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Mobility Standard #5 – Citizens of Bitcoin, Ancestry-Based Citizenship, and Sovereign Individuals

Our guest this week is Yuri Lau, a Dutch national who has been living in Argentina for the last 16 years and who is now working on investment migration solutions tailored for crypto-investors through the company he co-founded; Citizens of Bitcoin.

We spoke to Yuri about Citizens of Bitcoin and how he aims to tailor mobility packages specifically suited to crypto-investors. We also discussed how the increasingly large share of global assets that are non-tangible and geographically non-fixed opens up opportunities for sovereign individuals to bargain with states and to make countries compete for them.

Ahmad Abbas brought up a potential new incentive scheme for high-performing employees of multinationals: Company sponsorship of CBI applications through the bond investment options of the Caribbean. We explored the feasibility of such solutions and how they would work in practice.

Citizenship by descent solutions is becoming an increasingly recognized – and utilized – avenue to enhanced freedom of travel and settlement. We ask: Why is that market only now getting so much attention and does it represent a threat or an opportunity to investment migration?

Finally, Rogelio suggests DNA test-kit companies, like 23andMe, should become RCBI-introducers by informing their users, whenever European ancestry is discovered during analysis, that they may qualify for citizenship in the EU.

All of that, and a great deal more, in today’s episode of the Mobility Standard.

Timestamps
  • 06:30 – Citizens of Bitcoin
  • 08:10 – The virtualization of assets and how it enables sovereign individuals
  • 13:00 – The complementarities of monetary and physical mobility
  • 14:20 – Competition between states for the best citizens and free individuals bargaining with states
  • 19:00 – Citizenship as employee performance bonus: Companies sponsoring CBI applications through the bond route
  • 26:05 – Tailoring investment migration to crypto-investors; What are their pain points?
  • 29:00 – Citizenship by descent/ancestry: Why is this market only now growing quickly and is it a threat or an opportunity for the investment migration industry?
  • 37:45 – Rogelio gives away his best business ideas for free.

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How We Help The Savvy Crypto Investor Set Up Shop in St. Kitts & Nevis

NTL Trust
Sponsor


Crypto investors have already set upon the path of financial freedom by adopting cryptocurrency and are now looking for solutions to enhance that sphere of liberty. It is no wonder, then, that many of them are drawn to the Caribbean nation of St. Kitts & Nevis. While the pristine beaches, world-class cuisine, and uniquely relaxed lifestyle are significant attractions of the twin-island nation, it is the unparalleled financial freedom the country affords its nationals that plays the most prominent part in attracting the global elite. In this article, we will discuss some of the lesser-known financial gems that await crypto investors in St. Kitts & Nevis.

In this article, we will also cover the basics about St. Kitts & Nevis, the laws and regulations that make the country such a popular destination for investors, why it is one of the world’s leading crypto-friendly nations, an overview of the banking system in the nation, and how you can set up shop in the Caribbean country. 

File:Saint Kitts and Nevis panorama.jpg - Wikimedia Commons
All investors need to know about St. Kitts & Nevis

While a small nation by size and population, the reputation of St. Kitts & Nevis is growing among the world’s elite. The nation’s twin islands of Kitts and Nevis form the landmass of the federation, each having its distinct characteristics, connected by ferries and water taxis, and more importantly, the natural beauty of the Caribbean. So let’s get to know each of these isles a bit more before we dive deeper into the financial technicalities.

St. Kitts, also dubbed St. Christopher, is the larger, more densely populated island. A flurry of Bitcoin investors relocated to St. Kitts approximately five years ago, enticed by the highly illustrious St. Kitts & Nevis citizenship by investment program (CIP). An informal passports for Bitcoin community began to emerge as Bitcoin ATMs began appearing around the island. 

The island remains a popular tourist destination and is home to a plethora of five-star luxury resorts and spas. It also houses several offshore medical and veterinary schools, making it a great place for crypto investors to lay back and enjoy the sun while ensuring the island has a great setup for their future generations.

Nevis, St. Kitts’s little sister, is the smaller of the islands, and its population is about 20% of its older sibling’s. It is a faultless island hideaway where people can unwind and soak in some of the most remarkable natural sceneries the world has to offer. A multitude of celebrities, including British nobility, tend to spend their free time on the island due to its seclusion and serenity.

