The Crypto space has garnered a significant amount of attention over the past couple of years. As a result, we have seen laws and regulations being implemented across the globe. What has been even more disturbing is the inconsistency. Laws being passed and then abandoned, only to be replaced by new and ever-changing policies have left many feeling uncertain. When your entire income is reliant upon Crypto, it becomes a problem. Those with full-time jobs are not too impressed by the constant state of change and uncertainty, but it’s not a deal breaker for them. Those reliant upon Crypto as a full-time income are in many cases forced to consider extreme alternatives.
A Tough Call
Unfortunately, sometimes the only option left is to relocate. If the level of taxation and regulation is unfavorable in terms of being able to earn a livable income, one might have to consider the difficult decision to leave “home”. Many are seeing this as an unavoidable next step. Laws and regulations are currently extremely staggered and inconsistent, no matter where you are in the world. Apart from a few locations that choose to look favorably upon the Crypto space, the majority are suffocating citizens via obdurate and sometimes, rather unnecessary laws and restrictions. I think the majority can understand reasonable regulation and taxation. However, moderation is not a term one can use to describe the approach of many governments around the world. There are however a few countries that seem to have handled the “challenge” fairly well, at least for now anyway.
A Thought To Consider
Not only are those who are being heavily restricted leaving, but also those who are now “Crypto Wealthy”. Many OGs are now not only wealthy but generating significant amounts of Crypto every month. If another country has zero Crypto taxation, it’s a bit of a no-brainer to relocate, isn’t it? Those with significant Crypto wealth will obviously seek to protect that wealth. The same can be said of those who are now being “marginalized” via regulations and taxation. They too will seek to protect the little that they have, as well. This is where certain countries are attracting “money”, while others are losing a significant portion of their tax base. It may not be that extreme at these stages, but consider how far this trend could actually extend if governments push “too hard”.
Everything comes down to balance. As I mentioned, the majority can understand and accept reasonable regulation and taxation. They might not necessarily embrace it, but they can understand the need for it. This is where balance plays a key role. Tip the scales too far in the favor of Uncle Sam and you stand the chance of losing more taxpayers, it’s that simple. One can speculate as to the reasons behind Musk’s move to Texas, but a tax cut is definitely one of them, in my opinion. Many praise Buffet and one of his key principles is to find legal ways to reduce your tax bill. If Cryptoneurs can match or better their lifestyles while simultaneously reducing their tax bill, what do you think they are going to do?
At the end of the day, the countries that embrace Crypto stand to benefit from what other countries are losing due to “overreach”. This makes logical sense, but when has greed ever been logical?