The level of freedoms that the US has provides an argument for the country to be the most cryptomone-friendly place, although Puerto Rico also has its benefits.
As a thriving industry less than 13 years old, crypto currencies have seen their fair share of crackdowns and regulatory changes, especially in the United States. Jake Yocom-Piatt, co-founder of Decred, sees the nation as the most cryptomone-friendly.
„Kryptom currencies are treated as personal property in most jurisdictions, so their tax treatment is relatively uniform,“ said Yocom-Piatt. He continued:
„Kryptomone transactions are a form of expression, so states where freedom of expression is protected are those that restrict kryptomone the least. Although the United States currently suffers from many substantial socio-political problems, the combination of its freedom of expression with protections against the forced disclosure of password phrases makes it the most favourable country in the world for cryptomonies“.
Since 2017, the crypto coin industry has suffered a series of regulatory actions from U.S. regulators, from lawsuits over initial coin offerings to charges against companies like BitMEX. The U.S. Department of Justice has also recently implemented regulatory parameters for crypto coins.
Earlier this year, U.S. Representative Tom Emmer expressed fears that the country would undermine innovative progress amidst its legal processes and requirements. However, Yocom-Piatt’s view of the US as the most favourable country for cryptomonies looks at the situation from a different angle, indicating the country’s freedoms rather than its restrictions.
Meanwhile, Rob Viglione, co-founder and CEO of Horizen, told Cointelegraph that he sees Puerto Rico as the best place for cryptomonies, although he answered the question in light of the best location for cryptomonies for people in the US. „I am going to nominate a country that is not always recognized as a country and that is very underrated as a cryptomone hotspot: Puerto Rico! he added:
„For Americans, Puerto Rico is by far the most cryptomone-friendly jurisdiction when you consider the special tax decrees, such as Laws 20 or 22, that make effective tax rates very low.“
The U.S. Internal Revenue Service published a guide on taxing digital assets for its citizens in 2019, but it only brought up more questions. There have also been other updates, including changes to cryptomoney tax forms.