Nevis’ reclusiveness isn’t just about getting away from the paparazzi, however, as it is a discreet and prosperous offshore asset protection jurisdiction. Nevis has been part of the offshore finance scene since 1984, the same year the nation’s CIP was launched, and global financial advisors and asset protection lawyers agree that there are only two nations in the world that boast the most resilient asset protection regulations and respect for personal wealth: Nevis and the Cook Islands. 

Nevis, although small in size, exhibits a robust international financial services sector, independent of the laws the government has implemented in St. Kitts, akin to state local banking or trust regulations in the USA differing from federal ones.

While both St. Kitts and Nevis have differing separate regulations, they are bound by federal law when it comes to issuing passports and citizenship certificates. The St. Kitts & Nevis passport, a robust travel document coveted by many around the globe, is available to the wealthy who invest in the country and pass the government’s due diligence process. The citizenship by investment unit (CBIU) naturalize investors and arrange passports within a few months if they meet the CIP requirements, a program that is under the direct control of the Office of the Prime Minister.

A crypto-paradise in the Caribbean Sea

Crypto investors understand convenience, the entire setup of crypto blockchain technology is based upon quicker, easier, and safer transactions throughout the world. So if you do value a convenient lifestyle, as well as total financial freedom; St. Kitts & Nevis is the place for you.

The Caribbean nation noticed the importance of cryptocurrency and the potential it holds, hence, the government launched a new Virtual Asset Bill in 2020, and amended it further in 2021, to ensure that trading in virtual assets – such as cryptocurrency – was legal and simple within the country.

The bill allows citizens and residents of the nation to legally:

  • Exchange between a virtual asset and fiat currency;
  • Exchange between one or more forms of virtual assets;
  • Transfer a virtual asset whether or not for value;
  • Safekeep or administrate a virtual asset or instruments enabling control over a virtual asset; and
  • Participate in and provision of financial services related to an issue or sale of a virtual asset

This bill, along with the nation’s pro-crypto banking system, has made St. Kitts & Nevis a top destination for crypto investors. The country’s fondness of virtual currency is well documented and continues to grow, as the Eastern Caribbean Central Bank (ECCB) in St. Kitts & Nevis launched a digital currency pilot program dubbed DCash, highlighting the innovation and technological appreciation of the country.

The steps the country is taking to welcome cryptocurrency along with its CIP are transforming it into a crypto-hub, attracting major crypto investors such as Roger Ver, who is one of the world’s most famous Bitcoin investors/advocators. Ver himself became a citizen of St. Kitts & Nevis through investment, even renouncing his American one to obtain complete financial freedom, and is now residing on the Island of St. Kitts with his mind at ease. 

Overview of onshore and offshore bank accounts in St Kitts & Nevis 

Banking in St. Kitts & Nevis is one of the major attractions of the country, but how does it work? In short, very well! The banking system in the Caribbean nation is robust and comprehensive, and what is most impressive is how crypto-friendly it is. The ECCB is based in St. Kitts, and it is the entity that issues and runs the Eastern Caribbean Dollar (XCD), the region’s leading currency. 

The XCD is the official currency of a multitude of Caribbean nations, including St. Kitts & Nevis, Dominica, St. Lucia, St. Vincent, and the Grenadines, as well as the two British Offshore Territories of Anguilla and Montserrat. The XCD is pegged to the USD, relieving you of the fear of any currency fluctuation that may affect your wealth. 

The ECCB regulates local banking throughout all of the aforementioned Caribbean countries. Local banking is mostly dominated by Canadian financial institutions, which are known to be quite conservative and evasive to crypto-currency. The change, however, is increasing as more of these Canadian institutes are now pulling out of the Caribbean, leaving local banks with a higher share of the market.

When it comes to international banking, however, it becomes more interesting, as there are a separate set of rules for banks working the international market. The numerous offshore banks in Nevis, for example, do not have any relations with St. Kitts or the ECCB but are subject to Nevis’ local regulations in addition to international standards.

