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Which type of subsidiary structure, wholly owned or subsidiary, is more commonly used in the cryptocurrency sector?

avatarBruno OliveiraDec 28, 2021 · 3 years ago1 answers

In the cryptocurrency sector, which type of subsidiary structure, wholly owned or subsidiary, is more commonly utilized? What are the advantages and disadvantages of each structure in terms of regulatory compliance, operational control, and risk management?

Which type of subsidiary structure, wholly owned or subsidiary, is more commonly used in the cryptocurrency sector?

1 answers

  • avatarDec 28, 2021 · 3 years ago
    In the cryptocurrency sector, both wholly owned and subsidiary structures are commonly used. Wholly owned subsidiaries provide the parent company with complete control over operations and decision-making. This structure allows for greater flexibility in adapting to regulatory changes and implementing risk management strategies. However, it also requires significant financial investment and resources. On the other hand, subsidiary structures allow for shared ownership and risk distribution. They can be beneficial for expanding into new markets and accessing local expertise. However, operational control may be more decentralized, and regulatory compliance can be more challenging to manage. Overall, the choice between wholly owned and subsidiary structures depends on the specific goals and circumstances of the cryptocurrency company.