Saint Kitts and Nevis Introduces Virtual Asset Bill and Legalises Crypto Payments
The Federation of Saint Kitts and Nevis has officially legalised digital assets such as bitcoin cash. The island state has passed the Virtual Asset Bill 2020 to regulate the crypto flow for local residents and enterprises. A similar bill was passed in Antigua back in 2018.
According to the Federation’s bill, legal entities and individuals can now:
- Exchange virtual assets into fiat money and vice versa
- Exchange between various virtual assets
- Transfer virtual assets
- Perform safekeeping or administration of virtual assets or instruments pegged to virtual assets
Saint Kitts and Nevis attracts many affluent individuals looking for dual citizenship. The island’s Citizenship by Investment Programme (CIP) was launched in 1984. It unlocks citizenship through property purchase or donation.
The country provides a relaxed tax regime. If you hold an asset for over a year, you are not obliged to pay any capital gains tax. Otherwise, you are subject to a reasonable 20% tax.
As for virtual currency payments, they serve as a cost-effective alternative to banking fees. With bitcoin and other cryptos, people can make payments worldwide without bearing any heavy costs imposed by the traditional banking system.
For example, if you purchase an imported Japanese car to use in St. Kitts and Nevis, you can pay in crypto to the provider in Japan with neglectable commissions - instead of making a long and costly wire transfer through a bank.
The Federation’s guidelines on capital gains also cover inheritance and gifts. With lenient capital gains taxes and the recent crypto bill, Saint Kitts and Nevis is poised to attract even more investors looking to secure a second citizenship in the Caribbean.
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