Is Cryptocurrency a Valid Funding Source for EB-5 Investments?
If you are an immigrant seeking a green card in the United States, then you have a few options when it comes to how you do that. One of the options, if you have the capital, is using the EB-5 program to get a green card for yourself and your family.
The EB-5 Program is where you need to complete a set of tasks to bring value to the United States. You just need to create or invest in a business and grow it to have ten employees who are U.S citizens and who work full time in the business. Additionally, you need to work full time in the business, either as a worker or as a member of the board.
You also need to make an investment of $1,050,000 dollars if the investment is for a business that is a normal business or a high-employment area for investment. Now, if the business that you are investing in is a targeted employment area, then the donation is $800,000 dollars. Of course, if you have the capital then it is no problem, but what if you have made most of your money in cryptocurrency?
Can You Use Cryptocurrency To Fund EB-5 Investments?
Well, the answer is yes and no. While Crypto is a legitimate source of funds and is becoming more and more mainstream in the world’s economy, there are a few things about cryptocurrency that are worrying to investors, and you need to jump through a few hoops to make it all work.
The biggest problem with cryptocurrency is that it is anonymous. It is a currency that you can buy and trade in without ever showing off your identity, and while you might find that anonymity works well with trading cryptocurrency, it can become a problem if you are trying to invest because proving the currency is yours can be tough and also worrying for some investors who don’t want to take on the hassle of these types of EB-5 Visa Investments.
Plus, a U.S. Citizenship and Immigration Services (USCIS) staff member might not approve of this means of capital. They have denied Bitcoin traded funds and other cryptocurrencies before, which can be a problem.
How Do You Use Cryptocurrency For EB-5 Investments?
First, you need to look at the laws in the country where you are coming from. Many countries have very open laws on cryptocurrency and trading and regulations for cryptocurrency, but others do not.
To see how you can document your funds and also see if cryptocurrency is going to be approved as a source of investment capital, you need to examine the policy for cryptocurrency in the place you are coming from.
You will also need to gather as many documents and evidence as you can about your cryptocurrency. This can include providing an abundance of funds and having more than the required $1,800,000 or $900,000 dollars. You can also have receipts, tax records, bank statements, and other CSV files with you, and the more evidence you have the better.
Have Your Wallet Analyzed
If you have only bought crypto once and have held onto it for years, then ironically the proof of ownership is going to be very easy. However, if you have been using cryptocurrency and buying and selling things with it, then your wallet will need to be analyzed. Make sure to contact a third party blockchain-analysis firm so they can look through your wallet and transactions.
This can allow the firm to build a risk analysis, flag any suspicious transactions, and make sure all of your funds are legitimate. If they find that your wallet is clean and you have all the funds needed, then it can be easier for you to make your investment and have it be approved.
Study on The Rules or Just Pay in Cash
Using cryptocurrency for EB-5 investments is possible under the right conditions and forces you to follow a lot of rules. However, if you have made your wealth in crypto and that is where you want to go when it comes to your investing, then don’t worry about it. Just make sure you are looking up all the information and have all of your questions answered before you make the choice.
Otherwise, if you want a slightly easier time, just pay in cash if you can. It won’t force you to jump through all those hoops, and you can get started on building the business and those jobs. Regardless of how you make your investment, you will be able to get a green card for yourself and your family, as well as a long term and growing business that will support you when you get to your new home in the United States.