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Due to the different regulatory policies of various governments, high-net-worth cryptocurrency investors are becoming more and more "struggling", and those countries that can "cash" cryptocurrencies have naturally become new "safe havens". So, how do cryptocurrency investors face this situation? Why can St. Kitts be a "talisman" for cryptocurrency investors around the world?
First, the global "pursuit" of cryptocurrencies, the disclosure of virtual assets is preparing for the momentum
Cryptocurrencies are not a financial product that has been legalized all over the world, and the disclosure of these virtual assets in most countries is gaining momentum. In 2020, 137 countries and regions reached a consensus under the call of the OECD and the G20, and issued a regulation with a long name, called "The Tax Treatment of Virtual Currency and the Current Tax Policy Hotspots", this document is mainly for the definition and scope of virtual assets and crypto assets, giving clear provisions. At the same time, the OECD also vigorously promotes the process of exchanging tax-related information in global financial accounts, and is committed to the hope that crypto assets will also be included in the scope of the CRS Common Reporting Standard, so that crypto assets will also become an important part of the global tax intelligence exchange. This is a big framework trend, let's take a look at how European and American countries face crypto assets:
1. European Union
The price of Bitcoin and other cryptocurrencies has continued to soar, which together has led to the rapid appreciation of other crypto assets, which has attracted great attention from the regulatory authorities of EU countries. As a result, the European Union introduced DAC8 in 2021, focusing on anti-money laundering, regulating tax intelligence in the process of investment, payment and circulation of crypto assets.
2. United States
The U.S. Treasury Department announced that it will invest $80 billion in the Internal Revenue Service (IRS) over the next 10 years to support the upgrading of the tax system, create the most rigorous real-time bank transactions, and track and report to the IRS. At the same time, the IRS is also officially authorized by the federal court to obtain all information about people who use virtual currency to trade more than $10,000.
Second, what roles can the St. Kitts passport play?
With the influx of a large number of cryptocurrency investors, this young and unregulated asset class is getting larger and larger. Due to the different regulatory policies of various governments, high-net-worth cryptocurrency investors are becoming more and more "struggling". So, how do these investors and the Russian billionaires we mentioned earlier face this situation?
Speaking of digital currencies and cryptocurrency paradises, there is one country that must be mentioned, and that is St. Kitts. In 2021, the St. Kitts government passed the Virtual Assets Act, creating a complete legal regulatory system for cryptocurrencies and evolving Bitcoin and virtual currencies to the point of national legalization. The blessing of this bill has made more and more currency circles bigwigs begin to abandon Their American citizenship and embrace St. Kitts.
For example, the well-known Bitcoin angel investor, Roger Ver, known as the "Jesus" of Bitcoin, is a citizen of this country. And Pavel Durov, known as Russia's Zuckerberg, who pioneered the Crypto Instant Application Platform (TON), is also a citizen of the country. St. Kitts passports can play the following roles:
1. Protect the privacy and security of personal accounts
Combining assets such as cryptocurrencies with a second identity can achieve the purpose of unleashing financial autonomy and wealth diversity. Cryptocurrencies are valuable assets that allow to be sold, traded, or given away to others as they wish. In St. Kitts, the legalization of transactions has allowed the exchange of virtual assets and fiat currencies, and the exchange between virtual assets, to be legally guaranteed.
2. Tax advantages
There is no capital gains tax, property tax and income tax, and the safety of local assets is strictly guaranteed by law, and so on. All income, interest, gifts, property and inheritance outside St. Kitts are tax-free.
3. Visa-free
With this St. Kitts status, you can travel visa-free to more than 150 countries or regions, including the United Kingdom, Schengen, Singapore, Hong Kong and so on. Visa-free travel is especially important for people like Rogerville who have given up on U.S. citizenship, and visa-free travel with multiple identities will be wider.
The cryptocurrency market is notoriously volatile, so these big guys diversify their portfolios into more stable assets, helping to ensure that their wealth is preserved. However, this can be a challenge for countries with strict regulatory and tax legal systems. A common saying that many financial gurus say is that Plan B wants you not to use it, but you must.