Bitcoin Economy, a platform set to launch on February 3, 2014, operates with an anonymously registered domain and conflicting legal jurisdictions. Its website, bitcoin-economy.com, registered November 29, 2013, cites Seychelles as its corporate home, a known tax haven.
The company's Terms and Conditions state that Seychelles statutes and laws govern any claims arising from its use. But the Bitcoin Economy affiliate agreement contradicts this. That document claims the contract's formation, construction, and enforceability fall under the laws of the Netherlands. This creates an immediate legal ambiguity for affiliates.
Affiliates signing the agreement are told they are entering a contract with "Direct Selling Global News, Ltd., doing business as Bitcoin-Economy." This entity uses Hong Kong banking channels. Account number 848-535290-838 is held at HSBC Bank's Head Office, 1 Queen's Road Central, Hong Kong. The company's address is listed as RM 2106 21/F Lemmi Ctr, 50 Hoi Yuen RD, Kwun Tong KLN, Kowloon, Hong Kong, with a SWIFT code of HSBCHKHHHKH.
Martin Bylsma is named as CEO on the Bitcoin Economy website. His corporate bio credits him with significant roles in other multi-level marketing companies. He served as Managing Director for Europe at Vemma, General Manager for Belgium, the Netherlands, Luxembourg, and Iceland at Agel Enterprises, and Director of Field Support for Europe at ACN. Bylsma also held a General Manager position for Europe at Amway. His LinkedIn profile, however, lists his operating location as Amsterdam in Norway, a geographical inaccuracy. Amsterdam is in the Netherlands.
Bitcoin Economy's FAQ explains the choice of Seychelles for its holding company. It cites the benefits of a Seychelles International Business Company (IBC), which operates as a tax-free corporation. Such entities are designed for international business with no reporting or minimum record-keeping requirements, alongside comprehensive confidentiality features. The company states an IBC is not subject to income or profit tax by definition, making incorporation in the USA, Europe, or Asia seem impractical for their internet-based Bitcoin operation.
The platform offers a subscription-based training course as its core product.
