Asset query, Bitcoin

Querier

Hello,

Just a query about assets and DROs, please.

Ahead of a DRO application, I am listing/counting all assets I have. I have a Coinbase account where I put £75 in back in early 2021, and it is now valued a little higher. As you know, crypto values go up and down, but my fear for any DRO is what happens if the value of held crypto continues going up, even if it doesn't reach the £1,000 (or £2,000) threshold. I know it must be declared, but how does the OR deal with crypto assets? And because of the value of my (very small) crypto, and the fact it won't reach £1,000 any time soon, would it be considered ok by the OR?

Also, if I were to sell the Bitcoin now or ahead of a DRO, would this be a concern to the OR? ie the selling/getting rid of assets 'on the cheap'..

Thank you

Platespinner123

Hi Querier

There's no £1,000 limit at all now, it's all £2,000 for any new DRO application. The only way this would be a problem would be if before your DRO application, or during the moratorium year, your total assets reached £2,000. As long as they stay under that level, the OR won't care.

If you're concerned about a possible massive cryptoboom taking you over the limit, you can sell the crypto now. If you're selling it through Coinbase it'll automatically be at 'market value', so there's no risk of getting rid of it on the cheap.

sourcrates

Its the insolvency service that deals with DRO`s, and the £90 cost does not buy much of their time.

You don`t list assets in a DRO, there is a £2000 threshold, and if you have more than that in asset value, you don`t qualify.

Anything under, you do, its a simple yes/no at the time of application.

There are no further checks on you, if your situation changes, its reliant on you to inform the IS.