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

2. 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. • Let’s 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 government’s 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.

3. 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!

4. 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

5. 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

6. Switzerland 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 country’s 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.

7. 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 C$180 in customer funds after its founder’s 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 world’s first Bitcoin ATM that was begun on 29, October 2003, in downtown Vancouver. This city is home to more than 631,000 citizens. Vancouver

8. 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 exchangesstartups. 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, Singapore’s 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

9. 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

10. 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

11. 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 government’s progressive approach to the Cryptocurrency issue. Thanks to AUSTRAC who announced a new set of Cryptocurrency exchange regulations in 2018. Australia

12. 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

13. 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 company’s 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

14. 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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