Applying for a second passport and new citizenship has become common among cryptocurrency investors recently, especially since Bitcoin has been riding high in the first quarter of the year. This tendency is often associated with numerous benefits one can reap from holding such status, ranging from tax reduction to investment protection to more travel freedom.
Due to the legal status of digital currency worldwide, obtaining citizenship via direct outflows in a specific crypto isn’t feasible, nor should anyone be shocked upon learning this. Most nations leaning on Citizenship by Investment (CBI) programs treat digital currencies as speculative assets, disregarding them as possible, reliable currencies such as EUR, GBP, or USD. Other reasons why obtaining new citizenship through direct investment in crypto is impossible exist. However, those who know how to buy Bitcoin, alongside Ethereum, BNB, or other cryptocurrencies, work to get their second citizenship and passport. They may leverage benefits like those you’ll discover later, all through the means disclosed below.
Reasons why second citizenship tempts many crypto investors
Freedom of travel
Having citizenship in countries where national businesses can use crypto for their offerings allows for visa-free travel opportunities that bring about access to various countries without the money- and time-consuming visa applications. Moreover, beneficiaries can leverage residency programs in countries like Vanuatu and more. Vanuatu is one of the clearest examples you can look to when imagining citizenship in a crypto-supporting state, as it is the first to offer Bitcoin residency. This concept is far from being met in other parts of the world.
This liberty to travel is specifically attractive for entrepreneurs, digital nomads, and investors who prioritize flexibility. Those looking to gain residency or carry out business operations somewhere without dealing with restrictive visa requests or residency quotas find a trustworthy ally in their citizenships, leveraging their crypto possessions in ways they cannot back at home.
Safety and protection
A second passport can be the key to security and stability for those residing in nations where economic uncertainties and geopolitical conflicts threaten their wealth. Numerous countries, such as Portugal, El Salvador, Malta, The Caribbeans, and the British Virgin Islands, offer safe havens for crypto possessors seeking to safeguard their families’ futures and their crypto fortunes.
Having an additional citizenship can protect crypto owners from the perils emerging from rising regulations. Moreover, issues like liquidity, or the incapacity to cash in on crypto assets whenever you see fit, are kissed goodbye. Secondary citizenship enables status owners to enhance their chances of accessing their wealth whenever they want without worrying about charges.
Tax advantages
One of the main motivators behind investors’ submissions for new citizenship is to protect their wealth from devaluing by keeping their assets tax-free. Alternative jurisdictions offer potential incentives and tax privileges. For instance, nations that protect investors through investor-centric tax systems could decrease the taxes applied for capital gains, where crypto integrates perfectly with wealth and corporate profits. This enables entrepreneurs to make the most of their tax liabilities and keep as much as possible from their crypto investment profits.
More investment options
Some nations, like those residing in the Caribbean or those in the entrepreneur’s dream, the European Union, grant citizenship through investment programs through which investors can clear their path to numerous investment opportunities. From business start-ups to real estate, cryptocurrency owners may use their citizen privileges to navigate other markets and join economic growth projects, turning emerging opportunities into profitable endeavors.
Extra privacy
Becoming a citizen of a nation with solid confidentiality laws in place and banks that prioritize the privacy of crypto owners offers a lot of comfort to those who want to keep their capital hidden from prying eyes. There are banking systems that provide the confidentiality and privacy needed so that crypto owners won’t worry about unauthorized access to their data, currencies, and so on.
More business opportunities
Cryptocurrency investors often seek entrepreneurship opportunities, and having dual citizenship opens up such advantages. This status offers entry points into numerous networking opportunities worldwide, allowing them to navigate new markets, attend upscale meetings and conferences, and so on.
Why you can’t buy your second citizenship with crypto
Possessing a great deal of crypto could understandably tempt many into thinking of buying second citizenship this way. However, it’s essential to remember that multiple obstacles prevent crypto owners from getting new citizenship in exchange for their wealth.
Cryptocurrencies are seen as speculative assets and treated as such, even if national currencies back some of them. While one shouldn’t generalize every crypto as they all differ, the one thing they have in common is the entire area of high risks associated with speculative investments that they bring about.
Furthermore, as most nations work with the CBI mechanism, they must meet harsh Anti-Money Laundering (AML) rules. While these regulations vary globally, they all fight against terrorist financing and money laundering through citizenship and other illegal methods. Citizenship submitters are checked up, down, and sideways and put through solid verification processes to determine their source of wealth. Since cryptocurrencies work on blockchain and are pseudonymous, using them would contravene the Anti-Money Laundering regulations.
How can crypto investors obtain a new citizenship?
Direct inflows into cryptocurrency to get second citizenship are unfeasible now and will likely remain this way for the foreseeable future. However, crypto owners have a few other methods through which they can gain this status.
First, through a user-friendly exchange, you can convert your cryptocurrencies into established currencies such as EUR, GBP, USD, and so on. Nevertheless, you need to be aware of the fact that crypto sales may generate costs depending on the taxation regulations in your location, the timeframe since you’ve bought and dropped them, and other prerequisites. Look into your destination’s tax obligations before exchanging crypto into traditional money and into the terms of the exchange used to learn if they’ll additionally withdraw commissions.
Moreover, you can get citizenship in destinations like Dominica, Barbuda, Vanuatu, Antigua, and a few others. They’ve shown massive interest in crypto along the way, and their application and investment processes are usually less strict.
Getting new citizenship presents unmissable advantages, but introducing cryptocurrency into the equation means you’ll be subjected to a few extra requirements.