Offshore and international banks are prohibited from dealing in local ECCB regulated retail banking, something which they are not interested in, as they operate on an entirely different level of complexity and elite clients. They prefer to maintain discretion and higher minimum balances (six figures or more) than their retail counterparts. They don’t want anyone to jaunt in and open an account but reserve their seats for the best the world has to offer. There are exceptions, of course, especially when you are introduced by a reliable partner with strong connections on the islands such as NTL.

While there are no international banks on St. Kitts, the island of Nevis is home to three high-class, licensed offshore banks. What is more interesting is that you need not be a resident or citizen of St. Kitts & Nevis to enjoy the services they offer, which are fairly similar to those of international banks, but they do focus on wealthy individuals and their families who are in the midst of obtaining, or who have obtained, St. Kitts & Nevis citizenship through the prominent CIP. 

This is especially good news to crypto investors, as the crypto-friendly stance of these banks makes it simple to receive dollars from notable crypto exchange sources or other similarly pro-crypto banks. They also provide escrow services to make the lives of their clients easier and safer when dealing with real estate and CIP issues. 

How we help the savvy investor set up shop in St. Kitts & Nevis
  1. ASSET PROTECTION TRUST AND LLC:   The strongest asset protection framework in the world, the Nevis Exempt Trust and LLC combo allows you to own multiple LLCs and ring-fence different projects within them for heightened asset protection. Your LLC is the poster of your business, and its name will appear on all bank and brokerage accounts, but keep in mind that Nevis doesn’t keep a public register of shareholders or beneficial owners to maintain optimal privacy. Your Trust, meanwhile, stays behind the scenes covering inheritance, succession requirements, and protecting your crypto, property, and fiat assets from external elements.
  1. OFFSHORE CRYPTO-FRIENDLY BANK ACCOUNT: A great thing about your Nevis offshore Trust and LLC combo is that it can open bank accounts all over the globe. Financial hotspots such as Switzerland, Singapore, the US, and many others become instantly available to you. Just don’t spread your personal and financial data wider than is necessary. And therein lies the elegance of crypto bank accounts in Nevis, a financially safe, discreet, and beneficial option which is quick to set up and easy to use. Through our connections at NTL, we help you open accounts in less than a day. 
  1. PASSPORT BY INVESTMENT: Financial freedom is all about robust insurance policies, and none is as effective as citizenship by investment (CBI), a venture you and your future generations will benefit from indefinitely. Becoming a St. Kittian through CBI gives you the choice of becoming a tax resident of the nation by residing there for more than six months a year or continuing to benefit from your status as a citizen of the country while residing anywhere else around the globe. For those wishing to become tax residents, the twin-island nation comes with an abundance of welcome surprises, as the country does not impose any personal, inheritance, wealth, or capital gains taxes. This lax tax regime attracts many investors to the St. Kitts & Nevis CIP each year. The program, which is simple and straightforward, offers two routes of investment, a donation to the government’s sustainable growth fund, or, the more popular option, investing in real estate. The latter option is the optimal route to establish instant, long-term links and substance in the country. Choosing St. Kitts & Nevis as your new base of operations means you can avoid the tedious task of reporting your finances to your country of origin and being able to choose a tax regime that is more beneficial to you. The only exception to this, however, is US citizens; as the USA tracks finances worldwide, renunciation of US citizenship is the only route to obtaining full financial freedom and taxation benefits. 

While the ludicrous natural beauty of St. Kitts & Nevis, along with the hospitable population, make it a great place to wind down and relax, gaining its citizenship and the advantages of asset protection as well as opening a bank account can be done remotely without ever having to book a flight. Asset protection and banking benefits can even be unlocked prior to having the citizenship application approved.

Your new business, financial setup, and life plan are fully aligned and compliant -if structured and executed properly. That last part is vital, as getting the entire process, application, and framework correct at the start ensures you benefit endlessly; mistakes, however, require course correction and can be extremely harmful. This is why it is worth a fee to consult with RCBI firms that have the expertise, knowledge, and transparency that can transform your life for the better. 

The EU and OECD recently awarded St. Kitts & Nevis with a clean bill of financial health, confirming the nation’s compliance with international standards. Neighboring countries, such as Dominica, for example, were actually blacklisted, highlighting the wide divide between St. Kitts & Nevis and its Caribbean counterparts.

