Jersey and Guernsey Provides Tax Haven For Crypto Investors

Defying the ongoing cryptocurrency winter, some countries especially UK-linked entities recognized to be tax havens are enticing more crypto firms with their friendly conditions. 

France’s neighboring countries, Jersey and Guernsey are two nations that are making efforts to attract more crypto investment and blockchain investors. Placing their focus on financial technology firms, crypto, and blockchain, Jersey and Guernsey are offering favorable tax laws. 

Specifically, they are presenting investors with better enticing incentives to transfer their money from some traditional tax havens. This string of British territories also known as Channel Island is competing with the likes of Portugal, Cayman Island, and Bermuda which already offer convenient tax rates and regulations. 

Interestingly, both Jersey and Guernsey do not impose capital gains, nor do they impose inheritance tax on properties. 

Therefore, this makes them good grounds for investors. Also, there is no value-added tax (VAT) or withholding tax, in fact, the general rate of tax payable in Guernsey is zero. Prior to the time that the Bitcoin (BTC) ecosystem became mainstream, they have both been clamoring for the booming assets class.

Crypto Adoption In the UK Channel Island

Presently, the United Kingdom Channel Island nations are not deterred by the plummeting BTC market conditions nor the crash of many crypto markets owing to the financial crisis. 

Before now, Jersey’s regulator, Jersey Financial Services Commission (JFSC) launched the world’s first regulated Bitcoin investment fund, GABI Plc. Also, Jersey was part of the few countries that created a framework for the regulation of virtual currencies under its jurisdiction. This went ahead to portray and establish Jersey as a crypto-friendly nation. 

Guernsey is not any different from the former. Although it had earlier not established its stance on crypto, it has no specific laws against cryptocurrencies or mining-related activities. The country ensures that anti-money laundering schemes and money transmission laws are strictly adhered to. Meanwhile, there are plans to come up with a licensing regime before the end of the year.

Three years ago. Binance launched Binance Jersey which was their first GBP/EURO FIAT exchange. Furthermore, Jersey has attracted CoinShare which has $3 billion in assets under management (AUM). Ultimately, Channel Island is luring more crypto firms from their former crypto tax havens.