MicroStrategy and why holding Bitcoin on balance sheets might go both ways
Several financial institutions have had a complicated relationship with the cryptocurrency since Bitcoin emerged to take centerstage in the global economy. Over the years, however, BTC has been fairly successful in fostering institutional adoption across the globe.
Even so, one thing remains constant – The legal and regulatory framework around Bitcoin.
The same was the topic of discussion during the latest edition of ‘Bitcoin for Corporations 2022.’ During the same, a panel of experts from MicroStrategy and Deloitte discussed holding Bitcoin on balance sheets.
Bitcoin and other digital assets have generally been in the news a lot over the last year. There have been some significant legal developments too, such as the Futures ETF approval. Also, there is a growing degree of interest and activity at the SEC, in the Congress, and even at the White House. A lot of this interest has been aimed at clarifying and establishing new rules and regulations governing the digital asset space.
But, here’s the question asked by Phong Le, President & Chief Financial Officer at MicroStrategy.
Have there been any changes to the legal framework for a buy-and-hold strategy?
MicroStrategy, the Fortune 500 company with a 125,051 Bitcoin-strong treasury, learned from implementing the strategy. Here’s what one of the panelists answered.
W. Ming Shao, Senior Executive Vice President & General Counsel stated,
“You’re a company that’s nearly buying and holding Bitcoin on its balance sheet, there aren’t many regulations that directly apply to you. It turns out that some Bitcoin-related activities are highly regulated.”
Regulations include anti-money laundering laws, commodity regulations, potential money service, business laws, etc.
“But if you’re just
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