The cryptocurrency boom has established itself as a phenomenon of these times. They are steadily moving on a straight path that will lead them to become significant players in the financial market. You can use the income you generate from excellent cryptocurrency exchanges like Limmercoin in various ways.
Bitcoin is gradually gaining favor with investors, but it has yet to be legitimized. Suspicions of being used to finance illegal activities, hide money and launder haunt cryptocurrencies at a time of moves against tax havens.
The anonymity offered by Bitcoin tempts more than one for opaque purposes.
What is a tax haven?
A tax haven is considered the territory or State that applies a particularly favorable tax regime to non-resident citizens and companies with their legal domicile there.
Tax havens are among the instruments most used by people and companies that practice tax avoidance and evasion, but with wealth come taxes and, with them, some discontent.
The trend of staying in the market for many more years is inevitable, so cryptocurrencies have arrived and will continue to position themselves over time.
Every day more corporations and financial institutions are evaluating the possibilities of entering the financial world of cryptocurrencies, where creating departments and areas specialized in virtual currencies is already essential.
So much so that Mastercard and Bank of NY Mellon have allocated part of their capital to invest in cryptocurrencies and thus be able to be part of this new financial guideline.
These actions have allowed the valuation of digital currencies to increase and reach historical values that benefit everyone.
As technology and the economy advance simultaneously, more and more proposals arise in terms of electronic payment; digital currencies and virtual payments are positioning themselves on a larger scale, such as PayPal, leaving money in circulation. In the background.
In this situation, the question arises:
Is it possible that some cryptocurrency guarantees the stability of the system?
Many fraudulent options have emerged, and of course, they have sought refuge in this virtual or digital money proposal. However, their anonymity is one of the characteristics despite the volatility that makes them more attractive for this type of market.
The traditional system, as it is controlled and supervised by a third party, avoids this type of input operation since all the processes that are carried out must have the data of its users.
The decentralization of cryptocurrencies is one of the factors or characteristics that make them more attractive; since they are faster, it is essential to evaluate the adaptation capacity of users in a massive way in the economic environment.
There will always be concern about the fight against tax fraud; there are many countries where we can find tax havens; Right now, in the world, the great challenge is to end the laundering of black money through cryptocurrencies.
The collapse of the economy due to the pandemic, the rattling of nationalizing sabers, and low-interest rates have led global investors to diversify risks when investing their capital.
Tax havens are based on the technological age
Although a few years ago it might seem impossible, technology has taken giant steps, and little by little, we have been adapting and even getting involved with it. For example, most banking is done virtually online, which is no different with this Blockchain and cryptocurrency proposition.
Although tax evasion is an issue that has been around for a long time, which is why these tax havens were born, it is feared that it is due to the lack of regulation or control over cryptocurrencies by the leading financial actors such as central banks and governments.
This type of action could be increased just by leveraging the Blockchain. There would be no trace of this type of operation.
Whether traditional (Central Banks/Governments) or digital (Blockchain/cryptocurrencies), no economic system has eliminated this tax evasion practice.
Conclusion
The opacity and lack of regulation make cryptocurrencies a perfect tool to avoid paying taxes. As a result, we are facing a massive tax evasion hole on an international scale that will render the existence of earthly tax havens meaningless.
