A term used in corporate finance to describe bank accounts created and maintained outside the control of one’s country.
An offshore account is any bank account that was created in a foreign country and is generally funded from the proceeds of a person’s work in their own country. These accounts serve a variety of purposes, including as reserves for emergencies and as security against unreliable currency value fluctuations. The government of one’s own country may be aware or unaware of this account. If they know, it may have significant implications for the individual.
In crypto, as transactions are carried out online and globally, coins are often purchased with different currencies. However, some currencies are more valuable than others, so smart traders own offshore accounts to reduce the stress of using weak or fluctuating currencies.