Attracting the crypto "dollar"
Countries are continually trying to attract investors, they offer tax breaks to companies to set up factories or move head offices to their capitals to create jobs and bring in more revenue. They try to attract as much money in and they compete heavily to land the big fish, the whales so to speak. It is getting to the point though that it will be the crypto-rich who will command the attention of the countries. What will they offer?
Currently, tax is an issue for crypto as there are very few clear lines, a lot of grey and wild disparities between percentages. This creates a problem for the authorities as even though they want their piece of the pie, crypto is highly portable and cares very little about borders. This means owners are already starting to make living location choices based on what level they are going to have to pay to authorities. Crypto enthusiasts aren't usually the most willing when it comes to authoritarian laws.
This means that there is going to be a new competition starting where small nations are able to attract large business. Binance for example is already shifting its headquarters to Malta and, there is already many other hodlers thinking similarly. Malts has a population of under 500,000 yet, are likely to hold some extreme levels of wealth in the coming years. This is a facet of the decentralization of cryptocurrencies as people are not bound by where their assets are 'registered' and since there is no physical transport or transfer required, customs can't really stop it at the borders.
I think that these factors are going to cause significant changes in the legislation of multiple as countries don't generally like to lose wealth to other nations. Does this mean that travel laws will be affected and Visas granted or denied based on crypto holdings? Don't know. It is also possible that in time, groups of crypto holders will be buying islands and attempting to become autonomous nation communities to protect their wealth. Already in this world, the rich and famous enjoy perks that others do not but for the most part, they have had to develop, create, sell, employee and pay taxes of some sort along the line. Crypto is a little different.
These things are all so far outside of my area that I can't really predict what is going to happen but, I do think tere are going to be many issues of contention as the maximiser crypto folk go head to head with the maximiser government authorities. It isn't going to all be smooth sailing in this area and there are likely going to be concessions on both sides as a new economy that operates quite differently to past forms is brought into the global fold. Whenever wealth accumulates, there are going to be many hands attempting to make a grab.
What do you think about things now and in the future?
Taraz
[ a Steemit original ]
The photos are from Cairns in Australia, and the first one is from the local beach I lived beside.
Governments are already trying to grapple with cross-border trade and taxing rights in the internet age (think Apple, Google etc) and this is causing massive head-aches as these companies are highly mobile and have sophisticated corporate structures that make the most of tax treaties and countries with low tax rates etc. But all this is "pre-crypto" and the crypto world is way more complicated! This is very much "my world" as an accountant and tax adviser and it is interesting to watch the moves being made by different nation-states; especially when many are keen to appear "friendly" to business, fintech, innovation and the emerging digital world more generally (yet most want to tax it!).
it is going to get very messy :)
yep, it so is!
I honestly have no idea how all of this malarkey will play out.
I feel sure though that governments will try to legislate and control crypto assets and fear that the easiest way to achieve this is to somehow criminalise it for the little guy thereby allowing the elite to seize the advantage again.
I do hope I am wrong...
I have read recently that China is scoring it's citizens on their activity in a similar way that credit scores are imposed. Depending on their quality of citizenship depends on what they are allowed to do - i.e travel!
Scary shit eh and a perfect way to put the brakes on crypto for the common man.
:(
xox
Yeah, they took that episode of Black Mirror way too literally.
Thats is scary, I really hope you are wrong too!
Migration to more crypto-friendly countries in the future is highly inevitable, it is already happening and it wont stop because these regulators wont stop as well, i know someone who is from Russia who cannot access steemit.com because the site has been banned by the government, given the opportunity to leave the zone to give myself a better life, i will gladly take it. By the way, Malta is a very fine place and if major investors will be moving there to chill i really would'nt mind going there.
I love the photography
Cairns looks like a total paradise.
yeah, it pretty much is. The last photo is off the coast and a little island (Green Island) surrounded by the Great barrier reef.
Australia is basically the UK transplanted (mostly) into the (mostly dry) tropical climate zone.
I've reads somewhere that there is a bilateral agreement between Finland and Australia granting each other's citizens or legal residents a right to public healtcare under the same conditions as the locals. Is this true?
I think so. About 20-30 years ago it was possible for an English citizen to claim both English and Australian social benefits. It meant a high rate of unemployment in those communities as there was no need to get jobs. Those suburbs are often 'low income' places still.
I met an Australian-Finnish couple on a train some years ago. The guy was a Finn who had emigrated to Australia 40 years ago. His wife was Australian. They told me that (some) civil servants get a six month paid holiday every five years or so. This is a legacy of the colonial period when traveling to Australia was like interplanetary travel. It was, however, the first time in 40 years the husband visited his country of origin. He was so uncomfortable speaking Finnish that he and I continued our conversation in English after his wife left the restaurant car.
Actually, I don't think tax of a thing would be problem to crypto currency since it is not a business organised in a particular nation. Government has nothing to do with this system and won't be able to influence it in any way since crypto doesn't belong to any firm or individual person, it is decentralized enough to think of, though I don't know much about how this crypto works.
You are absolutely right, crypto currency could not be link with any business nor organisation. Who are the government going to meet and collect taxes? I still don't understand.
Nearly all countries already have tax laws that cover it. Governments don't care if they have nothing to do with it which is why there are import duties on different items.
I understand, but it is still different compared to established firm in the country or what do you think?
Different doesn't mean they don't want a piece of it.
Him, you are absolutely right, I agree with you
Hi Taraz. You know my thoughts on his one. Bank where you get the tax breaks and benefits. It is not just your crypto currencies but it would affect your steem account. If you are successful on here and want to take some profits from time to time you will need to declare it. Malta has taken a jump on the other countries by offering no tax on Crypto's and stocks. I am sure Binance got a sweet deal as well for moving their HQ there. There was talk of linking the local banks to the exchange so easy for deposits and withdrawls. Other companies will follow their lead. Good time to buy property in Malta as it will see an explosion.
As much as I try to imagine how the control could come and the truth I can not imagine, since one of the strengths of the cryptocurrency is the decentralization, the free ease of mobilization ... If you know how it would be in this case I would love it help me with that friend!
Until you can untraceably buy your groceries and purchase from the pharmacy or visit the doctor with it reliably, it is going to be hard to hide.
Interesting post. Surely provides enough to think about. Would I like to live in Malta and bank there, I have listened to a guy I know who's brother in law owns two guest houses there and he says living is great so yes I have looked at properties there for development.
Why shouldn't there be ways around the current tax misuses by most governments around the world. I would mind giving the the tax money if they didn't abuse it the way they do. I hope that more options become available and soon.
Blockchains are going to make this part interesting ;) Upvote to approve a war? Direct financing for healthcare?
Hopefully those doing the voting will think on their actions carefully before blindly storming in, but interesting yes, for sure.
Very good afternoon read @tarazkp !
Certainly makes you think about crypto and blockchains in general. All this is very new and there is still a lot of room for improvement. At this point it is smash and grab job before everything sort of gets under some form of control.
Unfortunately, since we aren't very good at self.governance, the control will come from those already with the mechanisms in place. Governments and banks.
Those nations really have a golden opportunity right now thanks to crypto boom, it will be interesting to see which ones are smart enough to offer good conditions, there are a lot of people in the world that for some reason love high taxes.
This would be totally unacceptable mate, too extreme I think. Every person that knows the importance of freedom, even if he is not a crypto holder, wouldn't support something like that.
I hope something like that happens, "Crypto Island" would be a cool name :)
In some places, governments don't care if people support or not.
The, 'Where all your fantasies come true' part is going to get weird.