Citizenship for crypto
Nowadays, the crypto investors are becoming increasingly difficult to maintain and increase their fortunes seeing how the cryptocurrency is taking an increasingly prominent place in the world financial system.
The actual citizenship for money (including digital) can be issued only in a limited number of countries. In fact, there is a little more than a dozen. Moreover, the opportunity to obtain citizenship for Bitcoins is still available only in one state – legitimately and quickly – Vanuatu.
Over the past years, it has been possible to observe many changes in the offshore, banking, investment, and tax spheres. These changes began to occur especially often with the acceleration of the transition to the era of the digital economy, and also against the background of active Internetization and globalization. Each next change brings with it specific opportunities and challenges. Also, as practice shows, only those who are ready to adapt to these changes thrive.
This axiom is still relevant, including for the crypto-currency industry. More recently, crypto-currency investors began to face a growing “snowball” of changes. Governments are stepping up the onslaught through tax instruments and are trying to regulate the ever-increasing crypto-currency market. In response to these events, prudent investors began to explore the possibilities of tax and offshore planning available to them to adapt to the changes.
Cryptocurrencies are still an exciting component of wealth planning tools for any successful person. In this case, cryptocurrency investors, no doubt, must protect their assets with advanced tax, offshore and other strategies.
Those who conscientiously seek to adapt to changing realities and norms should take a small part of their cryptocurrency wealth and invest in alternative residences and passports to ensure long-term prosperity for themselves and their loved ones by protecting their crypto savings.
As noted above, you can get the same additional passport for Bitcoins. This procedure is legal and debugged. The first cases are already positive.
Why invest in alternative residence permits / PZHM / citizenships? Here are five main reasons why each serious crypto-currency investor needs an additional residence and/or a new passport – preferably in an offshore and/or low-tax jurisdiction.
The direct approach
In April 2018, the Hungarian company Ajax Software LLC presented the world a new cryptocurrency – Citizenshipcoin. It is designed specifically for the investment immigration industry (CBI / RBI / EB5 programs) and is the first of its kind in the market. According to the developers, the use of the new digital currency will allow investors to instantly settle for participation in passport programs anywhere in the world.
To date, digital currencies are not used in the field of investment immigration due to anonymity. According to the idea of the authors, it is Citizenscoin (CTZ) that can, in the long run, occupy a free niche. The creators assure that using the new cryptocurrency will allow conducting financial transactions without intermediaries in the form of banks.
It is expected that payments will be faster, cheaper and more efficient. Developers predict that in the foreseeable future, consulting companies, citizenship specialists, development, and legal companies, as well as authorities of countries that have the opportunity to obtain a passport for investment, may prefer this cryptocurrency as the primary settlement instrument.
However, given the fact that the level of mistrust of digital currencies is growing, and more fake projects are appearing on the network, it is easy to assume that CTZ authors are facing many difficulties in the way of promoting their coins. Those wishing to issue the second citizenship are required to prove the legality of the funds they use for the investment. If we talk about Bitcoins, then it’s difficult to do. Moreover, the government is involved in the financial operation, which currently relies only on banks that are guarantors of the legality of the process.
The introduction of a new instrument for settlements cannot yet be interpreted as something revolutionary in the industry. It is essential to understand and take into account the specifics of the market. In the Caribbean, the introduction of any innovations drags on for years, Europe is also not ready for such radical innovations.
In October 2017, the readiness to sell passports for Bitcoins was announced in the Republic of Vanuatu. This information edition of The Vanuatu Independent was reported by Jeffrey Bond, the head of the Vanuatu Information Center. Relevant information had appeared in many world media.
A week later, the information was disproved. Samuel Garay, acting Secretary General of the Office of Citizenship of Vanuatu, said that payments are still made exclusively in US dollars.
The current situation was interpreted by many as a profitable marketing move aimed at increasing investor interest in the passport program of the Pacific state. Also, this gave its results: among crypto assets owners, the demand for second passports is growing.
Meanwhile, on April 27, 2018, James Harris, VIC Managing Director, informed the Investment Migration Insider that Vanuatu had established a system for accepting Bitcoins as payment for a Caribbean passport. He said that several applications for issuing second citizenship for Bitcoins had already been successfully processed in his department.
According to James Harris, a particular system timeframe has been developed. The foreign investor and the Vanuatu authorities are contacted in real time. The applicant is informed of the cost of the passport in digital currency and gives two hours for the transfer of funds to the specified wallet. The procedure for conversion into US dollars is made after the successful completion of the transaction.
The Carribean factor
The fact that the idea of using cryptocurrency to pay for a second passport is not new, according to information messages from other countries. In 2014, the authorities of Saint Kitts and Nevis were ready to accept digital money from the participants of the passport program. Soon the website of the Government of the Caribbean country published a refutation of this information.
The prerequisite for the release of relevant information was a series of events. In 2014, Arthur Porter was detained for holding illegal financial transactions in Canada, who at the time of his arrest stated that he was a citizen of St. Kitts and presented a Caribbean passport. Shortly after that, the US Treasury Intelligence Department issued a statement that persons who had registered the economic citizenship of St. Kitts were carrying out illegal financial transactions. Quite often, fake pages with the proposal to issue citizenship of Saint Kitts and Nevis in exchange for Bitcoins appear over time.
At the same time, the authorities of Antigua and Barbuda are working to legalize operations with the cryptocurrency within the jurisdiction. Stedra Benjamin, the country’s attorney general, is working on a bill that would allow the digital currency to be paid for a second passport.
In particular, in May 2018 the possible introduction of a new option to participate in the passport program on Antigua was reported on. Investors will be offered to invest $ 150,000 in the construction of a new university in Antigua. According to the information provided on the Coingeek website, program participants who choose this option will be able to pay for the passport in Bitcoin Cash (BCH).
On the official website of Antigua and Barbuda, there is no confirmation of this information. Representatives of local media expressed concern that the cryptocurrency, which was put into operation only in August 2017, was able to win such support from the authorities and expressed doubts about the possible implementation of this scheme.
The second passport and the change of tax residency – the ability to freely dispose of its crypto-currency asset
The issue of citizenship in exchange for a cryptocurrency is relevant for residents of countries in which strict currency restrictions apply.
Conducting an illegal currency transaction fraught with the imposition of an administrative fine, the amount of which can reach 100% of its amount.
For example, earlier you bought bitcoins for an impressive amount, and now you transfer profits from their sale to an account opened in a foreign bank. In this case, the fine can be imposed not only on the income received but also on the entire crypto-currency asset.
Registration of the second citizenship and change of the tax residence permit to carry out tax planning, personally manage the available assets and significantly save on paying taxes on income derived from the implementation of the cryptocurrency.
Is it now possible to buy citizenship for bitcoins or other cryptocurrencies?
To explain why on Antigua reported on Antigua reported on Bitcoins and other types of digital currency do not use investment immigration in the industry is not difficult. Some leading states have banned transactions using cryptocurrency because digital money can be used in illegal schemes and for money laundering – the thing we have outlined several times in our articles. Stay tuned.