Is Taking Your Crypto Offshore a Good Idea?

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Cryptocurrency investment is on the rise in the US following the presidential election. News that President-elect Donald Trump is set to improve conditions for crypto-related industries has buoyed the market, helping values to rise.

Plans to create a more clearly defined regulatory framework will be beneficial to existing crypto operators, and should also encourage further growth. However, some crypto holders are still looking at offshore banking options for their digital assets.

Offshore Banking

Offshore crypto transactions are nothing new to Americans, with many exploiting the regulatory loophole that allows consumers in states where gambling is restricted to access offshore operators. Gambling expert Charlon Muscat explains that there are many offshore options available that support crypto, making international deposits and withdrawals significantly easier.

There are no restrictions on consumers being allowed to access offshore operators, and the best-licensed sites offer the same high-quality gaming and security as licensed US operators.

The benefits of US citizens visiting offshore crypto casinos are mirrored to some degree in the potential for offshore crypto holdings. This is because they both offer greater privacy for users as well as more choice.

Offshore crypto banking is on the rise for a number of reasons, but investors will be keen to look at both sides of the argument before making their decision.

Malta, Switzerland, and Singapore are three of the top options available to consumers. Malta's reputation as being crypto-friendly has seen it firmly establish itself as a top location for external crypto-banking options.

Malta's supportive regulatory environment and tax incentives make it a great option, and it is already well known for its offshore gambling facilities.

Switzerland is another European country with favorable regulations. There is a clear regulatory framework and a number of existing blockchain companies already operating there.

Singapore is one of the best Asian crypto markets with its Payment Services Act providing a crypto-friendly regulatory framework. Its great location and tax benefits make it an excellent option.

Pros and Cons of Taking Cryptocurrencies Offshore

Carrying out due diligence on crypto investments is essential, and this involves studying the white paper, checking the new project’s popularity, and looking at the staff involved. Similarly, consumers will want the full picture when looking at offshore crypto banking options.

Looking at the different countries that offer secure banking, as well as the financial institutions' histories will help, but before you do this you should look at the pros and cons of offshore banking.

Pros of Taking Cryptocurrencies Offshore

Offshore banking facilities can offer users a secure location that reduces the risk of economic or political instability, it is also an excellent option for those looking to enhance their privacy.

External banks also allow consumers to diversify holding locations and can often help them make the most of favorable tax laws. Moving crypto holdings to countries with well-defined regulatory frameworks can also provide a safer environment.

Access to international trading platforms can open up greater investment potential that might not be available in the US, helping the user to grow their assets and the potential for sign-up bonuses is also a great incentive.

Cons of Taking Cryptocurrencies Offshore

It goes without saying that there are also some downsides to consider when moving assets abroad. This includes potential regulatory risks associated with strict tax authorities in the countries you move it to.

Compliance and reporting of digital assets can be confusing due to its relatively recent emergence and old legislation. Failure to properly comply with domestic and international regulations could result in stiff penalties.

While there are many benefits, you should always consider the overall cost and complexity of moving your assets to a new location. Challenging set-ups, increased fees, and international regulations can all make it a difficult and costly option.