ICOs have made things a lot easier for startups in the cryptocurrency space to get money for development. In fact, the model proved so popular and so easy that it was quickly filled up with scams and frauds. That all changed when regulators caught wind of what was happening and now it is not just a matter of what you have, but also where you launch your ICO or your STO that will influence how much money you are able to raise. That has also lead to ICOs becoming a dead end in certain countries while flourishing in others.
The following countries do not just offer robust regulations that give confidence to investors, but also include a variety of other factors that many startups would do well to look into. Particularly, when they are deciding where they would like to base their activities. Taxation is an important point, and always will be. If you lose half your initial capital to a country that only sees the funds raised as income, then it hardly helps you move forward with development.
Set up costs are another important avenue to cover, as is the number of skilled workers in the country you are launching. While you may have an international team – anyone would need to be highly educated. While many countries do not have a problem with an educated workforce, many countries do have a problem holding on to the best – and for a startup, you need the best to want to stay.
Malta's view on ICOs is pretty passive. As long as your token is of the utility variety, the authorities will basically leave you alone. Tokens that are not utility tokens have clear guidelines that are followed according to the law of the land, which some people might find stifling if they were in any other country.
Malta is known for its quick and efficient adoption of cryptocurrencies and blockchain technology, so the laws were made to promote, not stifle, innovation. There is also the tax refund that they offer as a package to attract startups to the country. This would allow the normal tax of 35% to go down to basically 0%. Depending on the nature of the coin, it could be as high as 10%, and even 5% but the fact of the matter is that taxes are a good thing in Malta.
The Swiss canton of Zug is rightly called Crypto Valley. The Ethereum Foundation is based there, and the canton is extremely friendly to crypto startups. The law of the land does require some hoops to launch an ICO or an STO, but they have taken a more lenient stance as they want to encourage ever more crypto startups in the country. It might surprise many to learn that startup costs may be remitted in both bitcoin and in ether, making things much easier for any new crypto startup.
Singapore is perhaps one of the best places to open a crypto related business, never mind just the benefits for ICOs. So long as the token is not a security, the legal requirements are basically minimal. While STOs are securities, the laws are made to be crypto-friendly so are not as stringent as other jurisdictions.
The taxes are superb with 17% corporate tax and no capital gains taxes at all. That means any increase in your cryptocurrency will not see it lose a portion to capital gains... something very important to consider when looking to launch an ICO.
It's no wonder that Singapore crypto companies are thriving with a government that is so supportive of the crypto ecosystem.
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