#CryptoConveyancing
Suzanne Natalie Jeffers
Talk tech to me ??? Head of Growth & Community @ Binderr ?? Qualified Solicitor ?
Last week it was reported that billionaire Nick Candy was selling his luxury penthouse in Hyde Park. If you don't know him, #Candy is a British luxury property developer and interior designer.
His penthouse has been dubbed, 'Britain's most expensive apartment' and is on sale for ￡175million.
According to reports Candy said he will consider offers in both #Bitcoin and #Ethereum as they are a ‘big opportunity’. This further crystalises the idea that #fiatcurrency will be phased out and our future currencies will be #whollydigital, which is all very exciting, but I would be really interested in the #conveyancing of this transaction!
Conveyancers, how do you feel about this?
Maybe panel 8 of the Transfer (TR1) would read:
Consideration in the sum of ￡175m worth of Bitcoin as at the date/time.
Would the date and time be recorded as at the value of Bitcoin at exchange or at completion?
Surely, it would need to be calculated to the second, given the volatility of crypto.
Would exchange and completion need to be simultaneous because of the risk of fluctuation? Hmm.
Will conveyancing need a complete overhaul? Are smart contracts the future in the property market?
No one wants to talk about #TAX, but in terms of #SDLT, are there guidelines for purchasers using #Bitcoin?
Are there guidelines for #HMRC?
I'm sure there will be a plethora of HMRC manuals, which will have an array of vague tax advice. There are already some online manuals for crypto assets, but they all seem a little grey to me. (Some bedtime reading HMRC manual: CRYPTO10450).
Would traditional high street law firms steer clear of #Crypto due to their own regulatory and compliance risk?
Lots of questions remain unanswered.
I am really curious about the sale of #Candy's apartment and particularly who will draft the legals - definitely one to watch!
https://www.telegraph.co.uk/business/2021/04/14/britains-expensive-apartment-175m-bitcoin-accepted/
Corporate and M&A Associate at Linklaters
3 年Clients needs and wants should be of the most importance to us as lawyers. As a profession we have shown that we are able to adapt to new realities and although lawyers are often still associated with?being "old fashioned", the technology used nowadays when progressing a matter including use of AI proves different. During the last few decades we have changed the way our profession works from matters dealt by post only through introduction of fax machines and computers, introduction of case management systems and HM Land Registry! I truly believe that consideration in Bitcoin is likely to become reality. Using crypto technology presents a number of advantages, particularly in cross-border transactions allowing savings on currency conversion. Saying that I fully appreciate the challenges it may create namely the volatile nature of the currency, tax implications (not only in terms of SDLT buy also Capital Gains) and AML concerns. Possibly introduction of escrow accounts may be an answer? Crypto is becoming increasingly regulated and transparent with better transaction tracing systems.The possibilities of faster, cheaper and more efficient/secure processes are definitely merits not to be ignored.
Property, Land and Development Solicitor | Real estate law & conveyancing | Advising SMEs, landowners, developers, and land promoters
3 年Interesting, Suzanne! I imagine we'd see a decline in "straight to transfer" transactions, as there would undoubtedly be a fair bit to iron out in the sales agreement; as Peter says, not least how the fluctuating nature of digital currencies would be dealt with from a consideration standpoint. I'd also be curious as to tax, and imagine that the practise of pre-drafting returns for client approval might have to take a back seat, since it would be near-on impossible to calculate the liability until the exchange rate could be ascertained ??
Partner, Meaby & Co
3 年I’d like to think I’ll be retired Suzanne Natalie Jeffers by the time this type of thing comes to fruition and leave this caper to you youngsters!
Illegitimi non carborundum, "Jack of all trades, master of none, but oftentimes better than master of one!" Not the Dragon off the BBC, but I do wear cool socks!
3 年The biggest issue on this is the volatile nature of #cryptocurrency. One slight delay and the price could either have jumped or dropped in regards to what the final bill will be. I know Adrian Toulson was previously looking into this for one of his clients, but not sure how far it went. I think another big headache was in regards to AML checks on the funds being received and how the funds were held as agents. Amy Bell do you have any thoughts on this?