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

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

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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 government’s laws.  – PowerPoint PPT presentation

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Title: 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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