Updated
GL-S-05
01 / In 30 seconds
The short answer
- What it is
- A cryptocurrency whose value is pegged to an ordinary currency or asset
- Why it is needed
- To use crypto infrastructure without sharp exchange rate swings
- The main question
- What exactly backs the peg and who confirms it
- For our purposes
- State programmes almost always require payment in ordinary money
- What is critical
- The source of crypto assets is harder to evidence than that of bank funds
02 / In plain words
What Stablecoin means
A stablecoin is a cryptocurrency whose value is pegged to an ordinary currency or another asset. The idea is to combine the convenience of crypto infrastructure — fast transfers, round-the-clock operation — with the relative stability of familiar money, without sharp exchange rate swings.
The key question for any stablecoin is what backs the peg. The mechanisms vary: reserves in ordinary currency and government bonds, backing by other crypto assets, algorithmic designs. Whether the peg holds under stress depends on the quality of the backing, the transparency of the reserves and the existence of independent verification. The market’s history includes cases where it did not hold.
There are two practical points for investment immigration. First: state programmes, notaries and developers almost always require payment in ordinary money from the applicant’s bank account. Second, and more important: evidencing the source of crypto assets in due diligence is harder than for bank funds — a traceable history is needed from the source of income to conversion into ordinary currency.
A case from practice
Part of a client’s capital was in crypto assets. We built the documentary chain in advance: source of income, transaction history, conversion through a regulated platform, credit to the bank. The programme investment was then made in ordinary money with a transparent source.
Where it is encountered
- International settlements in crypto assets
- Storing value without volatility
- Settlements for an online business
- Conversion before withdrawal to a bank
- Proof of source of funds
- Discussing payment for a programme
03 / What it covers
What is important to check
Backing
- What backs the peg
- Transparency of reserves
- Independent verification
Issuer
- Who issues it
- Jurisdiction and regulation
- Track record of stability
Compliance
- Source of the assets
- Transaction history
- Address analysis
Practice
- Acceptance by the bank on conversion
- Programme requirements
- Tax consequences
04 / How it works
How it looks in practice
Evidence the source of income
Keep the transaction history
Conversion through a regulated intermediary
Credit to a bank account
Programme payment from the bank
05 / Key facts
What you need to know
01
The peg is backed in different ways and not always reliably
02
Transparency of reserves is the key selection criterion
03
Programmes usually require payment in ordinary money
04
Banks analyse the source of crypto assets
05
Transactions in crypto assets may have tax consequences
Common mistakes
- Treating any stablecoin as risk-free
- Not keeping the transaction history and the source of income
- Converting through unregulated intermediaries
- Planning to pay for a programme with crypto assets
- Ignoring the tax consequences of transactions
06 / Expert advice
How to prepare in advance
If part of your capital is in crypto assets, keep the transaction history from the very start: source of income, purchases, transfers, conversions. Withdrawal into ordinary money is made through regulated intermediaries, where a documentary trail remains. Converting in advance with a transparent history is the only workable path to a programme investment.
What we do for you. Crypto assets are no obstacle to a programme, but they require more thorough preparation of the dossier. We build the chain from the source of income to the bank account in advance: reconstructing such a history after the fact is almost impossible.
Robert HaasHead of Company Formation
07 / Questions
Frequently asked questions
A cryptocurrency whose value is pegged to an ordinary currency or asset to avoid sharp exchange rate swings.
It depends on the quality of the backing and the transparency of the reserves. The market’s history includes cases where the peg did not hold.
As a rule, no. State programmes, notaries and developers almost always require payment in ordinary money from the applicant’s bank account.
Many do, but they will require evidence of the source: the source of income, the transaction history, documents from a regulated platform.
The history of all transactions from the very start: where the income came from, when you bought, where you transferred, where you converted. Reconstructing this later is extremely difficult.
As a rule, yes: transactions in crypto assets are taxed under the rules of your country of tax residence. The rules are confirmed separately.
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