The Bitcoin, like any other cryptocurrency, is the promising, and most importantly, the profitable alternative to traditional offshore; in addition, digital currencies may effectively complement their capacities.
So, the advantages of cryptocurrencies include:
- decentralization to prevent the impact on the virtual money of governments or any onerned parties;
- rate of transfer – it is several times higher than the same indicator of bank transnational transfers of assets;
- low fees to execute common operations, which include transfers, or exchange
However, you should also know that the right choice of jurisdiction is the key issue when starting a business with bitcoin as a means of payment.
The point is that the legal status of cryptocurrency differs from country to country to the radical extent. So, in countries with the advanced legislation, persons are allowed to operate the digital money in any possible way. But in most jurisdictions operations are limited or prohibited.
Besides, the cryptocurrency environment is unstable and can change at any time in certain countries. A striking example is Russia. The country misses the legal framework, the officials fail to agree on the conclusion on bitcoin and all other digital money. As a result, cryptocurrency businessmen may expect anything that is not beneficial to do business.
Where bitcoin is allowed
The most favourable situation for cryptocurrency is in:
- The North America, namely, the United States and Canada;
- Western Europe;
Thus, the North America is deemed to be an ideal terrain not only for the entrepreneurship but also for the blockchain-based technology development. In the US, bitcoin is traded almost at all well-known exchanges.
In the Western Europe, many countries may be the example, including the United Kingdom, Switzerland, Germany, where the cryptocurrency is considered foreign or private currency, that is, it is equated to the dollar and other money. This indicates that business representatives are able to involve in any operations required.
Recently, Estonia promotes itself with its loyal law regarding the cryptocurrency that allows doing business under comfortable conditions.
The Australian and Japanese laws make it possible to do business in the cryptobusiness industry, and to settle in the digital currency, carry out any other operations. The only drawback is the need for licensing. The same procedure is required in Singapore.
But one should note that cryptocurrency operations are not limited with laws of all countries and owners of companies have to pay taxes. Whereby in many situations, it’s hard to define them as moderately sized since they exceed the third of the income.
If such costs are unacceptable, seek for other solutions. They are right here. For example, there are quite loyal countries to operate the bitcoin and other currencies and at the same time they pose low taxation. Thus, in Bulgaria 10% of the income, not more, have to be paid. When mining is the core activity, consider Sweden. There is no need to open a company to mine the cryptocurrency, as the laws specify it as the working practice not the business, which is helpful to save on taxes, licensing.
Where bitcoin is not legalized
Opportunities to do business are limited in countries referring to the” gray zone” being the jurisdiction with no legislation to regulate this industry, but at the same time the government and the public opinion to bitcoin are quite loyal. Among them, there are quite respectable countries like France, Belgium, where almost any operations are allowed and no taxes are paid.
But there are material disadvantages, though, called the “mirror” factors:
- the lack of legislative norms that may result in all and any sorts of difficulties, inadequate actions of officials, law enforcement officers and even courts, that is, the stability in activities is not guaranteed by anyone;
- the legal framework will come into force over the next few years which will result in introduction of the tax system, and the need of license
In previous cases, restrictions for doing business are associated with the lack of the regulatory legislation, but there are countries where bitcoin is legalized and at the same time certain bitcoin operations are prohibited.
So, it is prohibited to do a large cryptocurrency business in China. It is banned sine large specialized exchange houses are deeply involved in various frauds. These are the resons of restrictions in the South Korea, Saudi Arabia and some other jurisdictions.
Ban on operations
Bitcoin is banned in such countries as Bangladesh, Vietnam, Kyrgyzstan, Ecuador, Thailand. In some of them, positive changes are expected in the nearest future which is not anticipated from the South Korea.
Experts of the Private Financial Services company will help you to address any questions and details.