St. Kitts & Nevis veteran consultants at NTL Trust are ready and able to help you begin the transformative journey and take advantage of a robust Trust Banking & Citizenship package. So no need to postpone the venture that could elevate your entire lifestyle anymore; contact us to book a free consultation with our experts. 

Interested in contributing a sponsored feature? Email us on cn@imidaily.com and see all our promotional options here.

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After Historic Legal Tender Move, Bukele Aims to Open BTC-Denominated Golden Visa in El Salvador

 

In a landmark decision expected since plans were first announced during the Bitcoin 2021 Conference in Miami on Saturday, a supermajority in El Salvador’s parliament today approved the bill that makes Bitcoin – alongside the US Dollar – legal tender in the Central-American country with immediate effect.

The adoption of the law that makes El Salvador the world’s first country to have BTC as a legal tender has the following immediate effects:

  • Vendors in El Salvador must accept payments in either US$ or BTC*;
  • There will be no capital gains tax applicable to the realization of BTC gains;
  • Tax contributions may now be paid in BTC;
  • Prices may be expressed in BTC terms.

For those unable to accept BTC payments due to lack of familiarity with technology, the government promises to provide “alternatives that allow the user to carry out transactions in bitcoin and have automatic and instant convertibility from bitcoin to USD if they wish,” the law states. “Furthermore, the State will promote the necessary training and mechanisms so that the population can access bitcoin transactions.”

Bukele has said that Salvadorians “have to take the bitcoin, but not the risk,” to which end he plans to set up a BTC-denominated trust fund equivalent in value to US$150 million through which Salvadorians could exchange their BTCs for US$, should they prefer not to hold BTC. Such conversions, according to BTC Times, would be conducted through a government-issued wallet, which Bukele plans to build together with crypto-payment app-developer Strike, the same company that assisted in the formulation of the new law.

The president also clarified that there would be a 90-day adaptation-period from the bill’s taking effect to allow for the implementation of the necessary infrastructure.

In a Twitter Spaces conversation early this morning (late last night in El Salvador), President Nayib Bukele promised to sign off on the new law no later than “first thing in the morning,” according to CoinTelegraph.

Permanent residency for US$106,000 (at today’s rates)

The promise of a jurisdiction that will not tax crypto transactions, that will bring millions of unbanked citizens into the formal economy, and that is actively promoting a private sector-driven ecosystem for crypto development has generated instant interest in relocation to the country. In the same Twitter Spaces conversation, Bukele revealed he would now turn his attention to preparing another bill, one which would enable El Salvador to grant permanent residence permits to those who would invest ฿3 in the country, some US$106,000 at current rates.

Such investments, reportedly, may take the form of real estate, business capitalization, and a number of still-undefined investment types to be defined by the government. The minimum amount, according to BTC Times, would be denominated in BTC rather than dollars. It was not immediately clear whether or how those minimum investment amounts would change with the fluctuation of BTC’s price.

Permanent residency status in El Salvador can also lead to citizenship through naturalization, on a time-frame of 1-5 years. Those eligible include:

  • Persons who are nationals of Spain or Latin American countries, who have established a one-year residency;
  • Foreigners from anywhere who have established a five-year residence in the territory;
  • Foreigners who are married to Salvadoran spouses and have established a two-year residency; or
  • Persons who have rendered exceptional service to the nation. (Available only by legislative decree).

Salvadorian citizenship provides for a great deal of mobility; according to the Henley & Partners Passport Index, holders of Salvadorian passports are welcome without a visa in 134 destinations worldwide, including the Schengen Area, the UK, Hong Kong, South Korea, Japan, Singapore, the UAE, Brazil, and a host of other desirable countries.

More Policy Updates

Post Grid lazy load

Having made Bitcoin legal tender in a sovereign state for the first time, Salvadorian President Bukele now promises permanent residency to those who invest BTC 3.

An amendment to the country’s Immigration Act would allow the Bahamian government to specify investment amounts and types starting next month.

Malta becomes the latest country to capitalize on the growing trend of remote-workers by aiming for consumption rather than taxation.

