Private Wealth Services – Digital Assets

  • An unprecedented digital wealth revolution has been created by the proliferation of digital assets.
  • With the federal government getting increasingly involved with crypto-related issues, the use of cryptocurrencies could become the new "normal," and may play a substantially increased role in cross-border and other funds transfers.
  • With an eye on the developing regulatory environment, the lawyers on Holland & Knight's Private Wealth Services Digital Assets Team crafts flexible plans for estates with digital assets.
Gold coin symbolizing digital currency

Overview

The rapid proliferation of new and wide-ranging digital assets has created an unprecedented "digital wealth revolution." In just a few years, thousands of "crypto-millionaires" have been created by the explosion of value in various cryptocurrency and other digital assets, the explosion of the non-fungible token (NFT) market and the creation of other unconventional digital marketplaces. Along with the emergence of decentralized finance, the increasingly widespread ownership and use of digital assets has created opportunity and challenges for clients.

Recent government action has compelled interagency collaboration in reporting on crypto-related issues, including consumer/investor protections, privacy, climate change, social safety net programs and cybercrimes, among others. In addition, the federal government is contemplating design and introduction of a U.S. central bank digital currency (CBDC). CBDCs and stablecoins are beginning to normalize the use of cryptocurrencies and may be the future of cross-border and other funds transfers.

Amid emerging regulatory environments and rapidly changing platforms, Holland & Knight's Private Wealth Services Digital Assets Team is up to date on the latest developments in cryptocurrency, digital finance and other virtual assets. Our attorneys are well able to serve the digital planning needs of our high-net worth clients and work to ensure that their financial interests are protected.

Estate Planning

Holland & Knight's Private Wealth Services Digital Assets Team crafts flexible and creative plans for estates with digital assets and leverages our attorneys' knowledge and experience with these asset classes to meet our clients' needs. Our lawyers also advise and educate clients regarding how these assets work, how regulations governing them are constantly evolving, and how best to ensure that such assets can be accessed by and transferred to future generations.

Tax Compliance

New guidance on digital assets from the Internal Revenue Service (IRS) and other taxing authorities is being continually released, and significant changes in the regulatory environment for digital assets are expected. The experienced lawyers on Holland & Knight's Private Wealth Services Digital Assets Team are monitoring and keeping abreast of these changes, and we use this knowledge to advise our clients on the appropriate treatment of virtual currency and other digital asset investments and transactions to help them remain tax-compliant.

Estate Administration

Holland & Knight's Private Wealth Services Digital Assets Team advises clients on the post-death transfer and estate administration of digital assets, including transferring cryptocurrency from exchange platforms, as well as the transfer of digital wallets and keys, all without compromising the integrity of the distinct protections of blockchain technology. The challenges of transferring virtual assets at death can be avoided with careful advance planning.

Insights