As a booming industry under 13, cryptocurrency has seen its fair share of crackdowns and regulatory changes, particularly in the United States. Jake Yocom-Piatt, co-founder of Decred, however, considers the nation to be the most crypto-friendly.
“Cryptocurrencies are treated as personal property in most jurisdictions, so their tax treatment is relatively uniform,” Yocom-Piatt said. 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 United States currently suffers from many significant socio-political issues, the combination of its free speech with protections against forced disclosure of passphrases makes it the most crypto-friendly country in the world.
Since 2017, the crypto industry has undergone a number of regulatory actions from US regulators, ranging from initial prosecutions for the coin offering to charges against companies such as BitMEX. The country’s Justice Department also recently released crypto regulatory parameters.
Earlier this year, U.S. Representative Tom Emmer expressed concern that the United States would hamper innovative progress in its legal processes and requirements. However, Yocom-Piatt’s take on the United States as the most cryptocurrency-friendly county looks at the situation from a different angle, noting the country’s freedoms rather than its restrictions.
Meanwhile, Rob Viglione, co-founder and CEO of Horizen, told TBEN that he considers Puerto Rico to be the number one place for crypto, although he answered the question in light of the best location. cryptographic for Americans. “I am going to nominate a country which is not always recognized as a country and which is well underestimated as a crypto hotspot: Puerto Rico!” He added:
“For Americans, Puerto Rico is by far the most crypto-friendly jurisdiction when you consider special tax decrees, like Laws 20 or 22, which lower effective tax rates.”
The U.S. Internal Revenue Service released guidance on taxing digital assets for its citizens in 2019, although this has raised other questions. Other updates have also taken place, including changes to crypto tax return forms.
Another complicated piece of US crypto taxation: Crypto is not considered property, so users must report every transaction as a gain or a loss, unlike exemptions of a similar nature. But tax aspects aside, Puerto Rico hosts 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 crypto community in the world because of it. Many industry leaders, entrepreneurs and developers have chosen Puerto Rico as their new home. “
Kosala Hemachandra, Founder and CEO of MyEtherWallet, also recently gave his take on what he considers the best region for crypto. Hemachandra postulated that people’s opinions on a good crypto atmosphere can be subjective. He also mentioned the importance of a global crypto presence.