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Puerto Rico markets its “Tax haven” to attract cryptocurrency investors

Mohan Pratap



Puerto Rico accepts Crypto
Source: || Puerto Rico after Hurricane Maria

Puerto Rico’s Governor, Ricardo Rossello in a move to attract crypto investors and holders to live in its land made an open call to everybody to come and take advantage of the tax haven. Puerto Rico recently got devastated by hurricanes Maria and Irma and is trying to recover slowly and an influx of money will definitely help the progress.

All of its power grid was destroyed by the hurricane and 20% of its population still does not have electricity. The governor sees cryptocurrency as a means to bring Puerto Rico out its situation. The country best known for its tax exemptions is currently suffering from a financial crisis.

So why crypto investors?

Cryptocurrency traders are well known to evade tax on their cryptocurrencies so to cash in on this situation, the governor is making attempts to attract them. The “Tax Haven” attraction did not fade away despite the hurricane destruction and to promote this they arranged a conference by the name “Puerto Crypto” from March 11th to 16th of this year.

IRS considers cryptocurrency as property and investors are forced to pay “Capital Gains” tax it. Puerto Rico is an attractive place for crypto investors as it has an exemption in its Internal Revenue Code, called Act 22, which allows non-residents of Puerto Rico to pay no taxes on their long-term capital gains.

IRS is going hard on those evading tax on cryptocurrencies. In an investigation into the users of Coinbase, it found that out of the total 6 million users only 600 to 800 users reported their cryptocurrency tax gains. There was recent research done by Credit Karma which stated that fewer Americans trading in cryptocurrencies were paying taxes.

Mr. Ricardo was positive about cryptocurrencies and says,

“Whoever wants to come to Puerto Rico and enjoy the benefits of Puerto Rico, come to Puerto Rico”

He was also unsure about the dangers of illicit activities using cryptocurrencies, he continues,

“Blockchain is a phenomenal technology; a game changer. Cryptocurrency is sort of an application of that. I am concerned with some of the reports on how it is being used.”

Carlos Martínez, cryptocurrency investor from Santurce spoke to AMBCrypto and says,

“We are open to development and to trade, if the crypto community can help our community to improve then we accept it. We have suffered enough now it’s time for some change. There is skepticism around this [cryptocurrencies] but if it helps make your home better everyone accepts it”

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Mohan Pratap is a contributing News writer at AMBCrypto. He is an Engineering graduate with an acute curiosity to unravel Blockchain and technology-related stories. Mohan currently does not hold any value in any cryptocurrency or its projects.

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Bitcoin’s [BTC] security is 100 times more than that of Bitcoin Cash’s [BCH], says Litecoin creator





Bitcoin's [BTC] security is more than a 100 times than that of Bitcoin Cash [BCH], says Litecoin creator
Source: Unsplash

Charlie Lee, Creator of Litecoin [LTC] and Managing Director of Litecoin Foundation, spoke about projects that allocate mining rewards to developers, in an interview with Laura Shin for Unchained Podcast. He also opined about whether Litecoin’s vision still remained the same or not.

On projects that allocate a percentage of the block reward to developers, Lee stated that it was “okay” as long as the project developers were transparent on this subject, adding that in some cases, this was “needed”. He further stated that it was hard to find developers for Litecoin since, there were not enough funds to pay these developers.

[…] we work on raising money and using money to pay for developers but unlike ICOs or other projects we just don’t have millions sitting from selling our ICO tokens to fund these developers. So, yeah I think projects that do that it’s kind of needed […]”

However, Lee stated that for cryptocurrencies such as Bitcoin and Litecoin that really want to become decentralized money, there cannot be any centralized actions like using mining rewards to pay developers.

This was followed by Lee speaking about Litecoin’s vision and the coin’s use case. On this, Lee stated that the current vision was still “very similar” to the old one, seeing Litecoin as a complement to Bitcoin. He added that Litecoin’s raison d’être was not to replace Bitcoin, unlike some other coins that claim to be the better version of Bitcoin.

“[…] I think it’s trade-off. So, a lot of people don’t talk about the trade-offs people talk about how they have fees are cheaper […] people in support of Bitcoin Cash constantly talk about how Bitcoin Cash transaction fees are like a hundredth of that of Bitcoin but, you get what you pay for right […]”

He further added that Bitcoin’s “security was more than hundred times” that of Bitcoin Cash, irrespective of the hash rate being more or not. Lee remarked that one cannot “attack Bitcoin,” whereas Bitcoin Cash could be “eas[ily] be attacked,” adding that this factor was very important and also the reason for cheaper fees.

“[…] same for Litecoin alright. Litecoin is cheaper and the security is less than Bitcoin […] so people who actually move lots of money they would want to use Bitcoin and I think that’s fine like Litecoin can compliment Bitcoin perfectly fine […]”

Lee stated that this was the reason he agreed with Lightning Network, arguing that it was good for both Bitcoin and Litecoin. He stated that Lightning not only helps them scale, but also enables cross-chain atomic swaps, allowing people to swap two different coins instantly and easily in a decentralized manner.

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