As a thriving industry under 13 Cryptocurrencies have seen their fair share of raids and regulatory changes, especially in the US. Jake Yocom-Piatt, co-founder of Decred, views the nation as the most crypto-friendly.
“Cryptocurrencies are treated as personal property in most countries, so their tax treatment is relatively uniform.” Yocom-Piatt said. Continuously:
“Cryptocurrency transactions are a form of expression. Hence, the states in which freedom of expression is protected are the ones that least restrict cryptocurrencies. Although the United States is currently suffering from many significant sociopolitical issues, it is the most crypto-friendly country in the world due to the combination of its freedom of expression with protection from the forced disclosure of passphrases. “
Since 2017, the cryptocurrency industry has seen a range of regulatory actions from U.S. regulators, from lawsuits to initial coin offerings to charges against companies like BitMEX.. The country’s Justice Department also recently set regulatory parameters for cryptocurrencies.
Earlier this year, Tom Emmer, United States officials expressed fear of the country hinders the progress of innovation amidst its legal processes and requirements. Yocom-Piatt’s view of the US as the most crypto-friendly country, however, looks at the situation from a different angle, highlighting the country’s freedoms rather than its limitations.
Meanwhile, Rob Viglione, co-founder and CEO of Horizen, told Cointelegraph that he considers Puerto Rico to be the best place to go for cryptocurrencies, although he answered the question in the light of the best cryptocurrency location for US citizens: “I will nominate a country that is not always recognized as a country and that is greatly underestimated as a cryptocurrency hotspot: Port! Reich!” Added:
“For Americans, Puerto Rico is by far the most crypto-friendly jurisdiction when it comes to specific tax regulations like Law 20 or 22 that cause effective tax rates to drop sharply.”
The US Internal Revenue Service published a guide to taxing digital assets for its citizens in 2019although it only raises more questions. Other updates have also been made, including changes to tax return forms for cryptocurrencies.
Another difficult component of US cryptocurrency taxes: Cryptocurrencies are not considered property, so contrary to similar exceptions, users must report every trade as a profit or loss. Tax issues aside, Puerto Rico is home to a strong cryptocurrency scene, according to Viglione:
“Saving taxes is great, but what really sets Puerto Rico apart is the explosion of the world’s most vibrant crypto community. Many of the industry leaders, entrepreneurs and developers have chosen Puerto Rico as their new home. “
Kosala Hemachandra, Founder and CEO of MyEtherWallet, also recently commented on what he thinks is the best region for cryptocurrencies. Hemachandra highlighted that people’s opinion of a good cryptocurrency atmosphere can be subjective. He also mentioned the importance of the global presence of cryptocurrencies..