Know About the Best Regions for Legal Crypto Business - Espay Exchange

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(No Transcript)
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Introduction

• Well, we have already discussed legal crypto
  compliance and taxation outlook in our previous
  articles. In this article, to conclude, we will
  be discussing the best regions for legal crypto
  business across the globe.
• Lets get started! Establishing a business in the
  best countries that can welcome it with open arms
  can be overwhelming. Especially, when you are
  talking about setting up centralized crypto
  exchanges or white label Cryptocurrency exchange
  platform, it is important to place the best
  region. Since the governments around the world
  are now aware of cryptocurrencies, their legal
  compliance and taxation guidelines, you have to
  think twice before launching any crypto startup.
  The government can either crackdown on your
  company or allow it to flourish in the crypto
  ecosystem approved by the governments laws. 
• However, there are some jurisdictions that
  emerged as being a lot better than others for
  individuals who want to launch a crypto startup. 
• In countries like India or China, you would find
  yourself stuck in a situation if you are dealing
  with Cryptocurrency. Reason In India, Reverse
  Bank announced in 2018, it would not provide
  services to any individual who is in the business
  of cryptocurrencies. In China, all domestic
  authorities banned ICOs and local crypto
  exchanges in September 2017.

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Introduction

• Therefore, if you are planning to launch a crypto
  startup, it is important for you to study the
  regulatory framework as well as the government
  policy in a number of jurisdictions. You should
  also know about the current taxation outlook, a
  number of fintech companies that would support
  your business in the region you are considering
  to set up a business. In this article, we will be
  sharing some of the best regions that are worthy
  of consideration before you settle your crypto
  startup. Please take a look!

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USA

• Undoubtedly, the USA is counted amongst the
  hotbeds for crypto companies. In this country,
  you can find renowned and successful crypto
  exchanges, wallet developers, and crypto miners.
  The government of the USA has enacted
  straight-forward legal compliance for crypto
  businesses or companies. However, crypto
  regulations and policies vary from state to state
  and a few taxation guidelines are being unclear
  in the USA.
• In 2019, lawmakers filed a bill to generate tax
  exemption for specific Cryptocurrency
  transactions. All-in-all, the crypto community in
  this country is still booming and the technology
  is managing to enter the mainstream. For
  instance, in 2018, Ohio allowed companies to pay
  a variety of tax with bitcoin, including tobacco
  sales tax and employee withholding tax.

USA
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Japan

• Invariably, Japan is being able to have some
  amazingly progressive Cryptocurrency regulations
  across the world. Consequently, around 10 of the
  total worldwide traffic to Cryptocurrency
  exchanges comes from Japan. Amazed?
• In 2017, Japan has recognized crypto assets as a
  legal tender and launched straight-forward tax
  guidelines for aspired investors. This was the
  big deal since launching detailed guidance by the
  national tax authority of any region on virtual
  assets has been a noteworthy concern for
  businesses as well as individuals.
• The crypto industry in Japan has also been given
  the leverage to self-govern in a way that is
  adaptive and accommodating. The Japanese Virtual
  Currency Exchange Association includes more than
  twenty organizations having collective authority
  to enforce and pass regulations for crypto
  exchanges in Japan.

Japan
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Switzerland

• Switzerland is also counted amongst the best
  nations that have been in favor of the
  Cryptocurrency business. In this region, many
  crypto startups have been encouraged to get
  settled there and in 2019, Switzerland declared a
  new legislative approach to Blockchain.
• Generally, Switzerland managed to provide a
  low-tax ecosystem for businesses and bitcoin
  startups that are already based in Switzerland.
  Tax regulators of this country consider
  cryptocurrencies to be assets, subject to wealth
  taxes that should be announced in annual returns.
• Zug is a canton in Switzerland, popular by the
  name of Crypto Valley after it issued various
  progressive laws regulating the usage of
  Cryptocurrency and related businesses.
• According to a report in 2018, it was declared
  that the top 50 blockchain and cryptocurrencies
  based companies in this countrys Crypto Valley
  alone to be worth 44 billion. The state railway
  even accepts BTC for payments of tickets. Swiss
  Banks like Julius Baer also permit direct
  transfer and deposits of select cryptocurrencies.

Switzerland
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Vancouver

• In Canada, Bitcoin has a solid community. Canada
  has also taken some serious regulatory steps to
  embrace the virtual currency. Vancouver is home
  to QuadrigaCX a defunct crypto exchange that
  lost C180 in customer funds after its founders
  alleged death.
• More than 2 dozens merchants in this region can
  accept bitcoin. Residents of Vancouver can
  purchase Bitcoin at nearly 40 ATMs. Waves Coffee
  House is the worlds first Bitcoin ATM that was
  begun on 29, October 2003, in downtown Vancouver.
  This city is home to more than 631,000 citizens.

Vancouver
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Singapore

• Tech-savvy Singapore also counted in the best
  countries to support Cryptocurrency businesses.
  This region is just another jurisdiction that is
  worth considering if you are planning to
  launch centralized crypto exchanges startups.
  Before 2019, the regulatory framework for
  Cryptocurrency was not that clear and some
  businesses were not able to expand due to
  multiple issues with their bank accounts.
  Currently, Singapores financial regulator is
  open to crypto companies that are working with
  banks to reach an agreement to permit businesses
  to expand. In 2018, the Central bank of Singapore
  had finalized a new regulatory framework for
  payment-related services, which currently include
  Cryptocurrency.
• Singapore is a huge tech and business community
  that is ideal for several investors and aspired
  crypto startups.

