15 August 2022
As cryptocurrency prices have plummeted this year, crypto investors have become more selective about where they invest their money. Therefore, the British Channel Islands, Jersey, and Guernsey have become satisfying choices, which began competing for the booming asset class before crypto entered the mainstream.
Jersey and Guernsey are attracting crypto, blockchain, and other investment firms and offering crypto investors incentives to move their money from territories like Bermuda and the Cayman Islands since they have beneficial tax laws and neither of them has capital gains or inheritance tax.
Jersey has attracted several companies, including Coinshares, which manages around $3 billion worth of assets. The company used Jersey to establish its physical bitcoin exchange trading product in January 2021.
“We’re competing directly against Cayman, and we’re seeing the migration of US funds out of there. Brazilian and South American investors have fallen out of love with Cayman, and are moving the capital to Guernsey.” said a Guernsey-based fund manager Barney Lewis at the firm ZEDRA.
According to the experts, “crypto winter ” can benefit the space and the maturation of the crypto sector could increase investors’ interest in low-tax jurisdictions like Jersey and Guernsey.
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