How the state in the Czech Republic and Slovakia killed crypto
A few days ago, I realized that most of my crypto friends, with whom I communicate on a daily basis, are no longer Slovak residents – they have already moved out of Slovakia or are in the process of moving and arranging a new residence. Some in Portugal, some in Germany (where the capital tax after a year on cryptos is 0%), some moving to Panama and (thanks to Liberation.Travel) to Paraguay, others just figured out that they finally have the means to become “perpetual travelers” and are starting to travel around the world.
Slovakia’s, arguably the worst, crypto legislation in the world (with a record almost 39% tax burden), combined with COVID-19 restrictions, is not a reason for a crypto person to stay in Slovakia under the current circumstances.
Slovak officials (and politicians) still don’t understand that crypto people are among the most flexible ones, who can really easily pack up and move to a country where they can pay exactly zero on their crypto income instead of almost 40%.
Question for the crypto owner: Do you buy a luxury property in Asunción with crypto taxed at exactly 0% or do you stay in a country where almost 40% of it is donated to an organization whose former boss is in jail?
Unfortunately crypto people aren’t just people who got rich off of “nothing”.
They are often very clever and intelligent entrepreneurs who have had successful companies as well as crypto businesses in the country. These people have no incentive to stay in Slovakia under the current circumstances. That is why they are leaving.
Peter Bešina explains why, due to the unfortunate crypto legislation in Slovakia, a large part of Bitcoin ATMs are moving to Panama, Uruguay, and other countries:
Almost 20 years ago, I left Slovakia to study in Prague. After finishing school, due to the threat of mandatory military (or civilian) service, I decided not to return to Slovakia. Thousands of smart and intelligent Slovak students did it together with me. They stayed to work in Prague or other foreign cities. It made no sense for any of them to return to Slovakia and “do” a year of compulsory military service. A few years later Slovakia joined NATO. Unfortunately, the thousands of brains that Slovakia deprived itself of with compulsory military service never returned.
The scenario of the escaping smart and productive people is repeating itself in 2021
I personally know more than 60 crypto refugees already. People who have definitely decided that they are leaving for better conditions. I probably don’t know hundreds of more crypto people who are leaving.
The Czech Republic and Slovakia is a place where, since the beginning of Bitcoin, there has been an extremely strong and active crypto scene. Parallel and Parallel Polis, a globally unique organization to promote cryptocurrencies and parallel society, was founded here. The best crypto companies in the world have emerged here, giving the world secure Bitcoin wallets, or Bitcoin ATMs, payment terminals, or various crypto investment platforms.
The Czech Republic and Slovakia were set to become the world’s crypto mecca. All they had to do was declare 0% on crypto (as many other countries have done) and not regulate cryptocurrencies in any way (after all, the best regulation is none).
Instead, crypto legislation was passed in Slovakia that killed it completely and made crypto pioneers into crypto refugees. Seeking refuge where they are treated better.