As a fast-growing industry not even 13 years old, cryptocurrency has seen its fair share of regulatory action and change, especially in the United States. However, Jake Yocom-Piatt, co-founder of Decred, 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 went on:
“Cryptocurrency transactions are a form of speech, so states where freedom of expression is protected are the least likely to restrict cryptocurrencies. While the US is currently facing many substantial socio-political problems, the combination of its freedom of expression with protection against forced disclosure of passphrases makes it the most crypto-friendly country in the world. “
Since 2017, the crypto industry has faced a number of regulatory measures from US regulators, from lawsuits with initial coins at costs against companies such as BitMEX. The nation’s Department of Justice also recently closed its doors crypto regulatory parameters.
Earlier this year, the US representative Tom Emmer expressed concern about the US harming innovative progress amid its legal processes and requirements. Yocom-Piatt’s view of the US as the most crypto-friendly province, however, looks at the situation from a different angle, noting the country’s freedoms rather than its restrictions.
Meanwhile, Rob Viglione, Horizen co-founder and CEO, told Cointelegraph that he sees Puerto Rico as the best place for crypto, although he answered the question in light of the best crypto location for US individuals. “I am going to nominate a country that is not always recognized as a country and that is much 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 ordinances, such as Acts 20 or 22, that drive effective tax rates way down.”
The US Internal Revenue Service released guidelines on the taxation of digital assets for its citizens in 2019, though it raised further questions. There have been other updates as well, including changes to crypto tax return forms.
Another Complicated Part of the US Crypto Tax: Crypto is not considered property, so users must report each trade as a profit or loss, unlike similar exemptions. But tax aspects aside, Puerto Rico is home to a strong cryptocurrency scene, according to Viglione:
“Cutting 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’s leaders, entrepreneurs, and developers have chosen Puerto Rico as their new home. “
Kosala Hemachandra, founder and CEO of MyEtherWallet, too recently gave his opinion on what he sees as the best region for crypto. Hemachandra argued that people’s opinion of a good cryptosphere can be subjective. He also mentioned the importance of a global crypto presence.