Puerto Rico Can Attain Blockhain Island Title With Its Unique Tax Incentives
Puerto Rico can regain the blockchain island title back since it has unique tax incentives for the locals, but there are also obstacles.
According to Puerto Rican tax attorney Giovanni Mendez, Puerto Rico’s Act 60 gives 0% capital gains tax on crypto-assets. Michael Terpin, one of the first crypto investors to migrate into the country, engaged in the crypto capital gains tax-relief program and was positive for the island, Decrypt reported.
Terpin stated during the CoinAgenda event that Puerto Rico can remember the title of Blockchain Island, notwithstanding close competition with Malta and Bermuda. Cryptocurrency mining companies, including Coinmint, the most massive cryptocurrency mining operation in North America, are as excited as Terpin.
“Coinmint is a Puerto Rico entity, and our headquarters is in Puerto Rico. The senior leadership of the company has relocated to the island,” CFO Michael Maloney stated at the event.
Although Puerto Rico is very encouraging for crypto, there are also hurdles. Cyril Meduna, the founder of Puerto Rico’s first and largest private equity and venture capital firm Advent-Morro Equity Partners, yielded some of his observations, which may inhibit the growth of cryptocurrency in the country.
“Companies that want to establish themselves in Puerto Rico end up seeking coders in other countries as there is a lack of talent in the area,” stated Meduna, who migrated to the island 20 years ago from Chile. “We are working on creating a full-stack coding school that will help build human talent and lessen the dependency on tax incentives.”
Another major hindrance to the country is the strand of natural disasters. The place is likely to earthquakes and hurricanes. According to Gail Nolan, a principal strategist for Invest Puerto Rico, “Disasters have caused companies to evaluate possible downtime costs and risks factors. “
Brock Pierce, former child actor, bitcoin billionaire and co-founder of EOS Alliance Block.one, bestows the same observations. Pierce moved to Puerto Rico, and for him, the difficulties that may limit the blockchain technology in the country incorporate the uncertainty in local government and regulatory. Also, the local market is not sufficient for startups to raise money.
Meantime, the government of Malta needs to operate a blockchain island notwithstanding rejecting crypto exchange Binance in the country. The Malta government stated that it is authorized to combining blockchain with other niche sectors, and it is interested in exploiting its advantages.