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?

Make (Crypto) Offshore Business Great Again!

By Pavol Luptak

Make (Crypto) Offshore Business Great Again!

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