What is the use of a St. Kitts passport?
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Due to the different regulatory policies of various governments, high-net-worth cryptocurrency investors are increasingly "difficult". Those who can Countries that “cash in” cryptocurrencies have naturally become new “safe havens.” So, how do cryptocurrency investors face this situation? Why can St. Kitts become a “talisman” for global cryptocurrency investors?
1. The world is "chasing" cryptocurrency, and the disclosure of virtual assets is gaining momentum
Cryptocurrency is not a financial product that is legalized around the world. Most countries Disclosure of these virtual assets is gaining momentum. In 2020, 137 countries and regions reached consensus under the call of the OECD and the G20 and issued a long-named regulation called "Tax Treatment of Virtual Currencies and Current Tax Policy Hot Topics" 》, this document mainly provides clear regulations on the definition and scope of virtual assets and encrypted assets. At the same time, the OECD is also vigorously promoting the process of tax-related information exchange on global financial accounts, and is committed to bringing crypto assets into the scope of the CRS** unified reporting standards, so that crypto assets will also become an important part of global tax information exchange. This is a trend in a large framework. Let’s take a look at how European and American countries face crypto-assets:
1. European Union
2. United States
U.S. Department of the Treasury Announced that it will invest US$80 billion in the United States Internal Revenue Service (IRS) over the next 10 years to support the upgrading of the tax system, create the most rigorous real-time banking transactions, and track and report to the IRS. At the same time, the IRS has also been officially authorized by a federal court to obtain all information on people who use virtual currency transactions for more than $10,000.
2. What functions can the St. Kitts passport play?
With an influx of cryptocurrency investors, this young and unregulated asset class is getting bigger. Due to different government regulatory policies in various countries, high-net-worth cryptocurrency investors are becoming more and more "difficult". So, how do these investors and the Russian tycoons we mentioned earlier face this situation?
Speaking of the paradise of digital currency and cryptocurrency, there is one country that must be mentioned, and that is St. Kitts. In 2021, the St. Kitts government passed the "Virtual Assets" Act, creating a complete system of legal regulations for cryptocurrency, and evolving Bitcoin and virtual currencies to the point of national legalization. With the blessing of this bill, more and more big players in the currency circle began to give up their American citizenship and embrace St. Kitts.
For example, the well-known Bitcoin angel investor ROGER VER, known as the "Jesus" of Bitcoin, is a citizen of this country. And Pavel Durov, known as the Russian Zuckerberg and who created the encrypted instant application platform (TON), is also a citizen of this country. The main functions that the St. Kitts passport can play include:
1. Protect the privacy and security of personal accounts
Combining assets such as cryptocurrency with a second identity can Achieve the purpose of releasing financial autonomy and wealth diversity. Cryptocurrencies are valuable assets that can be sold, traded, or given away at will. In St. Kitts, transactions have been legalized, allowing the exchange of virtual assets and legal tender and the exchange of virtual assets to be protected by law.
2. Tax advantages
There is no capital gains tax, property tax and income tax, and the safety of local assets is strictly protected by law, etc. All income, interest, gifts, property and inheritance outside St. Kitts are exempt from tax.
3. Visa-free
With this St. Kitts status, you can travel to more than 150 countries or regions without a visa, including the United Kingdom, Schengen, Singapore, Hong Kong, China, etc. .
Visa-free travel is particularly important for people like Roger Weir who have given up U.S. citizenship. The scope of visa-free travel will be wider under the combination of multiple identities.
Cryptocurrency markets are notoriously volatile, so diversifying their portfolios into more stable assets helps ensure the preservation of their wealth. However, this can be a challenge in countries with strict regulatory and tax legal systems. A saying that many financial tycoons often say is Plan B. I hope you won’t use it, but you must have it.