EB-5 is one of the most popular immigrant investor programmes to become a permanent resident in the United States. Bitcoin emerged a new digital gold widely used decentralized crypto currency in the market. Recently SEC chairman announced decentralized currencies like Bitcoin cannot be a US security.
USCIS answered a question on accepting Bitcoin…
One question regarding source of funds related to the use of Bitcoin to transfer investment funds to the new commercial enterprise.
USCIS is currently considering issues involving virtual currency such as Bitcoin. USCIS cannot provide blanket assurances regarding any particular form of transfer, but we will continue to evaluate evidence provided by petitioners to determine whether the relevant statutory and regulatory requirements have been met, including evidence that the funds invested belong to the petitioner, and were acquired, directly and indirectly, by lawful means.
While most EB-5 lawyers do not accept Bitcoin, the best way is to convert Bitcoin to fiat, through a crypto exchange and then apply. Bitcoin is very volatile, is primarily the reason Bitcoin is not accepted as it is.
Once you convert to fiat , you have to explain with necessary documentation how you acquired Bitcoins legally and prove the source of funds. Bitcoin Cash, Ethereum and Litecoin are the other major virtual currencies with the largest market share in the Crypto industry. If you have created wealth using Blockchain technology, it should be easy to prove it in your application.
According to EB5Investors.com, Bobi Ahn, an immigration attorney mentioned
No official policy or guidelines have been issued regarding this, however, recent statements from the head of Immigrant Investor Visa Program Office suggest that the investors may indeed be able to invest using bitcoin for EB-5 purposes. Thorough documentation may be the key here.
According to Mona Shah & Associates,
Mona believes that while USCIS would likely accept Bitcoin, the challenge may come from banking institutions themselves. Clients who might want to put their money in escrow while their I-526 is processing may have to forgo that option if the bank doesn’t approve Bitcoin as a legitimate source.
USCIS would deny cryptocurrency if there was any evidence of money laundering, but Bitcoin leaves a paper trail disclosing the detailed path the funds take. CrypBrokers ensures that the identification matches at every juncture.
China and Vietnam are the biggest markets for EB-5 immigrant investor scheme. But both countries have already banned cryptocurrencies including Bitcoin trading and mining. On July 1, 2017, China announced new regulations further limiting the transfer of funds from China to another country to about RMB 50,000 ($ 7,500) per day per person. On January 1, 2018, further restrictions provides that an individual may withdraw no more than RMB 100,000 (approx US$15,530) annually from outside of mainland China.
On May 2018, Florida’s Seminole County is the first US Government agency to accept bitcoin or bitcoin cash to pay for property tax starting next month. It will certainly take time for widespread acceptance of Bitcoin by Governments.
IRS has announced,
Virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to as “convertible” virtual currency. Bitcoin is one example of a convertible virtual currency. Bitcoin can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies
For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. For U.S. tax purposes, transactions using virtual currency must be reported in U.S. dollars.
