The world’s Digital landscape is changing right in front of our eyes. Companies are stepping away from the mundane office setup and moving towards the cool vibes of island life. Currently, Saint Vincent and the Grenadines, located in the Caribbean, are taking big strides into the crypto world and shaping themselves to become the New Digital Paradise.
The country is building what it claims to be the world’s first Bitcoin-enabled community. “One Bequia,” a technology community with 39 luxury villas. These properties and amenities can be purchased using Bitcoin (BTC). This move sets up Saint Vincent and the Grenadines to be a major player in this new digital landscape. Changing what we know as standard living and traded in for a glimpse into the future.
Another country breaking down the proverbial “crypto wall” seems to be The Bahamas. The 700 Bahamian islands and cays are surrounded by sun, sand, and sea. Gone are the days of adventuring pirates that would seek out the Bahamian islands as a haven while roaming the seas. The only thing to rival the crystal-clear Bahamian waters is their crystal-clear crypto regulations.
The Bahamas’ rise in the digital arena should come to us as no surprise, as in 2020 the Bahamas became the first country to launch a nationwide central bank digital currency, the “Sand Dollar.” Following its introduction, Bahamian businesses have not only started accepting Sand Dollar on a small scale, but Mastercard Inc. (NYSE: MA) also launched the world’s first CBDC-linked card in the country that allows individuals to use Sand Dollar for payments in Bahamian dollars (BSD).
Companies have been really excited about the clarity that the Bahamian government has given. As opposed to several jurisdictions that haven’t been giving that clarity, One of the selling points for The Bahamas is its regulatory regime for derivatives; crypto companies see that as a must-have: a regime for crypto futures. If that’s not in place, you don’t have a setup for the majority of the volume in the world.
The Bahamas and Gibraltar are the only two countries to have regulations for cryptocurrency derivatives at present. Clear crypto regulations that are easy to comply with are rare, and so are the choices for crypto businesses to set up their base. The Bahamas is also a tax haven; its citizens do not have to pay taxes on income, capital gains or wealth, and neither do the companies that operate there, saving them a significant chunk in taxes.
Digital companies are running to the Caribbean for more than their sun, sand, and sea. They are looking for regulatory advantages in these Caribbean nations, most of which do not have any direct taxation. While other first-world countries continue to debate the crypto world, some crypto businesses are finding it easier to incorporate or set up headquarters in these tropical islands, which to many it’s like paradise.
With the current trend of cryptocurrency, you are starting to see countries all around the world begin to restructure their policies and outlook on the digital and crypto market. For example, El Salvador became the first country in the world to establish Bitcoin (BTC) as legal tender. They also exempt bitcoin profits from any capital gains or income tax. The crypto community is praising it as one of the best crypto tax-free countries.
Many countries have already looked towards legislation regarding crypto taxation and aim to become a financial hub for furthering innovation. Others took the route of offering low-income tax for crypto gains to attract more fintech businesses. The ability to perform crypto transactions with tax, or no tax at all, is a big plus for foreign companies and individuals to relocate their businesses as a way of adapting to this rapidly changing digital world and emerging paradise.