New-age American investors are becoming increasingly frustrated at the slow pace of the American government’s decision on how it will regulate digital assets. The United States is behind other leading global economies in providing clarity about how it will regulate digital assets, causing a problem for investors.
In March, President Joe Biden signed an executive order telling federal agencies, including the Securities and Exchange Commission, to study the risks and benefits of cryptocurrencies. The order sweeps across government agencies because the US lacks one regulator overseeing the digital assets market that includes cryptocurrencies such as bitcoin and ether, decentralized finance tokens, and non-fungible tokens, or NFTs.
The fragmented regulatory system is one reason officials have moved so slowly and could result in different departments battling for ownership of the project and that can inhibit cooperation.
Many, who believe that digital assets such as bitcoin enable individuals worldwide to find freedom, are now looking to progressive jurisdictions that will allow them to take advantage of these new innovations without authoritarian influence.
A perfect example of such regions is the Caribbean, which has been quite progressive in adopting new technology.
In 2015, the first Caribbean bitcoin exchange was introduced in the region to offer citizens easy access to digital goods. The primary purpose of introducing bitcoin was to provide freedom to the citizens from the service’s low fees for transactions and high cost of money transfer where traditional banking is limited. Since then, the crypto adoption rate has only increased.
Antigua & Barbuda announced the Digital Asset Business Bill in 2020, which aims to promote the use of digital currencies in the country, opening up new avenues for payments.
The Caribbean also launched its own digital currency, known as DCash. DCash is an electronic version of the Caribbean Dollar and a blockchain technology-based currency. DCash was made available for trading goods from the end of March last year. It is available in four island nations including Grenada, St. Lucia, Antigua and Barbuda, and St. Kitts and Nevis.
These Small Island Developing States (SIDS) – a distinct group of states that face unique social, economic and environmental vulnerabilities – have mainly relied on Citizenship by Investment (CBI) to spur growth in their economies.
A number of countries in the Caribbean offer opportunities to obtain citizenship or residency in exchange for a substantial financial contribution to the domestic economy – allowing progressive investors the freedom to obtain alternative citizenship in countries which offer a plethora of other investment opportunities.
Over the last decade or so, the primary motivations amongst CBI participants have been freedom of movement, tax benefits and lifestyle factors, such as better education or civil liberties.
According to the recently published World Citizenship Report, the growing financial and economic uncertainty and government supervision, which previously caused considerable concerns for investors, intensified during the Covid-19 pandemic. In response, many people opted for greater geographic and personal investment diversification as methods to escape increasing government interference.
Alternative citizenship planning firm CS Global Partners saw a 42% increase in interest in investment citizenship from Americans in 2020 compared to the previous year.
What is Citizenship by Investment?
CBI programmes usually offer the opportunity to legally acquire the citizenship of a country in return for a contribution to a government fund of that country or an investment into one of its pre-approved real estate projects. Such programmes confer citizenship status without adding any serious burden onto an investor’s life, provided that they successfully pass all of the due diligence checks required, make a qualifying investment, and submit all the correct documentation.
The benefits of owning a second passport, range from more investing freedoms to better living conditions, and can be had for as little as $100,000.
Digital assets can be a valuable financial tool as a censorship-resistant medium of exchange and with the Caribbean quickly growing to become one of the hotbeds of cryptocurrency innovation globally, it makes sense for astute investors to include these destinations in their portfolios.
CS Global Partners is the world’s leading government advisory and marketing firm, specialising in residency and citizenship by investment solutions. Governments around the globe partner with CS Global Partners, relying on our in-depth expertise about the citizenship by investment market. We work closely with government authorities to create synergies to protect and promote the security of their citizenship by investment programmes and attract prospective applicants through stringent due diligence processes.
Over the years, we have helped countries attract foreign direct investment into their markets, equating to more than half their GDP. We have been expanding our foreign direct investments and further focusing on recommending premium citizenship and residency programmes to our clients.
With our strong reputation, expertise and integrity, CS Global Partners has created a robust community, linking a well-established global business network with investment bankers, lawyers, high-net-worth individuals, and other like-minded professionals. Our objective is to educate markets, create awareness about global citizenship by investment, and ensure that international stakeholders work effectively with these programmes by properly educating their ultra-high net worth and mass affluent clientele about the best RCBI options available.
CS Global Partners holds government mandates to promote and develop citizenship by investment programmes for St Kitts and Nevis and Dominica.
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