📌 1. Disclaimer (please read carefully)
This article is for educational purposes only and does not constitute tax, legal or investment advice
I support reasonable taxation and oppose illegal tax evasion.
If you have a high amount of crypto assets, please consult a lawyer or consultant with international tax experience.
📊 Two major categories of crypto-rich people
✅ 1) Assets < $500,000: You can live a comfortable life
For individuals with small assets, cryptocurrencies can be used for daily consumption in the following ways:
Use crypto cards to spend (such as Binance Card, Crypto.com, Coinbase Card, etc.)
Small amounts of fiat currency can be exchanged through centralized exchanges or P2P
Avoid purchasing large assets such as real estate and cars to avoid triggering audits or reports
in conclusion:
As long as you are not exposed to large-scale off-chain consumption, the tax risk is low and daily use is sufficient to maintain an "anonymous and low-key" lifestyle.
✅ 2) Assets > 10 million USD: You must establish a legal structure
If you are a crypto tycoon with "8-digit" or even "9-digit" assets, "crypto cards" alone are far from enough.
You can’t buy a luxury house directly with coins
You cannot withdraw $500KD directly from Binance
You can't even buy a Lambo without being tracked
At this time, you need to play the game "within the system".
🧠 Method 1: Borrow with currency as collateral to achieve “selling without selling”
This is the most common method used by crypto-rich people.
The operation logic is as follows:
Assume you hold $10M in BTC or ETH
Withdraw $3M as collateral
Borrow $1M USD through protocols (such as Aave, Compound, Anchorage, etc.)
The interest rate can be as low as 0% to 2%, and some structures can even be 0%
Take this $1M to spend, invest, and live
Why is it legal?
Because borrowing ≠ income, it is not a taxable item.
Without "sale", there is naturally no "capital gain"
Continue to hold assets and you will still benefit from price increases
Interest can be deducted from taxes, and a reasonable structure can legally avoid taxes
🧠 Method 2: Offshore + Intercompany Loan
This is the most commonly used structure for large family offices, venture capital funds, and hedge funds, and is now also widely adopted by crypto whales.
Here are the steps:
Set up companies in overseas low-tax jurisdictions, such as BVI, Cayman, Seychelles, etc.
Transfer crypto assets to overseas company wallets through OTC or NFT packaging
Set up a new company in your target country (e.g. Singapore, Portugal, Dubai)
The overseas company provides a "loan" (e.g. $5M) to your new company
Then what happens?
The new company receives the funds and legally records them as debt
The company can use this money to pay your salary, purchase assets, and make investments
Since it is a loan, you will not incur any tax events.
With clear accounts and complete legal records, "white capital" operates in the sunshine
🧠 Method 3: Simulate losses to clean up future tax burdens (advanced technique)
Suitable for high net worth users in high tax countries:
“Selling” crypto assets to your overseas company is marked as a “loss sale”
Reporting capital losses on your tax return
The actual value of assets held by overseas companies remains unchanged
You can continue to borrow money in the future and use legal liquidity
Reduce future capital gains tax liability
Note: A compliance path needs to be established through a legal team, as abuse is suspected of money laundering.
✅ Why is this structure legal?
Loans are not considered income and are not subject to income tax.
Inter-company actions have a legal basis and all accounts are traceable
No need to sell crypto assets, so no capital gains are triggered
Use non-KYC wallets, OTC or NFT transactions to interrupt the on-chain tracking path
This isn’t “loopholes” — this is exactly the legal way the wealthy have been playing the game for decades.
🧾 Summary:
The most dangerous thing in the crypto world is not volatility, but your ignorance of the rules
The truly wealthy never withdraw money, sell coins, or transfer money directly to themselves
They use structures to replace "transfers" and use debt to cover up "income"
You are not evading taxes, you are playing the same game that the rich play every day.
The system isn’t broken, it’s just not designed for poor people.
📌 If you have already made real money in crypto -
Learning how to build offshore structures, make good use of loan mechanisms, and understand tax rules are the "off-chain deployment" you should care about.
