When you're a serious investor,
you're literally programmed to think in the future.
Predicting what is going to happen next is how you put your food on the table.
The main issue for crypto investors in America is that the future of the industry
has never been as uncertain as it is right now.
In a doomsday scenario
where Gary Gensler and Elizabeth Warren get exactly what they want,
what are you going to do?
Trade stocks?
I know exactly what I'm going to do.
And I'm going to be leaving.
And this might be where I'm going to go.
Pack your bags.
Let's get it!
Welcome to BitBoy Crypto!
My name is Ben.
In this video, we're going to talk about the most crypto-friendly countries in the world
and where I might go in the case of a crypto apocalypse in America.
Alright. Let's get into the video.
All the sources, by the way, will be in the description down below.
It's no secret that when it comes to crypto here in America,
tensions are high, people are scared,
and many people are wondering what they should do
if regulators push crypto innovation outside of our borders.
Unfortunately for us,
the battle for crypto regulation has never been as volatile as it is today.
We've just witnessed the next phase of Operation Choke Point 2.0 commence
as the SEC has gone after Binance and Coinbase.
With these new "regulation by enforcement" type cases,
the SEC is also trying to call as many altcoin securities as they possibly can.
It's egregious.
As crypto projects and exchanges plead with politicians
for clear and transparent rules for the crypto space,
according to Gary Gensler, there's been clarity for years.
Look. I think there's been clarity for years.
While I remain optimistic that dirty Gary's dictatorship will come to an end,
hopefully this year,
we still have to prepare for the worst.
And by that, I mean you might have to leave the country.
This isn't as simple as going on vacation for a few weeks.
This is a massive life-altering decision.
So we have to take it very seriously.
With that being said,
we have to consider the pros and cons,
what the tax situation is,
what's the cost of living,
what's the crime rate,
stuff like that.
Obviously, there are other countries with favorable tax situations
that didn't make the list.
But if it didn't make the list, there's probably a reason why.
We're going to begin by talking about a few countries before I give my top picks.
And with these countries, I will include why I likely won't end up there.
These countries include Malta, Germany, Malaysia, Switzerland and the Netherlands.
These countries have initiatives that welcome and encourage crypto and crypto regulation.
They're not villainizing it like they are here in the United States.
And the rules are better there than here.
But broadly speaking, there's a major factor holding all of these countries back.
The factor is day trading.
Don't get me wrong.
If you're a HODL type of investor,
you may want to consider some of those countries.
If you're an active day trader like myself, these countries probably aren't for you.
Countries like Germany and Malta, if you hold your bags for at least a year,
then you won't have to pay a penny in capital gains when you finally sell.
This is very bullish.
But in the same breath,
if you hold for less than a year, you'll be taxed.
Also, in Germany,
if you hold for less than a year and your profit per trade is less than 600 euros,
then you would be exempt.
But you know me.
I'm not moving to Germany over $600 when I could be doing 32X longs.
Let's keep it rolling.
Countries like Singapore and Switzerland are often popular tax havens for crypto investors.
They're both very wealthy countries.
They have lenient rules and both have regulation that encourages crypto.
First, let's look at Switzerland,
which is one of the OGs in the crypto space.
Back in 2018, Swiss banks were the first to allow crypto companies to open up shop.
Switzerland is also home to Zug, also known as Crypto Valley,
where countless startups in crypto found their footing
Ethereum and Cardano, just to name a few.
Here's the thing though.
Each region, also known as a canton, has different rules and regulation in crypto.
But most of them are very friendly,
especially when you compare them to United States.
The drawback here is the difference between what they define as private and professional investors.
Private investors do not pay capital gains, but professional investors do.
The difference is based off volume and frequency.
Since my volume and frequency would make me a professional investor,
I would still have to pay 35% on my profits on what they call taxable dividends.
Sorry, Switzerland. I'm out.
Unfortunately, the situation is similar for Singapore.
Although Singapore treats crypto as a barter system and not as a form of payment
and they also offer 0% capital gains tax,
they have the same drawback.
Day trading.
