Estonia’s e-Residency program allows location-independent non-citizens and firms to access services such as banking digitally. Cryptocurrency firms have particularly embraced the program warmly with around 600 of them estimated to be registered there currently. Consequently, the Estonian central bank deputy governor, Madis Muller, says the program poses a money-laundering risk In quotes reported by Reuters, the central bank chief stated: There is a money laundering risk with cryptocurrency operators. We have made it too easy for these crypto operators now. They get a reputational benefit from their link to Estonia. We get the reputational risk. Empowering Estonian Police to Investigate
Regulatory Loophole Helps Startups in India Accept Bitcoin Without Breaking the Law
Some businesses in India believe that they have found a loophole in the finance minister’s speech that sought to clamp down on the use of cryptocurrencies. While this loophole may allow startups to accept bitcoin without breaking the law, experts question its viability.
Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies
The Loophole
As the Indian government is working on the regulatory framework for cryptocurrencies, startups in the country are finding a way to accept bitcoin and other cryptocurrencies without breaking the law.
Tax Loophole Found for UK Crypto Profits
Each country has its own systems for tax evaluation and collection, and some countries are stricter than others. One of the major issues governments have with cryptocurrencies is the difficulty in taxing profits made on trading. The United Kingdom’s HMRC (Her Majesty’s Revenue and Customs department) found this out the hard way.
Finance experts have warned that a loophole which reduces crypto gains to zero can be exploited on tax returns in the UK. It was reported that this could potentially deprive the government of millions in lost revenue.
