Many ‘Kings’ of Bitcoin Cs Move Here, Why?

Jakarta, CNBC IndonesiaCurrently, many players in the cryptocurrency industry are moving to Puerto Rico. The area that is still under the sovereignty of the United States (US) is said to have a number of advantages for crypto traders.

Puerto Rico has a major tax deduction policy for those who spend at least 183 days on the island each year. Even more special is obtained by US passport holders, where they do not have to pay taxes on capital gain if certain qualifications are met.

This incentive encourages market participants to move and bring their children with them. One of them is crypto entrepreneur and investor from New York, David Johnston.

“That’s where all my friends are. I don’t have a single friend left in New York, and maybe the pandemic has accelerated this, but each and every one of them has moved to Puerto Rico,” he told CNBC International, Sunday (17/1/2022).

Right now, he said his entire office building was filled with companies start-up and crypto. The reason is, in addition to taxes for crypto, Puerto Rico also only applies a 4% tax for companies and businesses.

“Pantera Capital (a crypto fund) is on the fifth floor and then there’s the co-working space on the sixth floor. My company, DLTx, we took over the eighth floor, and took over the twelfth floor. It’s all happened in the last 12 months, ” he concluded again.

Meanwhile, lawyer and tax consultant Giovanni Mendez also confirmed that requests to move to Puerto Rico have soared in recent times. This is driven by the pandemic that has made people to play crypto more and more.

“I really didn’t expect a lot of people to move with everything that’s going on with the pandemic, but instead, a lot of people actually just decided to pull the trigger,” Mendez said. “That is certainly coupled with an increase in the value of crypto assets.”

Besides Johnston, several world famous figures are also known to be concentrating their activities there. Facebook whistleblower Frances Haugen, who told New York Times that he bought crypto at the right time, moving from San Francisco to Puerto Rico last year.

Then there’s YouTube star and NFT investor Logan Paul who decided to set up shop there as crypto billionaire Brock Pierce previously did.

[Gambas:Video CNBC]



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