If you're a day trader,
you would have to claim your profits as income and pay somewhere between 15% and 22%.
All in all, Switzerland and Singapore aren't the worst choices in the world,
but, also, keep in mind,
they're ranked 2nd and 7th in the cost of living index as well.
You need to have a lot of money to live comfortably there.
For reference, the US ranks 16th.
And make sure to rank this video No. 1 by smashing the like button
and subscribing to the channel to get more crypto news and education.
No discussion about large sums of money is complete
without talking about the Caribbean.
And the top places on my list for crypto-friendly countries are Bermuda and the Cayman Islands
for their own reasons.
Let me break it down.
Bermuda
It's a taxing crypto company haven.
They have some of the best legal frameworks for setting up a crypto company in the world.
It's also a plus that individuals in the country do not pay personal income tax.
There's also no tax on buying or selling or holding crypto, same for payments.
It's legalized and not subject to any tax.
Bermuda was one of the first governments to allow stablecoins for tax payments.
Bermuda is such a hotbed for crypto that even Coinbase set up shop there earlier this year.
Cayman Islands have been popular for large corporations
and high net worth individuals for decades.
And most of that is due to the fact that they have zero capital gains,
income, property, payroll, withholding or sales taxes.
Just the way it should be.
Setting up a business on the Cayman costs as little as $3,000
with a yearly renewal of $6,000.
And setting up a business is the way to go
since residency is hard to come by and can cost over $100,000.
In some cases, a million dollars for the privilege.
These island paradises are fantastic but have one big drawback.
Bermuda and Cayman are ranked No. 1 and No. 3 for cost of living.
Yikes!
An honorable mention, of course, here is El Salvador
and its Bitcoin maxi, totally not a dictator, president Nayib Bukele.
They're going to build a Bitcoin City,
which can be powered by a couple of volcanoes,
and a Bitcoin Beach,
where you can buy fruity drinks with Satoshis.
President Bukele is all about breaking the wheel
and has made lots of progress in making El Salvador independent
from the banking vultures that prowl Central America.
On May 4, 2023,
President Bukele signed into law the complete removal of business taxes
from tech businesses.
That's a major play for one of the biggest ways to drive economic growth.
In addition to government bonds backed by Bitcoin and zero capital gains taxes on Bitcoin,
El Salvador is great if you're a Bitcoin maxi.
But if you have a bag of ADA or Ethereum, you aren't going to have a great time.
Next are my top two choices for where I would move in a crypto apocalypse.
First, Puerto Rico,
a US territory that has unique tax privileges.
In the US, we pay up to 37% on capital gains depending on the tax bracket.
But in Puerto Rico, if certain qualifications are met,
the number is dropped to zero.
Act 22 allows US citizens to be exempt from capital gains,
as well as income tax.
Also, you'd only have to pay a 4% corporate tax.
And while the crime rate in Puerto Rico is much higher than the US,
the cost of living is a lot cheaper.
The upside of Puerto Rico is that you don't have to mess around with visas
or other passports since it's part of the US.
The one catch is that you only have to be physically present in Puerto Rico,
183 days out of the year to be considered a resident.
But at the top of my list of crypto-friendly countries,
it has to be the United Arab Emirates, or the UAE, and, of course, its crown jewel Dubai.
UAE knows that digital assets are the future
and is taking huge steps in making Dubai a hub of crypto influence and innovation.
For evidence of that,
look no further than the first crypto regulation body of its kind VARA.
V-A-R-A
This kind of legal clarity and proactive governance is exactly what makes crypto flourish in Dubai.
On top of the responsible leadership,
there's no income tax,
no capital gains tax,
no corporate tax,
and only a 5% value added tax, or a VAT, for goods and services.
Compared to Puerto Rico or the US, crime is much lower in Dubai.
And, on top of that, cost of living is lower than the US, so your gains go further.
Look. I definitely don't want to leave my own country,
but if the trend of oppressive and irresponsible monetary policy continues,
those of us in crypto who value freedom are going to have to explore
all the options we have to make our family's lives better.
That's all I got.
Be blessed.
BitBoy out.