Traditional trust companies are beginning to reject "crypto millionaires", with anti-money laundering (AML) and source-of-wealth checks emerging as the main hurdles.
42 minutes ago
According to a report by the Financial Times, an increasing number of high-net-worth individuals who have amassed wealth through cryptocurrencies like Bitcoin are being rejected by traditional trust firms when seeking to set up offshore trusts for tax and wealth succession arrangements. Trust institutions are mainly concerned about fiduciary liability issues such as difficulty in verifying the source of funds, potential money laundering risks, sharp fluctuations in asset prices, and loss of private keys. The report notes that some trust firms specializing in serving digital asset clients are taking on such businesses through on-chain analysis and enhanced compliance reviews. However, most mainstream fiduciary institutions remain cautious, fearing future legal and reputational liabilities stemming from the source of crypto assets or their sharp depreciation.
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