Token investors and ICOs are on the hunt for crypto-friendly jurisdictions. They’re asking: I don’t want my project assaulted by government regulation! Where should I incorporate?
To help investors seeking “shelter from regulatory uncertainty in United States and Asia,” some jurisdictions are adopting pro-cryptocurrency laws.
In the past, we’ve talked about Belarus, Vanuatu, and the Marshall Islands. In this post, we’ll take a quick look at how Malta and Bermuda are throwing their arms open to fintech and cryptocurrency investors and startups.
The Current State of the Cryptocurrency Union: Soon-to-Burst Bubble or Burgeoning Economy of the Future?
Analysts and investors are locked in disagreement. Some insist that digital currencies are an unsustainable blip, ripe with criminal potential, destined to walk side-by-side with Tulip Fever in history’s annals. Others are convinced that digital, decentralized monetary systems will create jobs — and those jobs will spawn tax revenue.
Which side is right? Time will reveal.
Offshore Cryptocurrency Havens: Malta
On July 4th, in the hopes of attracting fintech startups and crypto investors, Malta’s government passed three fintech-friendly bills. In short, the nation’s officials are sold on digital ledger technologies and crafted legislation that factored in:
- Consumer Protection;
- Industry Protection;
- Market Integrity; and
- Legal transparency.
Note that Malta’s tax system is already very business-friendly. Plus, the country is eager to grow its economy and giving ICOs “6 months to get in line with the bills,” which will “be extended to one year for crypto exchanges.”
As such, for blockchain, fintech, and cryptocurrency businesses and investors, Malta may be worth exploring in terms of incorporation and offshore cryptocurrency positioning possibilities.
Offshore Cryptocurrency Havens: Bermuda
In keeping with the region’s longstanding tradition of business-friendly banking regulations, several Caribbean nations are choosing to ride the fintech wave.
Take Bermuda. Recently, the island nation streamlined its regulations so that blockchain and cryptocurrency businesses can request and receive a speedy incorporation approval process. The premier, E. David Burt, enthused:
“We are 65,000 people, and 20 square miles, but we have a very advanced economy. We want to position Bermuda as the incubator for this industry.”
US Persons Still Need to Follow US Laws
Although incorporating offshore may limit jurisdictional exposure. However, if you’re targeting US investors, operating in the US, or even have US founders, you may still have to abide by stateside regulations.
Connect with an International Cryptocurrency Lawyer
Are you interested in exploring overseas cryptocurrency options for your business or individual wealth management purposes? If yes, give us a call. Our experienced, connected team of attorneys and consultants will review your situation, and provide positioning options that take into account every deduction, credit, gifting, offshore, and charitable possibility. With us, you’ll retain the maximum amount of assets while remaining compliant.
Let’s start the conversation. The first consultation is on us. Get in touch for a risk fee consultation.