Crypto-currency is clearly a revolutionary concept that is becoming increasingly popular. It is now an eyebrow-raising $3 trillion dollar industry. Many cryptocurrency investors (referred to as “CIs”) have made significant income streams that have and continue to change lives. With increasing popularity and attention, comes whispers and then roars of tax enforcement and regulation of the crypto market place. It is prudent to consider your options as an investor to save money and help safeguard your profits.
- US Citizenship may negatively affect your participation in Crypto opportunities.
- Initial Coin Offerings may use cryptocurrencies to raise capital and holding US citizenship may complicate an opportunity to invest. Based on the recent session held by the House Committee on Financial Services, titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States” it is clear that regulation, while several years away, is certain to come. The cryptocurrency CEOs did indicate that overly tough regulations would push assets overseas. See an article about this here: https://www.aljazeera.com/economy/2021/12/8/crypto-ceos-ask-us-congress-for-clearer-rules-for-3t-industry
- Having US Citizenship will subject you to regulations wherever you are and you would likely still be required to report your earnings. ICOs, typically, do not accept US citizens because of this and have reasonable tax compliance concerns. Unfortunately, as we will discuss it may be better if you renounce US citizenship and go to a tax atmosphere that is better for you.
- Rapidly Changing Market
- Regulations, market developments and banking systems all create a sense of excitement in the crypto-sphere but they also create low and consistent fear regarding what will happen. Congress may decide to regulate next year or at a schedule that is undesirable to your crypto-gains. Other nations may follow suit and impact the rules affecting how to you take money out of your crypto wallet.
- Choosing which government to subscribe to as a citizen and subsequently, the rules that govern you is extremely important. There are several countries that I intend to discuss in my next articles who are less fixated with controlling your every financial move and give you the freedom onto more of your earnings. Regardless of where you go, there will be increasing regulatory measures if you wish to translate your cryptocurrencies into the real world. It is wise to pause an consider setting up a proper offshore strategy first.
- Visa-free easier travel
- Depending on your passport, individuals with second passports can get visa free or even visa on arrival access to multiple countries.
- Business Opportunities
- Citizenship by investment gives access to another nationality by making an investment in that country. There are many citizens by investment passport holders who end up encountering other business opportunities. A second passport is a good option for individuals interested in expanding their business opportunities.
Ultimately, cryptocurrencies will become regulated but there are many countries who are interested and have historically welcomed investors and their considerable wealth to their shores. It may be a wise and profitable decision to consider your options.
