During the almost 13 years since the burgeoning industry released, cryptocurrency has experienced its fair share of regulatory crackdowns and changes, in particular in the United States. Co-founder of Decred Jake Yocom-Piatt however sees the nation as the most crypto-friendly.
"Cryptocurrencies are treated as personal property in most jurisdictions, so their tax treatment is relatively uniform," Yocom-Piatt said. He continued:
"Cryptocurrency transactions are a form of speech, so states where free speech is protected are the least likely to restrict cryptocurrencies. While the U.S. currently suffers from many substantial sociopolitical problems, the combination of its freedom of speech with protections against forced disclosure of passphrases makes it the most crypto-friendly country in the world."
From 2017 on, the crypto industry has suffered a couple of regulatory actions from U.S. regulators, from initial coin offering lawsuits to charges against companies such as BitMEX. Recently the nation’s Department of Justice has also released crypto regulatory parameters.
U.S. Representative Tom Emmer, earlier this year, showed concerns on the U.S. hurting innovative progress amid its legal processes and requirements. But Yocom-Piatt takes a different perspective, regarding the U.S. as the most crypto-friendly country and noting the country's freedoms rather that its restrictions.
At meantime, Rob Viglione, co-founder and CEO of Horizon, noted that he sees Puerto Rico as the top place for crypto, despite his answer about the best crypto location for U.S. persons. "I'm going to nominate a country that’s not always recognized as a country and is way underrated as a crypto hotspot: Puerto Rico!" He added:
"For Americans, Puerto Rico is, by far, the most crypto-friendly jurisdiction when you consider special tax decrees, like Acts 20 or 22, which drive effective tax rates way down."
The U.S. Internal Revenue Services released guidance on digital asset taxation for its citizens in 2019, although it brought further questions. Other updates, covering changes to crypto tax reporting forms, have also occurred.
One other complicated component of U.S. crypto taxation: Crypto is not regarded as property, so users must report every trade as a gain or loss, different from like-kind exemptions. Apart from tax aspects, Puerto Rico hosts a strong cryptocurrency scene, as per Viglione:
"Saving on taxes is great, but what really makes Puerto Rico stand out is the explosion of the most vibrant crypto community in the world because of it. Many of the industry's leaders, entrepreneurs, and developers have chosen Puerto Rico as their new home."
As founder and CEO of MyEtherWallet, Kosala Hemachandra also recently gave his take on what he sees as the best region for crypto. Hemachandra believed people’s views on a good crypto atmosphere can be subjective. He also mentioned the importance of a global crypto presence.