and Head of Crypto & Digital Assets at Andersen LLP. They have a strong crypto and Web3 sector practice which includes Strategic advice and project management to Web3 companies; DAO legal wrapper structuring; Impact of a DAO and community voting on anti-tax avoidance rules; Private and public token sales; Character of NFTs for tax purposes; VAT on token sales, NFT sales and inter-company transactions; Accounting treatment and revenue recognition on token sales; Tax efficient acquisition of tokens by founders and team; Strategic input on crypto tax investigations and Strategic input on valuation of tokens / token rights. Zoe has received the following accolades and positions of responsibility for her work in crypto: Top 100 Crypto Adviser – Citywealth.


New hire for MME Legal | Tax | Compliance

One of the top fintech /crypto firms in Switzerland, MME Legal | Tax | Compliance, has hired Ronald Kogens as partner. He specialises in tech/fintech law, contract law, VC-financing and financial market law with a focus on disruptive technologies, DLT (blockchain technology) and cloud solutions. He was previously partner with MLL Meyerlustenberger Lachenal Froriep and was also at EY.


Lawyers respond to proposed asset safeguarding rule by the SEC

The SEC plan to expand the current custody rule to protect a broader array of client assets and advisory activities to the rule’s protections which include: Enhance the custodial protections that client assets receive under the rule; and require update related recordkeeping and reporting requirements for advisers. Like the current custody rule, the safeguarding rule would require advisers with custody of client assets to maintain those assets with a qualified custodian, with very limited exceptions. A qualified custodian generally is a federal or state-chartered bank or savings association, certain trust companies, a registered broker-dealer, a registered futures commission merchant, or certain foreign financial institutions (“FFI”). Under the proposal, a qualified custodian would be required to have “possession or control” of advisory client assets. The proposal would require a more robust set of requirements for an institution to be an FFI that is eligible to serve as a qualified custodian. The proposal would also further specify the way qualified custodian banks and savings associations must hold client assets.  Joshua Ashley Klayman Kuzar of Linklaters, New York shares her comment letter on the topic.

Bitcoin is down – just below $26,355  12/05/2023

Crypto news:

Bittrex shuts down in USA and initiates Chapter 11

Following SEC litigations and enforcement actions that started with Ripple but have since extended with great pace, many exchanges have retreated from the USA citing difficult trading conditions. The latest is Bittrex US. Bittrex is ranked 60th of crypto spot exchanges, trading around $7mn a day compared to Binance at approx. $9bn and Coinbase at $1bn.They will shut down all its US operations and are using Chapter 11 to initiate proceedings. Their statement says this has no impact on Bittrex Global. Investopedia say Bittrex is available in 45 U.S. states, (excluding Connecticut, Hawaii, New Jersey, New York, and Vermont). One of its benefits is a large selection of cryptocurrencies (250) which is a lot of altcoins when compared to competitors (which one could argue are one of the big problems in the sector with pump and dump schemes). Bittrex was founded in 2014 by engineers Bill Shihara, Richie Lai, and Rami Kawach, and is headquartered in Seattle. This exchange initially offered only crypto-to-crypto trading, but it recently introduced fiat-to-crypto trading.

Rachael Muldoon, Maitland Chambers comments “Interestingly, Bittrex Global’s current Terms of Service at cl. 6.2 provide that legal title to the tokens deposited into the standard Hosted #Wallet transfers to the exchange. As such, these #token holdings are ostensibly company assets as opposed to users’ in the event of insolvency”. :

Bittrex statement:

Coinbase and Pepecoin  (meme-coin) bun-fight

Pepe is to crypto what bread is to sandwich. Pepe is the original crypto meme frog with either a cigar if trading candles are green or a MacDonald’s hat if red. The coin launch saw an enormous rise in price (pump), but the jury is out on its longevity although Pepe mania is real. Coinbase head of legal, Paul Grewal, received criticism and has apologized for pointing out some of its bad history which included the frog wearing a nazi stormtrooper hat. The crypto community said Pepe relates to so much more in history than just one bad meme. Coinbase have not listed Pepecoin and noise in the sector says they are refusing to do so. Beeple NFT artist who sold for $69million with his 5000 days artwork made an NFT of the bun fight: Coinbase v Pepe army

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To have your crypto news featured on which serves the UHNW private wealth management and private client sector email Editor, Karen Jones / 020 7487 5858 / 11a Montagu mews north, London W1H 2JZ

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