Today there are many different cryptocurrencies (more than 2 thousand). Most exchanges use blue chip cryptocurrencies for trading because they have proven good capitalization and trust among crypto enthusiasts. You should choose the proper jurisdiction and get a license to work with such assets. On the site https://www.cryptolicense.pro, you can find more information about the crypto industry regulation in different countries and how to get a work permit.
What are blue-chip cryptocurrencies?
This term comes from poker, where blue chips are the most valuable. For the first time, this term was used to refer to securities back in 1920, and today this applies not only to protect but also to cryptocurrencies.
In essence, blue chips are assets that have stood the test of time. They are reliable, valuable, and well-established. In ordinary life, this term covers the shares of giants such as Coca-Cola, Walmart, Microsoft, Visa, McDonald’s, Pepsi, and others.
As for cryptocurrencies, the list of assets that fall under this definition includes the following:
- BTC – the first cryptocurrency with the highest market capitalization, therefore, has earned considerable trust from crypto enthusiasts. Even people who have never been interested in the cryptocurrency market know about bitcoin.
- ETH – The second largest cryptocurrency is hugely popular due to its excellent smart contracts. It has an enormous capitalization. A considerable number of people around the world use this to buy NFTs.
- XRP – many consider this asset to be a semi-blue chip. It was created back in 2012 as a payment system. Today it is the 6th largest cryptocurrency with a trading volume of over $25 billion.
Thus, blue-chip cryptocurrencies are those assets that are trusted by a vast number of people around the world.
Is it worth investing in such assets?
The crypto industry is associated with a lot of risks. You may have heard about the collapse of Luna. However, suppose you want to invest in cryptocurrencies. In that case, it is better to prefer blue-chip assets since their level of capitalization is so significant that it allows you to minimize risks as much as possible. The main thing is to be patient until the crypto winter ends.
If you want to open a crypto business, it will be good if it is based on such assets because this will allow you to attract many crypto enthusiasts and reduce many risks.
From which countries is it better to open a crypto business?
The crypto industry appeared relatively recently, so not all countries have developed rules to regulate it. Today we want to tell you a few words about the countries where it is profitable to get a work permit because your organization can develop logically and efficiently.
Lithuania
This country was one of the first in the EU to regulate the crypto industry. Initially, this did not set complex requirements for crypto organizations; however, they have recently been tightened up as the country’s government seeks to protect its residents from fraud, money laundering, and financial terrorism. Today, this jurisdiction establishes the following requirements:
- Authorized capital from 125 thousand euros;
- Compliance with KYC/AML policy;
- The organization must have a local director and an anti-money laundering specialist;
- None of the team members must have a criminal record;
- Thoughtful business plan.
This jurisdiction has a large number of advantages. A reasonably simple taxation system operates here; the corporate tax is only 15%. In addition, operations to exchange crypto assets for other crypto assets are not subject to VAT.
Another advantage of this country is getting a work permit in the shortest possible time. The licensing process will take only a month if you prepare all the documents in advance.
Poland
This country has developed regulations relatively recently but has achieved excellent results. Here you can make anonymous transactions for up to a thousand euros.
The process of obtaining a work permit here is quite simple, and you need to complete all 3 steps:
- Register an organization;
- Get PESEL;
- Apply.
PESEL is a unique tax number.
You can submit all documents remotely, so you do not need to fly to this country. If you are a foreigner, all documents must be submitted in two versions – copies of the originals certified by a lawyer and translation into Polish under an apostille.
This country provides tax incentives for small businesses, which is very popular with startup owners.
Estonia
This country was part of the USSR and in a very short period of time was able to achieve excellent results in the economic sector. On the second floor about the support of the IT industry. Today, the country continues this course and establishes relatively simple rules for regulating cryptocurrencies.
Among the main requirements for applicants are the following:
- The organization must be registered in that jurisdiction;
- Authorized capital of only 12 thousand euros;
- Good business plan;
- The director and anti-money laundering specialist must have citizenship in this country.
This country has the most straightforward tax rules. Crypto organizations have to pay 20% of their profits, and no other payments are provided here, significantly simplifying tax reporting.
You can apply for company registration entirely remotely and conduct your business from anywhere in the world. Still, at the same time, you must have a local office where the director and money laundering prevention specialists will work.
USA
It is a large country with a fairly complex system. There are federal laws here, but each state can interpret them differently. Thus, regulating the crypto industry and taxation here depends on which state you choose.
However, working in this country has a considerable number of advantages. Many crypto enthusiasts live here, so it will be much easier for you to attract customers.
It is pretty challenging to understand the rules of regulation of the crypto industry here, so you need to seek help from the specialists of our company immediately. They will study your company’s activities and help you choose the staff that will be ideal for you.
Great Britain
This country is interested in the development of the crypto industry. Therefore, it sets the most simple rules for regulating this. So, the presence of a license here is advisory, but in any case, you need to register and pay taxes. By the way, the level of taxes here is shallow – about 13%. In addition, there are convenient tools that help crypto organizations resolve many legal issues quickly and easily.
In the end
As you can see, there are many countries where you can get a work permit, and each has unique rules for regulating the crypto industry and taxation. If you need legal advice on this matter, you can contact our experts for help, and they will tell you which jurisdiction is best for you, given the characteristics of your organization.
