cryptocreed

I know how it feels when someone forcefully says give me your hard-earned money and you can’t say no to them. Nowadays governments are imposing huge taxes on cryptocurrency earnings.

It is new for most people and even Tax assistants are not able to understand how to file taxes.

In different countries, governments are imposing taxes that are not sustainable. Paying taxes is not a bad idea in my opinion but it should be affordable like 5 to 12%.

Note Educational: If you are from India and want to save Tax on crypto tax then use services like Angadia.

Countries With Taxes On Crypto

There are many countries that they started imposing taxes on crypto in recent times Government of India imposed a 30% tax on your crypto profit.

USA – 0 to 37% (considered crypto as an asset, not currency)

India – 30% (tax on crypto profit)

UK – 10 to 20% (no tax on below $16610)

Netherlands – 31% (depends on different rates & holdings)

Italy – Different % (on sale more than $58,232)

Australia – 50% (coins kept for 12 months or more)

Canada – 15 to 33% (depends on the income you generated)

Germany – No tax on crypto transactions of 600 USD or less

Cyprus – 12.5% (corporate tax)

Countries Without Crypto Tax In 2023

Following are the countries where you can move to save huge taxes on your crypto. If you are not one then you can suggest someone whom you know.

El Salvador

El Salvador is one of the first countries that approved Bitcoin as a legal tender. In mid-2021, the assembly approved a bill to legalize Bitcoin as a legal tender.

El Salvador is located in Central America with a population of 6 million people. Currently, the country has two legal tenders, Bitcoin and the US Dollar.

The country doesn’t impose any tax on their citizen, in order to promote investment.

The country’s financial condition is not quite good, the country will have total debt of 95% of its total GDP. It is important to note that legalizing Bitcoin doesn’t make any positive changes in its financial position.

The cost of living in El Salvador is low.

Malaysia

Malaysia is a real haven for crypto tax savers, there is no tax on crypto earnings in Malaysia. Even though the country doesn’t consider cryptocurrencies as legal tender.

But the local or anyone registered person, trading crypto may need to pay tax which is not open yet, locals from Malaysia may comment so others can know how much tax is there on crypto in Malaysia.

In short, if you want to disclose your earnings to govt then you may need to pay tax on your daily traders, or else you can ignore it.

The cost of living in Malaysia is low.

Malta

According to govt of Malta Bitcoin and any other cryptocurrencies are a “unit of account, medium of exchange or a store of value”. Their tax rules make them a haven for crypto holders.

There is no tax on Capital Gains on long-term gains from selling crypto. It is known as a store of value.

The income tax imposed varies from 0 to 35%.  Multiple factors are there which affect your tax slab according to your earnings and trading etc.

The government of Malta is following crypto for a long time hence they introduced their tax rules in 2018.

The cost of living in Malta is considered average.

Portugal

Portugal is another crypto-friendly country that can help you save your taxes. They have produced a law that exempted cryptocurrencies sale by individuals from tax since 2018.

There is a tax on accepted crypto as payment for goods or services, mostly businesses do this hence this will affect these tax laws. The most benefits of these tax-free laws go to local residents of Portugal.

The Minister of Finance of Portugal recently said that the crypto tax policy may get change and everyone might have to come under the tax.

The cost of living in Portugal is low.

Bermuda

Bermuda was the first country that accepted USDC coin as the official payment currency method, which can be used to pay for taxes, fees, and any other government services. They don’t have capital gains or income tax on cryptocurrency.

The cost of living in Bermuda is a bit high hence if you are planning to move there forever then it might cost you more.

Bermuda doesn’t’ impose any tax on income, capital gains, withholding, or anything related to cryptocurrency transactions.

Switzerland

No doubt why Switzerland calls it a Crypto Valley, they have one of the best and crypto-friendly crypto policies for every type of crypto investor or holder.

Cryptocurrency income and capital gains are taxed free but apply only to individual investors or crypto holders. You have to pay taxes if you are a business or professional.

