Embrace Crypto!

Make

Offshore Business

Great Again!

unDystopia 2021

Crypto Castle Symposium

#WhoAmI

• Perpetual traveler using crypto daily, with no permanent /tax residency in the EU
• Cryptoanarchist & voluntaryist focused on technology and society hacking
• IT security guy, founder of IT security hacking companies (Nethemba, Hacktrophy) & contemporary art (Satori)
• Co-founder of Bratislava's and Prague's hackerspaces (Progressbar & Paralelni Polis)
• Co-organizer of HCPP (ideologist responsible for speakers :-)
• Member of Czech contemporary anti-government artistic group Ztohoven
• Responsible for many anti-government & digital privacy projects

Fiat privacy is dead

• Cash limits in most developed countries
• Comprehensive reporting:
  • FATCA (more than 113 "signature" countries)
  • CRS (more than 100 "signature" countries)
  • FATF-GAFI
• No anonymous payment cards
• Traditional offshore proxies (nominee director/shareholder) won't help you - the bank always wants to know the beneficiary owner
• It may be very difficult to open the bank account for companies created in some offshore countries

Financial totality

• Spying & tracking & blocking of all your transactions
  • Card payment companies, banks, government institutions - all of them can see and track your financial transactions
  • There are many so-called "protective regulations" like KYC, AML leading to "financial totality."
• Large leaks of CRS/FATCA/KYC/AML databases (by hackers or disgruntled employees) threatening the privacy of all millions of people

• Risk of seizure of all your assets by the government

The biggest privacy risk for doing business in 2021:

the banks.

Challenge for your business in 2021:

Get rid of the banks!

Real digital privacy starts with protecting your financial transactions.

New digital cash

• Privacy with a native fungibility:
  • Monero
  • BTC / LTC Lightning
  • L-BTC
• Privacy with extra additional mixing:
  • Incognito
  • Wasabi 
  • Samourai

How to persuade your customers to pay you in crypto

• Show them how many other companies already accept crypto ( https://coinmap.org )
• Explain to them you do not support bank transfers because your highly respect your customer's privacy
• Help them to change fiat for crypto in the given country
• Offer them a special discount when they pay you in crypto
• Tell them fiat is dead; crypto is the future :-)

Yes, it is still possible to buy crypto anonymously

• Bisq / HodlHodl decentralized crypto exchanges
• Crypto ATMs in many countries (up to 1000 EUR)
• Join your local crypto community/crypto trade channels

Customers have to be aware of apparent advantages of using cryptocurrencies

How to pay your suppliers

• Prefer crypto-friendly ones (you will be surprised how many companies already accept crypto for their services or products)
  • Microsoft, PayPal, Amazon (through purse.io), AXA, Twitch, Namecheap, Destinia (flight tickets, accommodation, car rentals in most countries)
• If it is not possible, use SEPA/wire crypto gateways (e.g. SimpleCoin.eu, cryptopay.cz, bity.com)
  • Most of them support the registration of offshore companies (with nominee director/shareholder)

With existing crypto-SEPA gateways

• Up to 300-1000 EUR in an anonymous way
• Up to 10k EUR with the basic KYC of a physical person (can be a nominee director/shareholder)

Unfortunately, this can be changed in the near future:

• The EU is planning to:
  • Enforce small cash limits
  • Ban of truly anonymous cryptocurrencies (like Monero) 

 Where to start an offshore company?

• Usually, it is best to choose a suitable territorial taxation jurisdiction
• Not using bank accounts allows you more flexibility in choosing a suitable offshore country for your company
• If you do not work for US customers / do not do business in the US or interact with the US suppliers, then choose a US Wyoming company (can be set up in an anonymous way)
• Otherwise, choose the Panamanian company or company in any country which has good double tax treaty agreements with the countries where your customers are located

 Requirements of a good offshore company

• Full territorial taxation (0 % tax for foreign income)
• No need for yearly tax declaration (in case of foreign income)
• Minimum or zero expenses for accounting
• Double tax treaty agreements with the country where you have your customers

 Dangers

• Strict CFC rules in your home / tax residency country
  • Use proxy (nominee director/shareholder) for your offshore company
    • Never ever open the bank account for this company - the bank wants to know the beneficiary owner that will completely deanonymize your company structure
  • Give up your permanent / tax residency in a tax hell 
    • Obtain a new permanent/tax residency in territorial taxation countries (Paraguay, Panama)

 DAO companies & legal protection

• Since 1st July 2021 Wyoming state recognizes DAO structures as legal entities
• Wyoming’s DAO LLC legislation represents the boldest attempt to close the gap between formalized corporate structures and unincorporated groups governed by rules coded in smart contracts
• Regulators around the world should consider passing equivalent laws in their jurisdictions to ensure legal protection for those developing and participating in DAOs.

The EU is already a tax hell and digital totality

(massive surveillance society)

Think about giving up your permanent residency there.

Paraguay

• 100% territorial taxation country for physical persons
• One of the last few countries in the world where is still easy to obtain a permanent residency (without the need of buying an expensive apartment or significant investment)
• To keep the permanent residency you have to visit Paraguay once per 3 years
• If you want to have a tax residency in Paraguay only, you should not stay in any other country more than 6 months per year and/or have the center of interests there

Optimum scenario (for the EU citizens)

• Be 100% crypto-only (no banks accounts at all), prefer anonymous cryptocurrencies
• Do not have permanent/tax residency in the EU (you cannot be in any country for more than 6 months)
• Have permanent residency in a territorial taxation country (like Paraguay)
• Have an offshore company in the US/Wyoming (in case you don't have the US customers/suppliers)
• Have an offshore company in any country with territorial taxation for companies

Are you a US citizen?

• Stop being a tax slave:
  • Get citizenship of any other country (you can buy it, check "investment visas" or "golden visas")
  • Give up your US citizenship (remember you have 10 years duty to submit your tax declaration to the IRS)
• Or move to Puerto Rico (the US territory with special tax benefits for the US citizens)

Make (Crypto) Offshore Business

Great Again!

Thanks for your attention!

Questions?