Cryptocurrencies and Blockchain are the hottest technologies to come out of Silicon Valley. We’ve seen their effect on the world stage, particularly with the frenetic increase in the value of Bitcoin, which was the first cryptocurrency. But are you thinking about your ROI (return on investment)? Many people need to be aware of an option that can be very lucrative for someone looking for a haven by applying for second citizenship.
Digital currencies can exist independently of governments and central authorities because of their decentralized structure. They are often not issued by any central authority, which means they are theoretically resistant to government meddling or manipulation.
Cryptocurrencies are still relatively new in the international market, but more and more people are starting to invest in them. This is because of their portability, divisibility, accessibility, resilience to inflation, and transparency.
Cryptocurrencies are the future currency, and investing in these digital assets may be worthwhile sooner rather than later.
The loose rules and regulations and the affordable nature of many destinations make them attractive. Here are five reasons why crypto entrepreneurs should consider second citizenship.
Opportunity Cost
This first argument is primarily applicable to US citizens. However, this may also apply to people in other countries as governments worldwide increase enforcement and regulation of ICOs.
An ICO might be a source of funding for a fledgling company. ICOs can help firms dodge rules that prohibit them from obtaining direct financing from venture capitalists, angel investors, or banks. A second passport allows startup entrepreneurs to raise seed capital worldwide.
Many governments have prohibited ICOs due to fraud and high-risk scam schemes. As a result of such abuses, many respectable firms with outstanding ideas have been unable to acquire seed capital.
Countries have different approaches to how they regulate cryptocurrencies, tokens and ICOs. This can depend on the nature of the cryptocurrency itself.
Tax Exposure
There are no tax-free countries that give cryptocurrency investors citizenship through investment programmes. A passport or residency permit might help identify tax status.
Except in specific situations, all CBI countries exempt non-resident citizens from personal income taxes. If you want to put your cryptos on the exchange, convert them into other types of wealth, buy real estate, and assist other investments.
Uncertainty
There is a great deal of uncertainty, which is less based on the strength of cryptocurrencies and more dependent on governments dictating how you can spend your money. This is another reason it may be advantageous to relocate from your home nation to a country that is less obsessed with controlling your every financial move.
At the very least, you should have a backup plan, whether it’s a place where you have a residency permit or a second passport. If you have a backup plan, you can leave one country if they start making your life too harsh with heavy restrictions.
Whether you trade stocks or cryptocurrency, there is always the risk of being caught off guard by a volatile market crash or unexpected government-mandated tax rules. You can avoid currency loss by investing in second citizenship or permanent residency.
Favorable Transaction Costs and immediate payments
Direct payments facilitate cryptocurrency transactions, eliminating the need for third-party services (such as banks), saving you money, and minimizing transaction costs.
Cryptocurrency transactions are instantaneous, eliminating the need to visit a bank to clear funds because it may move monies directly to and from your digital wallet.
Broaden your horizon
Cryptocurrency is poised to become a dominant factor in how the world runs, particularly in business. Digital currencies improve many processes because they are more efficient, transparent, and accessible. And many countries are already embracing this change.
Suppose you own cryptocurrencies and want to learn more about the potential and benefits that come with them. In that case, investing in second citizenship or permanent residency in a country that has already embraced the notion may be in your best interest.
It’s easy to see why cryptocurrency is so prevalent in the digital age. Crypto investors are sprouting up all over the place, and more and more governments are beginning to recognize and welcome virtual currency as the new norm.
Suppose you’re considering buying a second passport or relocating to a country where digital assets are more accessible and accepted. In that case, iKonnect can help you find the best solutions for your situation. Suppose you’re considering buying a second passport or relocating to a country where digital assets are more accessible and accepted. In that case, iKonnect can help you find the best solutions for your situation.
Our professional consultants have countless years of experience addressing dual citizenship and migration-related matters. We aim to help you quickly navigate through the otherwise tricky citizenship process.
We can provide our clients with a seamless service both in their current location and the target country for residence or citizenship.
Obtain your second citizenship with just eight simple steps. Contact us for more details.
