Cryptocurrency / Crypto Assets expertise
2021 is proving to be a watershed year for cryptocurrency and other crypto assets.
Bitcoin, the world’s most well-known crypto asset, has experienced a staggering bull rally. Its value has skyrocketed to record highs, at times in excess of NZ$85,000 (US$60,000) per coin with a market capitalisation crossing the US$1 trillion threshold, placing it in an exclusive club with US tech giants Microsoft, Apple, Amazon and Google’s parent company, Alphabet.
A pandemic-fuelled explosion in online commerce, global governmental regularisation, expansionary monetary policy on an unprecedented scale from numerous central banks, relative scarcity of supply, growing retail interest, a tidal wave of institutional interest (from major financial and corporate institutions such as BNY Mellon, Goldman Sachs, JPMorgan, Citi, Morgan Stanley, BlackRock, Mastercard, Square, MicroStrategy, Visa, PayPal and, most notably, Tesla which converted US$1.5 billion of its cash reserves into Bitcoin in January) – along with a vocal billionaire advocacy group including Elon Musk (Tesla), Jack Dorsey (Square and Twitter), Michael Saylor (MicroStrategy), Tyler and Cameron Winklevoss (Gemini, ex Facebook) and Michael Novogratz (Galaxy Investment Partners) – have all played their part in this year’s crypto asset boom.
Crypto assets, it appears, have finally come over from the fringes and in from the cold. The mainstream now appear to see them as a new asset class and – at least in relation to Bitcoin – as a solid company investment. Some devotees even look at Bitcoin as a viable alternative to traditional fiat currency.
At Stace Hammond, our crypto law experts are cognizant of the expanding pervasiveness and importance of crypto assets and platforms, throughout the global financial and commercial landscape. Like you, we are passionate about this exciting, developing, ecosystem of digital technology and commerce. We understand the various legal implications this presents for both individuals and business. We want to assist you and share in your crypto journey and to help you achieve your digital goals – whether that means assisting you to understand and navigate the legislative hurdles of an initial coin offering or peer to peer lending, or simply the tax implications of trading a meme coin.