Also, professional crypto traders and miners have to pay taxes on their crypto. Plus Income Tax department charges some % of your assets as wealth tax, varying from 0.50 to 0.80%.

The cost of living in Switzerland is high.

Singapore

You might have noticed that most of the cryptocurrency exchanges have their headquarters in Singapore, it is the first destination for exchanges to launch from.

Singapore is a crypto tax haven for every type of cryptocurrency holder or business.

Singapore doesn’t have a Capital Gains tax which makes individuals and businesses not pay any tax on capital gains. You can sell and trade crypto without paying any tax.

Businesses have to pay some percentage of tax under GST which is not avoidable but yes they are less in comparison to any other country.

The cost of living in Singapore is high.

Belarus

Since 2018 there is a law in Belarus that allows crypto users from paying taxes. In 2018 Belarus has passed a law that exempts cryptocurrencies from income tax and capital gains for everyone.

The law was valid till 2023, 2023 this law will review and the government will decide if they want to extend this law or impose new tax rules

Still, it’s important to remember that these policies will be up for review in 2023. It’s unclear how cryptocurrencies will be taxed in Belarus in the future.

The cost of living in Belarus is low.

Cayman Islands

The Cayman Islands is not only a tax haven for crypto holders but for any other individuals or businesses that are willing to save taxes. They have no capital gains or income taxes on cryptocurrencies.

If you are planning to settle down in the country then it might cost you more. Cayman Island has import duties that generate revenue for them, 22 to 26% of import duties.

The cost of living in the Cayman Islands is high.

United Arab Emirates

UAE tops the list of Countries Without Crypto Tax for big companies and influencers.

The UAE government or financial authorities doesn’t ask you to disclose your crypto earnings. The United Arab Emirates doesn’t have capital gains or income tax for individual investors.

You have to pay 5% of the VAT for any purchase of goods or services using cryptocurrencies. The amount of percentage is very sustainable.

The cost of living in the UAE is high.

Puerto Rico

Puerto Rico is a part of the United States and they have its own tax policy. Moving to Puerto Rico for American citizens might be easier in comparison to persons living in other regions.

Puerto Rico has lower tax rates like you have to pay Territorial income tax which is quite low in comparison to America.

There is no capital gains tax or crypto tax in Puerto Rico. If you are living in America and moving with your crypto to Puerto Rico then you will have to pay taxes according to the US Federal Income Tax rate.

But if you make crypto after residing in Puerto Rico then it will get exempted from capital gains.

The cost of living in Puerto Rico is average.

Georgia

Georgia is a tax-free country for individuals but there is a tax on crypto for legal entities which is a 15% corporation tax.

The cost of living in Georgia is average.

Remember when Wintermute was hacked using a compromised wallet and lost $162M in Defi operations?

Data security is essential for the crypto and fintech industries. With the ongoing growth of technological advancements — cybersecurity has become a primary concern for both industries.

The most crucial step business owners can take to protect their data is implementing appropriate security measures such as encryption and authentication. This ensures that user information is encrypted and that only authenticated users can access it. It also helps to protect user data from external threats such as hackers and phishing attacks. But this is just the tip of the iceberg!

Additionally, companies should use robust security systems that can identify threats and act fast in case of breaches. This covers many topics, including data mapping, cloud security, bad bot blocking, firewall protection, application security, and malware detection and prevention.

To handle any potential incidents involving data security, it’s also critical to have effective incident response strategies in place. By doing this, the company can swiftly fix any security concerns and lower the possibility of further damage.

In this article, we walk through 19 security measures you can take being in the crypto or a fintech industry:

List of 19 measures!

Block bad bots from the web and server

One of the ways to protect your data is to block bad bots and other automated attacks. 

This is done using tools such as captchas and reCAPTCHAs to prevent automated requests from accessing your data. ReCAPTCHAs are used to ensure that only real humans are accessing your data. Moreover, web application firewalls (WAFs) can also help protect your data by blocking malicious traffic before reaching your network.