 

The post After Historic Legal Tender Move, Bukele Aims to Open BTC-Denominated Golden Visa in El Salvador appeared first on Investment Migration Insider.

An Interview With Roger “Bitcoin Jesus” Ver on RCBI, Crypto, and Flag Theory


Anatoliy’s Analysis
With Anatoliy Lyetayev

Anatoliy Lyetayev covers topics that help industry professionals be more efficient, do more business, and make more money.


I recently sat down with the one and only Roger Ver, one of the biggest advocates of cryptocurrency and a Bitcoin legend, and discussed how RCBI and cryptocurrency have transformed his life.

Roger is a citizen of St. Kitts & Nevis, a passport he obtained through investment, and is officially a former citizen of the US. Having renounced his American citizenship after getting his St. Kitts & Nevis passport, Roger completely understands the benefits of RCBI, and he highlights how cryptocurrency and RCBI complement each other perfectly to grant investors unhindered mobility and financial freedom. We covered many topics throughout our interview, and here are the highlights.

Number of Americans renouncing citizenship likely far greater than reported

I kick things off by questioning Roger’s decision to renounce a citizenship that millions of people dream of. Even highlighting that investors put in huge amounts of money just to get the Green Card through the EB5, and then wait years for the passport. 

Roger’s response highlights one thing; the American dream is not what it used to be. “Millions of people thought the world was flat but that doesn’t make it true, and millions of people think the US passport is the best or the US is the best place to live but that’s not necessarily true either” said Roger. He continued to say that large numbers of US citizens are renouncing their citizenship each year, and when I asked ‘do you have numbers?’, Roger responded with an estimate of 100,000 a year. 

Roger went on to say he believes that the US government is not completely truthful in their announcement of the number of people renouncing their American citizenship, using his own case, along with some of his friends who followed suit, as examples of renunciations not officially announced by the US government. 

When he renounced his citizenship, the US government reminded Roger that he would not be able to vote, serve in the armed forces, or claim social security tax benefits anymore. “They don’t remind you that you don’t have to pay social security tax either” exclaimed Roger.

Replacing something I dread with something I love

One great point of allure of a St. Kitts & Nevis citizenship, to Roger, is that the Caribbean nation does not impose income, inheritance, or capital gains tax on its citizens. He continued to say that not needing to file a tax return at the end of each year “is heaven to him”. Considering his tax returns in the US consisted of thousands of pages, everyone can understand where he is coming from.

Roger says that, instead of having to spend huge amounts of time doing something he dreads, St. Kitts & Nevis has allowed him to do what he loves instead. He is currently residing in St. Kitts & Nevis and travels regularly, having to renew his passport almost every year because it keeps filling up with stamps, and says he has no issues traveling the globe.

Cryptocurrency a key element in financial freedom

I then asked Roger about his view on cryptocurrency and how it plays into flag theory and financial autonomy. Being one of the leading figures in the world of cryptocurrency, Roger’s response was as emphatic as it was comprehensive.

“I’m a voluntarist and I think each individual owns their own life, and they should have complete control of their own life. They shouldn’t need permission from governments to do anything that’s peaceful. Cryptocurrencies enable individuals to do exactly that, so that’s why I’m so in love with digital currencies.”

Roger believes that each individual should own and have complete control over their lives and that cryptocurrency allows them to do so. When I asked him if governments won’t be so enthusiastic about cryptocurrency, Roger simply answered “that’s why I like it”.  

Roger further explained that, in the cryptocurrency world, you can conduct business without the hurdles of traditional currency, such as fighting for a bank loan or begging for credit. It is all instant and simple. 

He then went into more detail on cryptocurrency, highlighting that not all digital currencies are made equal, and for him to believe in one “it has to be fast, cheap, reliable, and easy to use”. He highlighted that, since cryptocurrency differed from traditional currency, it came in a limited supply, so the more people that use it the higher its value becomes. Roger went on calling out governments for not adopting it yet. Using his new home as an example, he explained that if a country like St. Kitts & Nevis formally adopted cryptocurrency, such as Bitcoin cash, and then other countries began jumping on the bandwagon, the Caribbean nation could see itself become one of the wealthiest countries in the world.

