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Citizenship By Cryptocurrency: Step By Step Guide

Guest Post | Sep 28, 2022

Unsplash image bitcoin - Citizenship By Cryptocurrency: Step By Step Guide

Unsplash: Image/Peiobty

The year is 2022, and nothing is impossible. People are slowly shifting from regular paper currency to digital one, which is quite a revolutionary idea. It has made things easier and processes faster. Cryptocurrency has now entered every segment of human life.

A few years ago, no one could have imagined buying the citizenship of a country through cryptocurrency. However, now it’s totally possible. Some countries across the globe allow you to buy citizenship by investing in real estate through cryptocurrency. One prominent example is that of El Salvador. It has started accepting crypto payments in almost all of its business processes.

However, getting citizenship simply by investing in real estate through cryptocurrencies is a bit tough for other countries. Instead, the investor has to sell off his cryptos and then use this money to be a part of the citizenship by investment (CBI) program. Simply put, the money is transferred to the bank account, which proves its legality. Once all this is done, the investor can get his hands on the second passport.

However, as it is a new concept, buying citizenship through cryptocurrency may get a little complicated. There could be lots of complications in the process, which you should be aware of before starting it out. This article explains every aspect of this process, which would make things rather simpler for you.

Legality Of The Money

One major concern that arises from using cryptocurrency as the major source of income to buy citizenship is proving its legality. The due diligence checks in the CBI process are quite extensive. When you sell your crypto to use that money in this process, confirming the legitimacy of your source of income gets a little challenging.

This is because things will get a little bit extensive; you will have to showcase the legality of the fund you would use to buy the cryptocurrency initially. Alongside this, there would be a need to display all the documents that would showcase the rate at which you sold them off and whether you paid tax against them or not.

Nonetheless, this may not be enough sometimes, and authorities may ask for more documentation; you may need to provide that. The best way to go about it is to apply for citizenship by investment programs that are tailored and handled by a professional company, which means they will guide you through the process.

Using Bitcoin For Other Citizenship By Investment Programs

In countries that don't accept crypto payments as a legit form of payment, a secondary route is to be taken for their residential processes. The process involves the conversion of cryptocurrency into fiat currency. This money is then used to pay for the investment process that leads to the provision of residency or citizenship in the particular country.

Many countries are friendly towards this process and consider it the legit way to enter the CBI program. The two major ones amongst them are Portugal and Malta. Their residential programs are extremely smooth and crypto-friendly. They also let the resident make further crypto investments in their countries.

Nonetheless, many countries don't really let the applicants use the currency converted from crypto. Rather, they want a smooth and proper source of income and don't consider crypto funds legal for the CBI purpose.

Unsplash image passport - Citizenship By Cryptocurrency: Step By Step Guide

Unsplash: Image

Step-By-Step Guide For Using Crypto In The CBI Process

Process 1

For countries like El Salvador that accept crypto as a legit form of investment to get citizenship, you merely need to submit the required documents and use your crypto assets to invest in real estate in the said country.

Process 2

This is for the countries that don't consider direct usage of cryptocurrency as a form of payment in the citizenship by investment process.

  1. Get your hands on all the documents related to crypto trade in the regulated market. Your legality as an investor should be documented well. If your exchange got you to fill out the KYC in great detail, the possibilities are that you won't really find any issue with the entire due diligence process. Each form will be easy to fill in this scenario.
  2. You can also prove the legality of your source of income simply by showing the documents providing your paid taxes. This way, you could showcase your capital gains and taxes paid on them. All your paid taxes during and after purchasing the cryptos shown through documents will make the whole process easier.
  3. Along with the proof of taxes paid, showcasing the bank account transactions, both national and international, will make your case sturdy. This way, all your sources of income will have legal proof attached to them, making you a reliable applicant.

See:  List of Digital Nomad Visas (TechPats) by Country

It's Time To Initiate Your CBI Process

Though it requires extensive documentation and statements to prove your source of income, citizenship by cryptocurrency is something many people have started opting for in recent times. If you are interested in digital currency, you can surely take this route!

 


NCFA Jan 2018 resize - Citizenship By Cryptocurrency: Step By Step GuideThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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