Crypto-business in Nevis
When it comes to jurisdictions with well-thought-out laws for the crypto business, the Caribbean is a common place to look. Countries in this geographic region welcome Bitcoin and do not discourage economic activity based on blockchain technology. And speaking about these countries, many see the crypto business in Nevis as the best option.
The advantages of Nevis for crypto-businesses
The island has a Virtual Assets Act that governs crypto business registration and requirements. Local laws allow initial coin offerings (ICOs) to be launched. In other words, tokenizing your operations and opening crypto exchanges is possible. A cryptocurrency license allows you to legally work with digital assets belonging to you or other users.
Other advantages of Nevis include:
- Economic and political stability.
- Reliability of the local currency.
- Active support of crypto business by the authorities.
- Strong asset protection.
- No income tax and no capital gains tax.
- All potential taxes associated with cryptocurrencies do not apply if the company is registered as an LLC or multipurpose trust.
- A reliable internet connection helps ensure the business runs smoothly.
Nevis and digital assets
Several years ago, the country joined the Eastern Caribbean Central Bank (ECCB) pilot program that is exploring the possibility to use Bitcoins as fiat currency. The program aims to provide a secure and reliable blockchain-based digital financial system.
The digital currency of the Caribbean region
The ECCB has launched a digital version of the Eastern Caribbean dollar known as DCash. It has become one of the official currencies in the Caribbean region, including Nevis. However, it is officially accepted for payment, transactions, etc. It is important to understand that DCash is not a cryptocurrency and cannot be mined as Bitcoin.
Bitcoin and Citizenship for Investment
The Nevis government is considering introducing Bitcoin Cash and making it a real means of payment. This intention was expressed by Prime Minister Terrence Drew on November 12, 2022.
For now, Bitcoin has no legal status and cannot be used as an investment for citizenship. Admittedly, no one prevents an applicant from exchanging cryptocurrency for fiat money and investing it in Nevis. The amount varies:
- $15,000 if the money is invested in SFG, which contributes to the economic development of St. Kitts and Nevis.
- $200,000 is an investment in approved real estate.
- $400,000 is a contribution paid directly to the government treasury.
Nevis Virtual Assets Act
In 2020 Nevis passed the Virtual Assets Act, which legalized cryptocurrency trading. Entrepreneurs were given clear conditions that must be met to start a cryptocurrency company in Nevis. Among other things, the law spelled out provisions for collecting information about each virtual service provider.
The Virtual Assets Act allows Nevis companies to engage in such activities:
- Exchange one cryptocurrency for another and fiat money.
- Transfer virtual assets to another user.
- Store cryptocurrency in special wallets ensuring its safety.
- Provide financial services related to issuing, selling, and exchanging digital assets.
The requirements for securities, which are associated with virtual assets, have changed.
How to get a cryptolicense
To get a crypto license, you must register a company, then apply to the regulator, where you must specify the following:
- All data about your business, including a description of virtual assets, their characteristics, and functionality;
- Financial information about the owners of the business, including financial statements;
- Details about the professional qualification of employees and their experience with crypto assets;
- The list of the countries where the business is to be conducted;
Cybersecurity is a vital aspect. The owner of the crypto business must specify how crypto assets and personal data will be protected.
How to incorporate a crypto business in Nevis
To register a crypto business in Nevis in 2023, contact IT-OFFSHORE experts.