I then became the first person ever to ask Roger what the first principle of cryptocurrency is. Roger responded with “self-sovereignty or self-responsibility” and went on to expound that each individual can be in complete control over it themselves. 

I then asked Roger what his mission in cryptocurrency is, and he responded that “my mission with cryptocurrency is to provide the tools and the infrastructure to allow people to engage in more commerce with each other and do more free trade. More economic freedom leads to more economic growth and more economic growth leads to a higher standard of living for everybody; with better medical technology, better computer technology, better spaceships, cars, and everything (…) so it’s a tool to make the world a better place for everybody and it’s the world I’m living in too and that’s why I’m doing this day in and day out.”

No one knows when a government will go berserk

Asked about what he knew about flag theory, Roger responded simply: “You have your citizenship in one country, you live in another, and do your business somewhere else.” And that is exactly what he is doing. When quizzed on how many flags he currently has, Roger said four, with St. Kitts & Nevis and Japan being the two public ones.

I then asked him if cryptocurrency can be considered an additional flag. Roger responded by saying it actually replaces an existing one. This is a clear indication that cryptocurrency is no longer in the future, but very much in the present.

“Everyone in the world should have a second passport” was Roger’s response to the question of who should get a second citizenship. “Having a second passport gives you the opportunity to flee to somewhere else when the government goes crazy, and if you don’t have a second passport you are at the complete mercy of the government that controls the passport that you have.”

Roger astutely highlights that “you never know when a government goes crazy” and drew on post-world war Germany and the sudden shift to the Nazi regime as an example. I chimed in with my own experience, having been born in a country that no longer exists (the Soviet Union). 

Roger highlighted that putting all your trust in one government leaves you vulnerable while having a second passport gives you the support of another government in case one decides to go haywire. 

Roger believes that by combining cryptocurrency, second passports, and a libertarian mindset, you can truly free yourself from the shackles and work towards total freedom and prosperity. Roger went on to state that “libertarianism and free markets lead to a more prosperous world for everybody. If you take a look at the countries with more freedom, they have a higher standard of living and higher economic growth. Just look at North Korea and South Korea.”

Roger believes that everybody in the world should be advocating for more economic freedom because it directly leads to a better life for everyone.

More From Anatoliy’s Analysis

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In his interview with Anatoliy Lyetayev, Roger Ver says the US government is lying about how many Americans are renouncing their citizenship.

HNWI-population growth shows Kenya is on the path to creating large pools of potential clients. Now, all they need is awareness of RCBI.

Anatoliy Lyetayev offers three reasons you might think twice before sending the next email from a Nigerian prince to your spam folder.

 

The post An Interview With Roger “Bitcoin Jesus” Ver on RCBI, Crypto, and Flag Theory appeared first on Investment Migration Insider.

Interest in Secret Bay Magnified by Vaccine Rollout, Crypto-Surge, and Post-COVID Demand for CBI

The Crypto-HNWI Frontier Market: 144,000 Overnight Millionaires Need New Tax Residencies

Opinion of the editor


Imagine it’s 2015.

You’re a 20-something recent graduate, just starting out in your professional career with barely a nickel to your name and a starting salary of $30,000. Listening to a podcast on your lunch-break, you hear about something called cryptocurrency, a new technology that promises to liberate humanity from the yoke of central banking and fiat money. “Tall order,” you sardonically conclude at first. But maybe – just maybe – it could work if enough people bought into the idea. You decide to look into it.

Over the course of two weeks of research, you gradually come to the realization that this new technology really is revolutionary. Some luminary has created a new form of reserve currency that is more limited, durable, portable, and fungible than even gold. You learn that there will never be more than 21 million bitcoin.

Having only recently started your career, your savings account has only a modest balance of $5,000. In a few years, you reflect, that won’t seem like such a big amount. Furthermore, you reason, the only way to create a large fortune in a single generation is to take large risks. You have nothing to lose except $5,000. You are young; you’ll make it back.

So, you cast the proverbial die.

You convert the entirety of your savings account to bitcoin. 20 of them, to be precise, as that’s all your pitiful account balance will permit.

