The place of digital currencies in the CBI world

Cryptocurrency is a paradoxical concept. It is based on decentralized technology that isn’t based on a single locality, but cryptocurrency investors can have wildly different experiences dealing with it based on where they are. Stringent regulations, high taxes, and outright bans can affect cryptocurrency investors, and that is why many of them seek out a second citizenship to alleviate the burden. As cryptocurrency is based on financial freedom, cryptocurrency investors seek location independence to complement it and achieve complete individual sovereignty. The easiest way for them to do this is by obtaining citizenship through investment, and luckily, there is a plethora of citizenship by investment programs for them to choose from. However, not all citizenship by investment programs have the same crypto-friendliness levels, and in this piece, we will cover those that best align with cryptocurrency.

Caribbean Citizenship by Investment Programs

The Eastern Caribbean countries of Antigua & Barbuda, Dominica, Grenada, St Kitts & Nevis, and St Lucia all have highly popular citizenship by investment programs that grant successful applicants robust passports. The “Caribbean Five,” as they are commonly referred to, have simple, affordable, and quick programs. But the appeal of those programs extends beyond their simplicity, especially for cryptocurrency investors, as they are as crypto-friendly as it gets. But the Caribbean Five’s allure for cryptocurrency investors does not stop at their program’s crypto-friendliness, as the countries themselves are magnets for cryptocurrency investors. The Caribbean Five are all members of the Eastern Caribbean Central Bank (ECCB), which itself launched its first digital currency, dubbed DCash. While not cryptocurrency itself, DCash highlights the Eastern Caribbean’s willingness to innovate and push ahead of traditional currencies. The Caribbean Five also has very crypto-friendly regulations. Antigua & Barbuda implemented a comprehensive Digital Assets Business Bill in 2020 that is one of the world’s leanest cryptocurrency regulations. St Kitts & Nevis is also pushing the envelope, having issued its Virtual Asset Bill in the same year. All of these Caribbean countries also offer outstanding tax frameworks for cryptocurrency investors. They do not impose global income, wealth, inheritance, and, most importantly, capital gains tax, which means cryptocurrency investors can get the best value for their investments. The ease of cryptocurrency dealings within the Caribbean is also above average. According to Bitcoin Maps, St Kitts & Nevis has 183 shops that accept Bitcoin payments. In comparison, the UK has 129, Portugal has 101, and Malta just has six. This means that in St Kitts & Nevis, there is a shop that accepts Bitcoin payments every 0.7 square kilometers. That figure is 0.0005 in the UK, 0.00018 in Portugal, and 0.0189 in Malta. St Kitts & Nevis also has Bitcoin ATMs, making life much easier for cryptocurrency investors. Caribbean banks are also setting up specialized services for cryptocurrency investors, and the financial sector is doing the same. An offshore trust or LLC can deal in cryptocurrency on behalf of an investor, making it easy to remove any location-related restrictions and capitalize on new opportunities.

Vanuatu Citizenship by Investment

Another program that is very crypto-friendly is Vanuatu’s citizenship by investment program. The Pacific nation requires investors to apply through authorized agents, and they can pay the investment amount to the agent, and then the agent pays it to the government. In some cases, an agent may accept payment in cryptocurrency, which can streamline the entire process. They can also apply with funds acquired through crypto-backed loans, but the same delicate approach of that in the Caribbean is required. Vanuatu, much like its Caribbean counterparts, does not impose wealth, global income, inheritance, or capital gains tax, making it an excellent destination for cryptocurrency investors.

Cryptocurrency and applying for Citizenship by Investment

While applicants cannot make their investment directly with cryptocurrency, as due diligence requirements need to incorporate traditional banking AML and compliance regulations, there are pathways for cryptocurrency investors to utilize their cryptocurrency within the program. These pathways, however, have to be tread thoughtfully. Since cryptocurrency and blockchain technology are not yet “conventional,” proving the source of funds can be somewhat more complex. That is where NTL Trust comes in. NTL Trust has created a highly sophisticated cryptocurrency compliance process that allows for investors to utilize their cryptocurrency wealth when applying for citizenship by investment. The key matter is proving source of funds. If a cryptocurrency investor has enough money in a bank account, then that is an easy solution. If not, weaker bank balances with additional documentation from companies such as Binance in the form of official statements can go a long way in proving source of funds. If the cryptocurrency is held in devices, comprehensive documentation of the asset through screenshots and official valuations can do the trick. Even in other, more intricate cases, NTL Trust do have a host of solutions that will allow cryptocurrency investors prove their source of wealth. NTL Trust has extensive experience in providing services to cryptocurrency investors that want to apply for citizenship by investment in the Caribbean, Vanuatu, Turkey, and more. The key is having an AML compliant framework that aligns with each program’s requirements, and you will find that at NTL Trust. To know more about citizenship by investment and cryptocurrency, contact us today to speak with an expert.

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