Offering Crypto to Clients: Part 4 – Integrating into Practice

How to Navigate Compliance, Taxes, and Getting Paid

This is part four of a four-part series designed to walk financial advisors through the process of adding value by offering crypto to clients. Be sure to check out Part One, Part Two, and Part Three before reading this installment.

As we finish up our discussion on adding value to your clients by offering exposure to crypto, we’re going to discuss:

We recognize that, regardless of how interested you are in adding a crypto offering, there are challenges to integrating it into your business. Our goal is to be a continued resource as you navigate these topics.

Since compliance is both confusing and critical when you’re an advisor entering the digital asset ecosystem, it’s important to learn from investment advisors who are already experienced and engaged in this evolving asset class.

At Arbor Digital, we’re happy to open-source some of the compliance work we’ve done with other advisors. One of our guiding beliefs is that the decentralized, open-access nature of blockchain technology and digital assets and their benefits should be brought to the financial world.

For a complimentary consultation, you can use this link to schedule time with us. We also encourage you to check out our article, Crypto Compliance 101 for Financial Advisors, which includes valuable information and links to many helpful resources.


The tax ramifications associated with crypto investments are fairly straightforward and in line with other asset classes, with a few nuances. One common misconception, for example, is that like-kind exchanges of crypto before January 1, 2018 are not taxable events – a fallacy that the IRS has addressed here. The IRS has been cracking down on those who fail to report (or under-report) crypto gains, so you and your clients need to be crystal clear on what triggers a taxable event.

There are some excellent crypto tax resources out there, so we won’t reinvent the wheel here, but it’s worth your while to check them out:

There’s a lot of crypto information on the web, but these are three resources we trust. Be sure to check out a bonus tax episode of the Asset (r)Evolution podcast!

Getting Paid

If you’re planning to engage in conversations about crypto assets, certainly an important piece of the puzzle is how you’ll get paid. Charging an asset-based fee can be a challenge because digital assets tend to be volatile, but this is the fee structure we use at Arbor Digital and the challenges can be solved. Some advisors choose a fee-for-service model, which has the benefit of being straightforward and transparent for your clients, but these aren’t your only options. There are many different ways to get paid, and digital assets are challenging the traditional methods and accelerating the adoption of alternative solutions.

Ready to Take the Next Step Toward Offering Crypto to Clients?

Offering crypto exposure can help you differentiate yourself from your competitors, add more value to your existing clients, attract new clients, and build your business in an exciting direction. If you’d like help navigating crypto exposure for your clients, we can help! At Arbor Digital, our mission is to be your connection to the Digital Asset (r)Evolution. Reach out today to ask a question or to book a demo.

Want more digital asset content and education? Check out our Asset (r)Evolution Podcast, a weekly offering to help financial advisors gain knowledge in the emerging powerhouse that is digital asset investing.

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