For the next six years, you do nothing about your bitcoins. Instead, you focus on building a career, the contributor to your net worth over which you have the most control. The price movements of virtual money, after all, have an external locus of control; no use focusing on what you can’t influence.

Windfall
One Sunday morning in February 2021, as you’re browsing Twitter from your bed, a headline catches your eye: “Bitcoin Price Hits Historic $50,000”. At this moment, it dawns on you.

You are a millionaire. You are a High Net Worth Individual. You are the 1%.

More importantly, you were right. The series of letters and digits that the “experts” said was “based on nothing” and of utility mainly for money launderers and drug dealers have catapulted the value of your portfolio by 19,900%. Your banker uncle, who in 2015 disabused you of your youthful naïveté and sophomoric ideas of the future of currency by patiently explaining “how money works in the real world” now has to sit through company-mandated crypto seminars.

The politicians, at first, ignored crypto. Then they laughingly dismissed it as not being “real” money. Then they tried to fight it with laws. But now, finally, crypto is winning. The very same institutions that financed the politicians’ campaigns are converting parts of their cash-equivalents to bitcoin and ether. The “power behind the power” now has skin in the crypto game, which means the politicians they sponsored (the public face of power) will not try to kill the technology.

Now that politicians, despite their best efforts, must begrudgingly acknowledge that crypto is real, valuable, and here to stay, they want their “fair share”. They took no risks with their savings accounts but they want a sizable chunk of your gains nonetheless, usually in the form of capital gains tax and sometimes even VAT.

Prior to 2017, your net worth had never exceeded $20,000. Now, you could sell your crypto for a million dollars but, if you do that, you’ll have to part with several hundred thousand dollars (depending on where you are a tax resident), more money than you have ever made in your day job. If the price of bitcoin grows ten-fold again within the next five years, you’ll have to part with millions of dollars in capital gains tax.

Salvation
But there is, you learn, an alternative. The tax authorities of many countries around the world, including some large and advanced ones like Germany, Portugal, Switzerland, and Malaysia have decided to treat cryptocurrency as, well, currency, rather than as a commodity or security, which means you can buy and sell it without paying taxes.

To enjoy those tax benefits, you come to understand, it will be necessary for you to actually move to another country and become a tax resident there. If you’re an American (which many of the newly minted crypto-millionaires doubtless are) you’ll additionally have to give up your citizenship to fully extricate yourself from tax obligations on your crypto earnings, and you must do it before the balance of your account exceeds $2 million as, otherwise, you’d need to pay an exit tax upon tax emigration.

In brief, you’ll need a residence permit in a country that doesn’t tax crypto earnings and (if you’re an American) another citizenship as well. And you need it yesterday.

In many cases, that means you’ll need the services offered by the fast-growing investment migration industry.

How many crypto-millionaires are there?
Just like the price of cryptocurrencies, the number of crypto-millionaires swells and contracts with astonishing volatility but, over time, it is going up.

At the moment, there is no way to precisely measure the number of crypto-millionaires. But there is at least one decent metric by which it can be roughly estimated: The number of crypto-addresses with a balance exceeding US$1 million.

In February last year, there were about 11,000 million-dollar-plus bitcoin-addresses. That isn’t the same as saying there were 11,000 bitcoin millionaires; several of the million-dollar addresses may belong to a single person and therefore reduce the number of millionaires but, vice versa, one person may have four accounts with $250,000 in each and thus not be counted as a millionaire. In any case, the number of crypto-accounts worth more than a million is an acceptable shorthand for the number of crypto millionaires.

As of Feb 20th, 2021, more than 103,000 bitcoin addresses have a balance in excess of $1 million. That’s an almost ten-fold increase in a single year.

And that only counts bitcoin addresses. We don’t know exactly how many alt-coin addresses are worth a million or more but, for the last few years, BTC has made up between 50 and 70 percent of aggregate cryptocurrency market capitalization. If we assume BTC dominance at 60%, then, using bitcoin as a proxy, we can estimate that the number of alt-coin accounts worth a million or more is about 40% of the equivalent number for BTC. That would imply that there are roughly 144,000 million-dollar-or-more crypto accounts overall.

