KYC for Businesses


(Cypher Investor) #1

Hi @canesin, @ethan and team, will it be possible for users to complete KYC as a company/business? Registering ownership of :nex_logo: as a personal asset vs as a company asset will have different legal and tax implications. Some users who already own crypto-related businesses may prefer to have their :nex_logo: as registered company assets rather than personel assets.

(Jump Around) #2

It would have to do with what money was used to purchase the NEX. Ie. if you did the KYC as yourself (as a business owner) and then used a corporate/company bank account to purchase the tokens through the ICO, it should then be a corporate asset I would argue. If you purchased it with your own money, you would have to do a FMV disposition from yourself to your company if you wanted it to become a corporate asset. In some countries you can also do tax-free deferred dispositions into your company from yourself without triggering a gain or loss.

If you are looking to move it into a corporate account, I would suggest looking into it soon rather than later before more gains/losses accrue on the property. Right now wouldn’t be a bad time given it is trading roughly around ICO price.

(Cypher Investor) #3

@JumpAround thanks for the response, however I’m not sure it answers the question. What I’m trying to get at is that to receive dividends from staking users will need to have a KYC approved account and what I’d like to know is will there be a way to differentiate an individuals account from a company’s account. Suppose you have some personal :nex_logo: tokens and are also an owner/director/employee of a company that has :nex_logo: tokens as assets, will there be a way to differentiate between two accounts controlled by the same user?

r.e. FMV disposition

The point about doing an FMV disposition is very relevant, not something I was unaware of however anyone else who’s interested may find it useful to know, thanks for including it.

(Jump Around) #4

I agree with you for sure, It would be very user friendly from a UI perspective if they have many separate interfaces showing different accounts attached to one key/KYC (ie. One for a business, One an individual)

However, from a tax perspective, your authority would still likely make you trace back each token to the cash source for ownership verification.

Given each token pays equivalent dividends (depending on staked time), it should be easy to calculate the business vs personal portion for the assets and Income. Correct me if I am wrong, but I assume your referring to some sort of interface within the suite that would calculate this for the users easily, and let them toggle between accounts, etc. I think this would be a very good idea

(Cypher Investor) #5

Having everything all in one suite under one account with the ability to switch between the two and calculate individual and business income would be great but maybe a bit much to ask early on. What I was thinking is more like having two separate accounts (keys and all) with the ability to flag one as personal and the other as business, I’m guessing we wouldn’t be asking too much from the team just to be able to flag an account as “business”. More of an MVP than a full solution kind of approach.