The world of finance is undergoing a profound transformation, with cryptocurrency emerging as a legitimate source of funds for investors and individuals alike.
The past year has ushered in an era where cryptocurrency and global mobility have converged like never before.
Many countries have embraced this trend and opened their doors to crypto-savvy investors.
These programmes are rewriting the rules of investment, offering opportunities for those seeking financial freedom and borderless living.
Some countries, such as Portugal, Dominica, St Kitts and Nevis, Vanuatu and Grenada, have taken the reins in embracing cryptocurrency as a source of funds to apply to their residency or citizenship-by-investment programmes.
However, it requires a careful navigation of the current system.
Here, we will explore how governments now accept cryptocurrencies as a source of funds and how they can be converted to fiat currencies for citizenship-by-investment transactions.
Cryptocurrency as a source of funds
In recent years, cryptocurrencies such as Bitcoin and Ethereum have gained widespread acceptance as a legitimate store of value.
Investors and individuals are increasingly turning to cryptocurrencies as a means of diversifying their financial portfolios.
As a result, many individuals have significant holdings of cryptocurrencies, which they view as a valuable source of funds.
Traditionally, governments that provide residence and citizenship-by-investment programmes have assessed an individual’s or entity’s capacity to invest by examining their liquid funds.
However, the rise of cryptocurrencies has introduced a new dimension to this evaluation process.
Now, it is more than just having liquid assets in traditional currencies. Individuals and entities can demonstrate their capacity to invest through their cryptocurrency holdings in addition to assets.
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Conversion to fiat currency
While cryptocurrencies are viewed as valuable assets, they are not universally accepted as a direct form of payment by governments and many traditional businesses. This is where the need for conversion to fiat currency arises.
Individuals and entities may have significant cryptocurrency holdings. Still, they may need to convert these digital assets into US dollars or other currencies to meet various financial obligations, including tax payments.
To facilitate this conversion process, they can turn to third-party companies specialising in cryptocurrency-to-fiat conversion services.
These companies play a crucial role in helping people convert their cryptocurrency holdings into traditional currencies, such as the greenback.
Government compliance
Governments accept cryptocurrency as source of funds, however, they do not accept the asset class as a way of direct payment.
One of the primary reasons individuals and entities need to convert cryptocurrency into fiat currency is to comply with government regulations.
When individuals or entities need to demonstrate their source of funds to government authorities, they can provide statements from cryptocurrency platforms.
These statements confirm the value of their cryptocurrency holdings in traditional fiat currency, providing governments with the assurance they need regarding the capacity to pay or invest.
At the time of payment, a third-party cryptocurrency conversion service must be engaged and they must transfer the funds into the client’s account, and subsequently the client transfers the funds to the government.
Navigating the landscape
Cryptocurrency has evolved from a niche digital asset to a mainstream source of funds for investors and individuals.
As this transformation continues, bridging the gap between cryptocurrencies and traditional financial systems is crucial.
The acceptance of cryptocurrencies as a source of funds, coupled with the availability of third-party conversion services, facilitates this integration and ensures that individuals and entities can seamlessly meet their financial obligations while holding digital assets.
While cryptocurrencies offer new opportunities for financial flexibility, it’s essential to work within the framework of government regulations.
Additionally, it would be best to go with a trusted partner to help navigate this evolving landscape, especially considering regulations within each programme and the government agency are constantly changing.
For example, Grenada does not accept trading through Binance, but accepts trading through Binance US.
In conclusion, the intersection of cryptocurrency and global mobility in 2023 is a testament to the ever-evolving landscape of finance.
Countries like Portugal, Dominica, St Kitts & Nevis, Vanuatu and Grenada open up exciting possibilities for investors and individuals seeking financial freedom.
Veronica Cotdemiey is chief executive of Citizenship Invest
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE currency: the story behind the money in your pockets
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Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
More on animal trafficking
Company%20profile
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Mohammed bin Zayed Majlis
'Cheb%20Khaled'
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Disability on screen
Empire — neuromuscular disease myasthenia gravis; bipolar disorder; post-traumatic stress disorder (PTSD)
Rosewood and Transparent — heart issues
24: Legacy — PTSD;
Superstore and NCIS: New Orleans — wheelchair-bound
Taken and This Is Us — cancer
Trial & Error — cognitive disorder prosopagnosia (facial blindness and dyslexia)
Grey’s Anatomy — prosthetic leg
Scorpion — obsessive compulsive disorder and anxiety
Switched at Birth — deafness
One Mississippi, Wentworth and Transparent — double mastectomy
Dragons — double amputee
Race card:
6.30pm: Baniyas (PA) Group 2 Dh195,000 1,400m.
7.05pm: Maiden (TB) Dh165,000 1,400m.
7.40pm: Handicap (TB) Dh190,000 1,200m.
8.15pm: Maiden (TB) Dh165,000 1,200m.
8.50pm: Rated Conditions (TB) Dh240,000 1,600m.
9.20pm: Handicap (TB) Dh165,000 1,400m.
10pm: Handicap (TB) Dh175,000 2,000m.
Warlight,
Michael Ondaatje, Knopf
The%20specs
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THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
57%20Seconds
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