One crucial metric that investment migration executives consider when deciding on which markets to focus their marketing and expansion plans is the number of HNWI residents. If Crypto were a country, its HNWI population would rank 29th in the world, just behind Saudi Arabia and ahead of Israel.

And that is just today. If the price of bitcoin goes up by another order of magnitude in the next few years, we’ll have million-and-a-half crypto millionaires, a HNWI population greater than India, the UAE, and Hong Kong combined.

Many of these crypto-millionaires will have a story similar to the one described above: For the first time in their lives, they have some serious shekels, and they’re not about to just hand over a quarter of it if there are alternatives. Thanks to investment migration, there are alternatives. These overnight millionaires have upwards of 80% of their portfolios allocated to crypto and can trade it from anywhere. They’re not tied to any particular geographic location.

Investment migration firms that can provide viable solutions for this demographic stand to benefit tremendously, especially if they can structure products that resolve the typical challenges these crypto-millionaires have.

The challenges idiosyncratic to crypto-millionaires include:

  • How do I relocate to a country that doesn’t impose capital gains tax or VAT on crypto-sales?
  • How do I document my source of funds?
  • How do I pay for my qualifying investment with cryptocurrency?
  • How do I conclusively cut the tax-ties with my current country of residence?

The crypto-millionaire segment will become an enormous market unto itself. Start preparing today.

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You Can Use Crypto to Invest in a Turkish Citizenship

At CIP Turkey, we place a very high value on our clients and their desire to save time and money. That is why we are always striving to find new and better ways to improve our efficiency and performance when it comes to helping them acquire Turkish citizenship.

We already pride ourselves on providing some of the fastest processing times in the industry, but now we can offer even more speed, and cost savings, by facilitating money transfers in digital (crypto) currency.

Digital currency has already had a decade to embed itself into our daily lives, and there is now widespread adoption from major institutions, retailers and service providers throughout the world. 

The main advantage to facilitating transactions in digital currency is the time and money saved in comparison to using the traditional SWIFT transfer system – which incurs high transaction fees and can take up to several business days to arrive at its intended destination.

Once the digital currency is received, it is immediately converted back into fiat currency (such as USD), allowing us to immediately get started on preparing our clients’ applications.

According to an IMI article published in 2019, the investment migration industry had steadily increased to a conservative estimate of $21.4 billion of revenue during that year. The article also went on to project an annual revenue of $100 billion by 2025, as long as the 23% CAGR rate would persist, which in our opinion is a fairly safe bet considering recent world events. 

Banking institutions have been a bedrock within our society for hundreds of years. However, their monopolization of the world of financial transactions during that time has virtually given them free rein when it comes to attaching high costs for cross-border transactions.

Most banks have also infamously acquired a knack of charging slightly higher rates when converting currencies, adding yet another layer of stealth charges, and amassing hundreds of millions of dollars a year in the process.

It is estimated that SMEs make approximately $10 trillion in international bank transfers annually, costing a whopping $200 billion in exorbitant bank fees. This is particularly prevalent within the global investment migration industry, in which international fund transfers are a major component.

More people than ever are voicing their grievances about the outdated and unfair world of excessive bank fees, which is a large part of the reason why digital currency is beginning to take centre stage.

One of the directors of CIP Turkey is also a partner in an advanced cryptocurrency trading platform, based in Sweden. This important connection provides CIP Turkey with the expertise to seamlessly integrate the use of digital currencies, such as Bitcoin and a host of other altcoins, when facilitating cross-border fund transfers on behalf of investors.

It is worth mentioning that this is not just a concept, as we know that some of the Caribbean programs are already accepting digital currencies from investors. Additionally, CIP Turkey have recently enabled one of our CIP investors to transfer funds via digital currency – which arrived in less than a minute, and we have many more investors showing a strong interest in following suit.

We would also be willing to extend such a facility to other RCBI providers who would like to take advantage of the many benefits that digital currency transactions would provide.

Please feel free to get in touch with us to discuss this opportunity in more detail. Visit us at CIPTurkey.net, email us on info@cipturkey.net, or call us on +90 555305 32 93.

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The post You Can Use Crypto to Invest in a Turkish Citizenship appeared first on Investment Migration Insider.