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Managing Associate at Bedell Cristin Cayman Partnership .
While Cayman Islands does not allow crypto for RCBI purposes , “ generally , we advise clients it is better to convert crypto to fiat currency in the exchanges and then transfer that to Cayman ( noting that they will need to show how they came about such funds by providing a history of the associated crypto transactions ,” he said .
“ Currently , it cannot be used in governmental transactions , such as to pay application or approval fees for Certificates of Permanent Residence or Residency Certificates .”
COUNTRIES WHERE CRYPTO IS LEGAL , BUT NOT FOR INVESTMENT IMMIGRATION
There are quite a few countries that don ’ t allow cryptocurrency for investment immigration even though the digital currency itself is not banned .
“ Although cryptocurrencies are legal in the Netherlands , they cannot be used to get residency via investment ,” said Dutch immigration lawyer Jeroen Maas , who is a partner at Delissen Martens Advocaat .
Italy Immigration Advisor Marco Mazzeschi , who is the founder of Mazzeschi S . R . L ., said Italian law regulates all activities linked to the circulation of cryptocurrencies .
“ Any activity related to the purchase and sale of cryptocurrencies is taxed in Italy , but using cryptocurrency as a form of payment for a product or service is exempt from the financial transaction tax ,” he said .
However , it cannot be used to get a golden visa or an investor visa in Italy .
“ Currently , there is no role played by cryptocurrency in the Italian Investor visa program , no one can get a visa through an investment like that ,” said Alessia Ajelli , who is an attorney at LCA Studio Legale .
Canadian immigration consultant Julien Tétrault , who is the President of JTH Lawyers Inc ., said that while cryptocurrency is not illegal or banned in Canada , it cannot be used to get permanent residency in Canada , because programs require that investments are all in Canadian dollars .
In fact , even if one used cryptocurrency to buy Canadian dollars for investment immigration purposes , it “ would most likely trigger interrogations from Canadian Immigration authorities regarding the source of funds .”
Portugal has a similar situation .
“ Unfortunately , currently , cryptocurrency cannot be used to invest in Portugal in the Golden Visa process ,” said Portugal Immigration Consultant Inês Azevedo , who is the founder of the Azevedo Legal firm . This despite the fact that cryptocurrencies have a very favorable tax regime in Portugal and tax residents don ’ t even have to pay capital gain taxes on crypto holdings .
DIFFICULTY IN TRACKING DIGITAL CURRENCIES
According to migration agent James Hall , who is the principal agent and managing director of ANZ Migration , “ cryptocurrency is legal in Australia and there are various laws introduced in an attempt to regulate .” However , Mark Welch , who is the founder of Australian law firm Cargil Migration , said that based on his recent conversations with the Australian Department of Home Affairs ( DHA ) officials , he can confirm that digital currencies are excluded as a source of funds or assets , and therefore , could not be used for investment immigration .
“ The DHA is unable to track digital currencies and , therefore , verify that the funds are lawful . Any funds which cannot be confirmed as lawful , can ’ t be considered in the Business Innovation and Investment visas ,” Welch said .
This situation is similar in New Zealand .
“ The New Zealand Financial Markets Authority considers that cryptocurrencies are high risk and volatile , can rise and fall very quickly , and would not be in a position to verify their lawfulness ,” said immigration attorney Venkateswaran Krishnan . “ Therefore , cryptocurrency is not considered an eligible investment by Immigration New Zealand for investment migration purposes and also crypto currency is not allowed to be used as a source of funds or personal assets .”
OTHER COUNTRIES LAGGING BEHIND IN THE CRYPTO RACE
Eirini Christodoulou , who is a senior associate lawyer at CA Advocates , Pourgoura & Aspri LLC , said there is no legal framework regulating blockchain and cryptocurrency in Cyprus .
“ Cryptocurrency and virtual currency cannot be used for the obtaining of the golden visa or investors ’ visa in Cyprus as it lacks legal status as a currency and also it lacks guarantee for legal obligation to reimburse at face value financial transactions ,” Christodoulou said .
Paris Hadjipanayis , who is a Partner at Parparinos & Hadjipanayis LLC , agreed .
“ While there is no specific legal framework currently in Cyprus for cryptos , it is not forbidden or banned ,” Hadjipanayis said . “ It may not be used to obtain citizenship status or tax residence directly as all payments must be in fiat currencies … However , companies can freely use cryptos to form a contract with an employee provided there is full acceptance on such volatile payments , however all contributions to the Social Insurances will be made in fiat currency on the given salary stated in an employee ’ s contract .”