Form TD F 90-22.1 - Foreign accounts (accounts held >10K total anytime in yr)
Form 8938 - Foreign assets (accounts/stock/interest >50K end of year & >75K anytime in yr)
Form 5471 - Foreign corporation Ownership & Subpart F income (>10% owned IBC)
Yes we are ratting out the offshore brokers when we file taxes, but you have no choice.
yes you must tell the U.S. goverment everything. people should do there own research and take it from there.
Green is hostile to offshore US traders, he acts like we are breaking US laws.
never use them, im sure you can find a good trader accountant somewhere
I appreciate the responses. Looks like I need to find a solid International Tax Law Attorney. I actually asked coinexx about how they felt about US citizensâ listing their coinexx accounts on the FBAR. The support person was very helpful, saying she escalated my question to management, but I have not received a response yet from them. I have a feeling they wonât respond to that question.
I guess the next question is, using an offshore corporation to get access to a regulated (FSA, ASIC) broker where you can actually feel some security of your money not vanishing by the broker itself.
I contacted a few of them a couple years back, and a majority of them had no problem, EXCEPT, they wanted atleast $100k minimum, and/or nominee on the account must not be a US citizen. (Ava trade, Global prime, JFD were a few that were open off the top of my head. Never did contact any of the big ones like XM,IC Markets, or Pepperstone.
I have no problem following the laws of my country, it just baffles me the amount of extra tax revenue the US could be receiving from the Forex traders.
Then again they make it so difficult to follow the laws. up until Clint posted the screen shot of the indemnity agreement, which I think is a great idea, I thought the reason why regulated brokers would not accept US clients was because of the paperwork (hiring of more staff) that would be required to tract their US clients and report back to the US. I never knew that the Broker actually had to have a physical presence within the USA.
Keep up the good fight!
you have to prove your resident is offshore, if your a US citizen that have a offshore company you canât open account with a regulated broker unless you can prove you donât live in the U.S.A. , most brokers donât deal with the hassle so they donât except you because your a US citizen
A week ago, I posted a screen-shot of the INDEMNITY AGREEMENT which CME Group, the broker domiciled in Trinidad and Tobago, requires in order to open accounts for U.S. residents. I said in that post that I like the Agreement CME Group has put forward, and I think that all offshore brokers should use a similar agreement in order to be in compliance with the rules and regulations of the U.S. Nanny State.
Here is some additional information regarding the law this Agreement is designed to comply with.
CME Group refers to the law as CFR Part 240 Rule 15a-6
The full designation should be:
17 CFR 240.15a-6 Exemption of certain foreign brokers or dealers
Hereâs what the letters and numbers mean, followed by a copy-and-paste of the relevant portion.
CFR stands for Code of Federal Regulations. The Code is divided into 50 âtitlesâ, which are further subdivided into parts, sections and paragraphs. In the part of the law of interest to us, hereâs what the numbers designate:
17 designates the title â Commodity and Securities Exchanges
240 designates the part
15 designates the section
a-6 designates the paragraph
Regarding offshore brokers and their U.S. clients, the operative sentence appears at the very beginning of paragraph a-6. It says:
§ 240.15a-6 Exemption of certain foreign brokers or dealers.
(a) A foreign broker or dealer shall be exempt from the registration requirements of sections 15(a)(1) or 15B(a)(1) of the Act to the extent that the foreign broker or dealer:
(1) Effects transactions in securities with or for persons that have not been solicited by the foreign broker or dealer; orâŚ
In the case of offshore forex brokers, the exemption referred to above is exemption from the CFTC requirement for registration as an RFED (Retail Foreign Exchange Dealer).
The legalese that follows the word âorâ doesnât pertain to us, as individual, retail traders â and you probably donât want to waste your time wading through it. However, if you insist on having a go at it, here it is, as reprinted by the Legal Information Institute at Cornell University.
And, for more information on the CFR, here is the Wikipedia article:
I just chatted with Turnkey Forex, and as of some time in the last few days, they no longer accept bank wires for deposits or withdrawals â only Bitcoin now.
This may be temporary; they are evaluating whether and how to bring back bank wires.
And they are planning on accepting other cryptos as well. (I put in a request for Dash).
And I note that they didnât send out any notification to current clients. They only removed the âwire informationâ from the client Dashboard. So, lesson learned: Itâs always a good idea to check the website/company again before sending a wire (even if itâs not your first wire with them).
Iâm new to the cryptocurrency world. @pinman314 why Dash? Do you guys know which is the best alt coin to use for moving money in and out of our offshore brokers? So many choicesâŚBitcoin, Ethereum, Litecoin, Bitcoin Cash, ripple, zcash, etc.
I looked into this last year, The ASIC & EU brokers require US citizens to be ECP exempt from FATCA (>5M assets).
ETH and LTC are good ones to use.
BTC may have slower transaction times.
hyperscalper
Of the major coins I would rank them in this orderâŚ
ESMA is the new risk for all these offshore brokers. They put pressure on VISA & Mastercard and Iâm sure they are going after corresponding banks to shut down transfers to offshore brokers.
go to pepperstone tell them you donât live in the u.s. they will send you some info.
Thanks! Coinexx here I come!
Great insight on this, thanks!
As long as regulatory pressure persists, cryptocurrency solutions will inevitably be looked at. I have spoken with a few brokers regarding some of these solutions. For us traders, there are a few important issues to consider:
Since data transfer times (confirmations) and fees can vary, it is important to have many options, aside from BTC aloneâŚespecially when cryptocurrency sees wider adoption. The bull run that occurred during the last quarter of 2017 created serious problems for BTC transfer times.
Coins like Monero and others that offer anonymity could become more and more important in the future as regulatory pressure expands.
Since most brokers process payments manually, creating major withdrawal delays, having options like USDT or other alt-coins that are tethered to fiat are critical. If you make a withdrawal request and your request does not get processed for several hours, it will not matter much if the transfer times for LTC are faster than BTC. Since the cryptocurrency valuations can fluctuate so heavily during the course of hours, it is important for traders to be able to lock in their profits by having the option to convert to a fiat-tethered currency before making the withdrawal request. Obviously, it can go both ways, but nobody wants to see that their profits are worth 10% less than what they were when they initiated the withdrawal request.
CRYPTOS BANNED IN SOME U.S. STATES
I have a pal in Hawaii and I know they have banned cryptos
at the state level. Maybe more states. Whatâs an âhonest
traderâ to do ?? lol
hyperscalper