Singapore
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Malta

• Malta is a small European Island Nation whose
  parliament has taken an unquestionably
  pro-Bitcoin stance, with the Prime Minister
  calling crypto the inevitable future of money.
  Parliament of this region passed 3 bills offering
  a framework for Blockchain technology in July
  2018.

Malta
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Luxembourg

• When it comes to tax advantages, Luxembourg,
  being a small landlocked European region with
  around 600,000 residents is a considerable
  contender. The CSSF (Commission de Surveillance
  du Secteur Financier was one of the first
  financial regulators in the European Union to
  offer commentary on cryptocurrencies with its
  Bitcoin Communique 2014.
• In this European nation, cryptocurrencies are
  considered as intangible assets which mean they
  are not subject to income tax until they are
  disposed of. Moreover, all Cryptocurrency-related
  transactions are exempt from VAT.
• This country is also quite a good region to
  attract the talent for Crypto companies, with the
  innovative University of Luxembourg which is now
  dealing in exchanging the securities of
  Cryptocurrency assets.
• Tokyo-based Bitflyer was granted with a Payment
  Institution License to function in the EU. So,
  this Bitflyer has many offices in the European
  country.

Luxembourg
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Australia

• Cryptocurrencies in Australia are legal and
  treated as property. Crypto exchanges are also
  legal in Australia. If you are willing to open an
  exchange, you must register with AUSTRAC
  (Australian Transaction Reports and Analysis
  Centre). Crypto regulations demand exchanges
  functioning in the country to register with
  AUSTRAC, identify the users, verify them,
  maintain records, and comply with AML/CFT
  reporting obligations of the Government. However,
  exchanges that are unregistered will be subject
  to criminal charges as well as financial
  penalties.
• Previously, cryptocurrencies had been subject to
  controversial double taxation under the goods and
  services tax of Australia. The improvement in tax
  treatment is indicative of the governments
  progressive approach to the Cryptocurrency issue.
  Thanks to AUSTRAC who announced a new set of
  Cryptocurrency exchange regulations in 2018.

Australia
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Cayman Islands

• If you are a crypto entrepreneur, the Cayman
  Islands is one of the perfect jurisdictions to be
  considered. In the Cayman Islands, not just will
  you almost everything your company needs to grow,
  but with no tax policy, it will be possible for
  you to reinvest far more in developing your
  crypto project.
• And even if you will want to sell your crypto
  business, you will be able to make your easy exit
  without having to worry about paying a single
  penny in capital gains tax. As a result, you will
  end up saving millions in your pocket.
• Moving your exchange to the Cayman Islands begins
  by talking to a bunch of lawyers and tax advisors
  to ensure that it is suitably a good choice. For
  businesses especially working on Blockchain
  technology, it is an apt environment that enables
  a company to evolve and brings innovative ideas
  to fruition.
• Choosing the Cayman Islands for setting up your
  crypto business will help you bring in your team
  from anywhere across the globe.  Therefore, this
  place will provide you with three things less
  hassle, more money, and white sand beaches.
  Undoubtedly, the Cayman Islands is one of the
  best crypto hubs nowadays.

Cayman
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Estonia

• According to research, Estonia had managed to
  house around 700 foreign businesses working on
  cryptocurrencies and Blockchain in April 2019.
  This progressive outcome is mostly due to the
  forward-thinking policies launched in Estonia. If
  you are planning to establish a crypto business
  in Estonia, then you can easily get a crypto
  license. Two types of licenses can be acquired in
  Estonia. Each of them is followed by a simple
  process that can take up to 30 days. Moreover,
  the entire process demands minimal involvement.
  You will need some basic documents to get your
  background checked.
• In Estonia, your company can be easily managed by
  one person remotely. You will not need to set up
  a local office in Estonia or to create a specific
  number of jobs within Estonia.
• This country promotes the development of small
  businesses by enabling them to reinvest their
  profits. Or in other words, you can function
  tax-free if you do not distribute profits to
  yourself. If you do, then they will be taxed at
  the standard prices.
• If your company is registered in this country and
  any of its profits are distributed to the
  companys owner, it is subject to Estonian
  corporate income tax. If your owner is a resident
  of some other country, then all income, as well
  as dividends from the company, will be taxed
  there additionally. According to a legal update
  of 2019, the Estonian government has empowered
  the Financial Intelligence Unit to personally
  interview those persons who are seeking a crypto
  license.

Estonia
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Final Thoughts

• Now that we have shared some of the best
  countries that encourage the use of
  cryptocurrencies and the launch of crypto
  exchange startups, you can get yourself prepared
  for the future. Other regions that are also worth
  considering include Mauritius, Gibraltar, and
  Bermuda. All of these countries are adopting a
  positive stance towards cryptocurrencies since
  their governments and regulators have recognized
  the hidden potential to renovate legacy financial
  systems in these countries. If you are struggling
  to launch your crypto startup, have some faith in
  such countries that are mentioned above.

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