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Being an expanding industry under 13, cryptocurrency has seen its fair share of crackdowns and regulatory changes, especially in the United States. Jake Yocom-Piatt, co-founder of Decred, however, sees the nation as the most crypto-friendly.
“Cryptocurrencies are treated as personal property in most jurisdictions, so their tax treatment is relatively uniform,” said Yocom-Piatt. He continued:
“Cryptocurrency transactions are a form of speech, so states where free speech is protected are the least likely to restrict cryptocurrencies. While the US currently suffers from many substantial socio-political problems, the combination of their free speech with protections against forced disclosure of passphrases it makes it the most encrypted country in the world. “
Since 2017, the cryptocurrency industry has undergone a series of regulatory actions by US regulators, from initial lawsuits for offering coins to accusations against companies like BitMEX. The nation’s Justice Department also recently issued cryptocurrency regulatory benchmarks.
Earlier this year, US Representative Tom Emmer expressed concern that the US is harming the innovative advancement among its legal processes and requirements. Yocom-Piatt’s view of the United States as the most crypto-friendly county, however, looks at the situation from a different perspective, noting the country’s freedoms rather than its restrictions.
Meanwhile, Rob Viglione, co-founder and CEO of Horizen, told Cointelegraph that he sees Puerto Rico as the number one spot for cryptocurrencies, although he answered the question in light of the best crypto position for Americans. “I will name a country that is not always recognized as a country and is highly underrated as a crypto hotspot: Puerto Rico!” He added:
“For Americans, Puerto Rico is by far the most encrypted jurisdiction when you consider special tax decrees, such as Acts 20 or 22, which reduce effective tax rates.”
The U.S. Internal Revenue Service released guidelines on digital asset taxation for its citizens in 2019, although it raised further questions. Other updates have also occurred, including changes to the cryptographic tax declaration forms.
Another complicated component of US crypto taxation: Crypto is not seen as ownership, so users must report each trade as a gain or a loss, contrary to similar exemptions. But tax aspects aside, Puerto Rico is home to a strong cryptocurrency scene, according to Viglione:
“Saving on taxes is great, but what really sets Puerto Rico apart is the explosion of the most vibrant cryptocurrency community in the world because of it. Many of the industry’s leaders, entrepreneurs and developers have chosen Puerto Rico as their new home. “
Kosala Hemachandra, founder and CEO of MyEtherWallet, also recently expressed his opinion on what he considers the best region for cryptocurrencies. Hemachandra speculated that people’s views on a good crypto atmosphere may be subjective. He also mentioned the importance of a global crypto presence.
