BITHUBCOMMUNITY

BITHUBCOMMUNITY -100,000,000BHCx (31BTC) TO BE ISSUED

The choice of where we want to lead the ICO is always the result of a thorough analysis. A badly chosen registration location for the token issuer, the work of the best event of the marketing department, and the losses can be in the area of ​​promotion, taxation and the feasibility of the project itself. There is the country for the ideal ICO number, but there are the most appropriate factors for the specificity of the project.

When advising clients in many parts of the world on the implementation of ACI, there is still time to ask the following questions: What is the best way to carry out the ICO process? Which country should be chosen? Which country is the best legislation? Unfortunately, these questions do not have a unified answer, which would be a panacea for all doubts. If we can not find a universal country that fits all projects, we can share our mindset about the location of the ICO. Below is a list of factors to consider when looking for the best jurisdiction.

Who are and where are the buyers of our services?

The technology of the blockchain and the world of cryptocurrency that results from it have no state borders. We will also probably have the largest possible group of potential buyers in different parts of the world. Of course, you must know that each of us is guided by different ideas, stereotypes or prejudices. In general, investors prefer what is close to them and familiar to them. If the majority of our target audience is in Asia, we should consider the choice of Singapore or Hong Kong. Europeans will be much closer to Estonia, Malta and Switzerland, and Americans to the stability of various American states. There are also offshore jurisdictions (British Virgin Islands, Cayman Islands, Panama, for example) that rarely inspire investor confidence and are subject to many restrictions, even in Europe.

What are the legal conditions in a particular country?

Due to the policies of the European Union and the needs of the financial sector (especially banks), companies operating in the cryptocurrency sector introduce more extensive procedures of LBC (anti-money laundering) and knowledge of your client (KYC). A well-designed and anti-money laundering process enhances the credibility of the issuer, which increases the project's chances of success.

In addition to the above procedures, tax rules and their clear interpretation with respect to the ICO are of paramount importance. In some countries, such as Poland, the risk of using an unfavorable revenue source from international trade organizations can have a significant impact on the profitability of the whole society. We would exclude the sense of organization of emissions in Poland, where the interpretation of the legislation is ambiguous, and even comparing the crypto-currencies of the government to financial fraud. It is also necessary to avoid the vast territory of the country where the ICO is prohibited, such as China, Macedonia or Morocco.

In our area of ​​interest, countries in which the issue and sale of parts are legal and which the state authorities consider positive. In Europe, for example, we consider Malta, which officially presents itself as the most socially friendly place for companies in the cryptocurrency sector. Malta's attractiveness is confirmed by the presence of the largest European stock exchanges in its market. It is also important to consider Estonia, which, like Malta, has clear rules and an attractive tax system, but is a much cheaper alternative. Switzerland is the European country where ICO operates worldwide.
However, the activity is mainly reserved for large companies with sufficient resources.

Control

The characteristic of any business is the pursuit of maximizing profits and minimizing the tax burden. Tax planning is therefore a key element for successful businesses. Those who do not refer to them do not generate income and thus pay no taxes. Given the tax objective, attention should be paid to the effective tax rate, not just the nominal tax rate. Malta, where the nominal tax rate is 35%, while companies pay only 5% of the tax due to the refund system. However, tax returns can take months, which significantly limits the cash flow of the business.

Tax issues need to be considered in many ways. A major problem is the security and legality of the tax domicile of shareholders, directors of the ICO. Double taxation agreements contain the rules applicable to companies operating in two different countries. The regulation of CFCs, which has different forms in different countries, is also key. We talked about the example of Estonia as a tax-friendly country for a Polish taxpayer.

TCO

The cost of business services and services provided by different companies in different countries varies considerably. In general, offshore countries are the cheapest countries that do not require detailed reporting and accounting. It pays to pay attention to local administrative costs and the costs of consultants and accountants. The scale of digitization of a country's administration has a significant impact on costs. The ability to manage the business remotely via e-government avoids high charges for international shipments.

We are often faced with the need for legalization and certified translation documents, which can be very costly and time consuming in some countries. It can be assumed that the registration of the company is not enough to do business in the country of our choice. The costs for employees who work and stay on site are also important.

Bank account

Over the past three years, the criteria for opening bank accounts for foreigners and non-residents have been dramatically global. Therefore, it is important to consider the possibility of opening a bank account when choosing a jurisdiction. In general, companies do not need to have a bank account with national banks. The fastest way for an international company controlled by Polish taxpayers is to open a bank account in Poland. However, the documents, the ease of supply and the perception of a particular country by the Polish banks should be examined. A complex property structure of the company and a registration in a country classified as "tax havens" constitute a major obstacle.
We must also remember that most KYC banking procedures are used for personal exposure to the industry. Although traveling to the Czech Republic or Estonia is not a problem, traveling to Hong Kong without a guarantee of success can be very expensive and time consuming.

stability
The economic, legal and social stability of the selected country is an important theme of the trade point based on the ICOs. The certainty of the economic fluctuation that manifests itself is also important because of the updating of the data in the business register. The registration document change in Estonia takes place within two days, in Malta within two weeks. In Poland, it takes up to six months in extreme cases.

Of course, the factors we present are not the only ones to be taken into account, but in our view they play the most important role in choosing the most cost-effective objectives for the ICO. The order in which we touched certain aspects is random. We are aware that each consultant or lawyer has their own list and that the client can use a different key. For us, it is extremely important to realize how important it is to choose the right place to operate the ICO.

The material was developed in collaboration with Thompson & Stein Partner.

Thompson & Stein is an international law firm specializing in legal and tax advice. The company's activities include assistance in obtaining an encrypted currency exchange license and the advice of the ICOs.

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