Eternity Law International News Choice of jurisdiction for the exchanger

Choice of jurisdiction for the exchanger

Published:
February 17, 2020

CHOICE OF JURISDICTION FOR REGISTRATION OF EXCHANGE OR BITCOIN EXCHANGE

Choosing a jurisdiction to register an exchanger or Bitcoin exchange is an urgent issue for those who launch a project in the fintech segment.

It is worth paying attention to blockchain technology and smart contracts.

And if you want to avoid problems with taxation and have the most favorable legislative and business climate, you should also pay attention to the following countries, in whose jurisdiction many opportunities have been created for the world of cryptotechnologies.

Among all existing jurisdictions, the most loyal to the cryptocurrency market are: USA, UK, Estonia, Netherlands.

USA

If we look at modern statistics, then in the first place among the jurisdictions that register companies in the field of cryptocurrencies by the number of users and registration of Bitcoin in the world, is the United States.

And this is not surprising, since Silicon Valley is the founding place for most of the cryptocurrencies that operate on the basis of blockchain technology.

A large percentage of countries turn to the USA for the legal regulation of blockchain technologies and the cryptocurrency market. Losses and profits from the cryptocurrency market are an object of taxation aimed at capital growth.

GREAT BRITAIN

The British public has shown great interest in digital currencies. Britain is also home to some of the world’s most popular bitcoin products and services.

Despite this, the UK government and regulators are surprisingly quietly discussing the issue of digital currencies and practically do not recognize the development and implementation of cryptotechnologies.

There are three areas of regulation that should be considered when studying this issue: consumer protection, prevention of money laundering and taxation. Foreign regulations also have implications for those who work in the UK.

ESTONIA

Estonia is the first EU jurisdiction to legitimize the work of the crypto sector and to legally organize and conduct ICOs based on blockchain technologies. Among the advantages:

  1. Corporate tax rate 0%.
  2. You can create a company through an electronic residence (without coming to Estonia personally).
  3. The share capital is 2500 euros (capital can not be paid when creating a company, it can simply be announced).
  4. Cryptocurrency based licenses.
  5. Low bureaucracy and low tax policy.
  6. A non-resident of Estonia may become the owner / member of the board.
    Opening a bank and trading account in Europe.

NETHERLANDS

The Netherlands is an “advanced” state in matters of cryptocurrency. In the Dutch city of Arnhem, an experiment with bitcoins is being conducted – you can pay for utility, dental and other services with electronic currency.

According to the fiscal rules of the Netherlands, cryptocurrencies fall under the taxation program.

The banking sector of the Netherlands positions blockchain as a promising area for improving financial technology. Dutch authorities organize cryptocurrency conferences. And 20% of the population keep their savings in non-financial funds.

With all the “friendliness” to cryptocurrency and blockchain, the cryptocurrency turnover is not regulated at the legislative level. And the country notes the requirements for customer accounts and data protection are more stringent.

It is also worth noting 6 more popular jurisdictions: Australia, Finland, South Korea, Canada, Sweden, Denmark.

Our company is based on experience with this sphere and Eternity Law International specialists will be happy to рrovide you with assistance in resolving this issue.

You could be interested

Canadian MSB licensed companies setup

Our group of experts can help you with setting up a money service business in Canada. It includes a procedure of legal application, regulatory interaction, the creation of required paperwork, and constructing the payment system, we recommend contacting our specialists to deal with it. Why Canada? This state encourages trade, and there are several fintech...

Overview of Hong Kong Asset Management License: terms and permissions

For persons and legal entities looking to capture the share of Hong Kong’s exchanges, the SFC is the setter of a regulatory framework, having issued the Ordinance regulating derivative financial contracts (SFO). It refers to all market activities and details each of them. Hong Kong asset management license allows the delivery of a service of...

Crypto license in Gibraltar

Such a crypto-license is specially-approved permission allowing provision of services with digital assets, incl. digital wallets management and crypto-exchange implementation. This commercial sector is legal and controlled by the GFSC. To obtain a permit in such area, you must send extensive documentation list and wait for review. Our team is ready to give you highly-qualified...

Company registration in Hong Kong

Having an impeccable rank of a financial backer’s heaven, Hong Kong offering unmatched oportunities for establishments, looking to prosper in Asia and then some. As a worldwide monetary center point represented by a supportive of business organization, it investigates every possibility in its obligation to cultivating achievement. Nowadays, Company registration in Hong Kong became crucial...

Hedge Fund in Switzerland

One of the most prestigious states for investment start-ups is Switzerland. In the last decade, many investors decided on establishing their professional activities here. Also, the state has obtained a status of a beneficial hub for the fund managers working here, and the majority of the facilities are formed as οffshore hedge funds in Switzerland....

Differences between the AG and the GmbH companies

We propose to consider these two terms in detail What Is Aktiengesellschaft (AG)? AG is a shortening of Aktiengesellschaft. It is a German expression for a company restricted by share possession whose offers might be exchanged on a financial exchange. The term is utilized in Germany, Austria, Switzerland and South Tyrol for organizations joined there....
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7