Conduct data mapping

Data mapping is a process where businesses identify and analyse different layers of data to determine the most critical components and to ensure that the data is being used securely. 

This helps businesses understand who has access to the data and how it should be used. Moreover, businesses should also create data maps that outline any data stored, processed, or transmitted over the network. Read Osano’s data mapping guide if you want to learn more.

Use a SOC 2 audit

Security controls must meet American Institute of Certified Public Accountants (AICPA) requirements. 

A form of audit called a Service Organization Control (SOC) 2 audit verifies that data is handled, communicated, and kept securely and in line with the trust services principles and standards of the AICPA.

Secure your web application stack

To guarantee the safety and security of your data, you must secure the server, network, and databases that make up your web application stack. 

This entails ensuring that your server is configured correctly and that the most recent security protocols are being used. Additionally, it’s crucial to secure your databases with firewalls and other measures. Contact cybersecurity professionals who can assist you if you have questions about configuring your web application stack safely.

Use SSL/TLS to secure data while it is being transmitted.

SSL/TLS is a security protocol used to encrypt data. 

In contrast, it is being transmitted to ensure its security. It establishes a safe connection between two entities, a client and a web server. Malicious actors cannot access user accounts or intercept data thanks to this encryption. A reputable certificate authority should be used to purchase SSL/TLS certificates.

Implement API security standards

Since APIs enable communication between apps and services, API security is also essential in the financial and cryptocurrency sectors. 

Use API security standards like OAuth 2.0 and OpenID Connect to protect your API. By utilising these protocols, one can prevent malevolent actors.

Adhere to the principle of least privilege

This asserts that a person should only be given the minimal permissions required to accomplish their job. 

Because user privileges are restricted, this protects your data from malicious parties. Giving users the fewest access possible lowers the risk of an inside assault or careless staff members compromising your data.

Regular vulnerability scans are an excellent approach to finding security gaps and weak points in your infrastructure.

Conduct continuous vulnerability scans. 

Business owners can more readily find and remedy any holes by conducting vulnerability scans. Additionally, this helps stop attackers from taking advantage of any system security holes.

Implement two-factor authentication (2FA)

2FA adds a layer of security by requiring users to input a code or PIN that only they are aware of to access the system. This helps protect your data even if someone can access it without authority.

Enforce strong password policies 

A strong password can significantly improve data security. 

Users must follow a guideline that requires them to use lengthy, challenging passwords with capital letters, digits, and symbols. Additionally, each user must regularly change their password.

Set up data encryption keys

Saved data should be encrypted to protect it. 

Take advantage of data encryption keys to ensure data cannot be viewed or taken by malicious third parties. Keys should also be regularly changed to minimise the risk of data loss.

Implement training and awareness programs

User awareness and education are essential in the financial and cryptocurrency sectors. 

Teach your employees about security risks such as phishing and malware, as well as how to recognise them and respond accordingly. This helps in avoiding costly, time-consuming processes that come after a mishap.

Establish a backup strategy

Routinely backing up data is essential. 

This ensures that any data lost can be recovered quickly and without disruption. Store your backups in a secure location, such as an off-site server or cloud storage provider

Monitor your system and establish user access controls

Use monitoring tools to monitor any suspicious activity and ensure that the data is handled correctly. You should also set up user access controls to limit access to sensitive information.

Conduct regular penetration

Regular penetration testing and ethical hacking exercises help identify system vulnerabilities and areas for improvement. This helps you pinpoint any weaknesses in your system and patch them accordingly.

Evaluate third-party compliance

When working with third-party vendors, evaluate their data security policies and procedures. Verify that their data security protocols meet the standards you define for your business. Moreover, require them to sign a nondisclosure agreement.

Update your software regularly.

Software updates are essential for data security. Constantly update your operating system, application, and plugins as soon as new updates are released. This ensures that your system is protected against the latest malicious threats.

Follow payment security best practices.

Secure payment methods must be implemented if you’re processing payments. Take advantage of payment card industry (PCI) compliance and adhere to best practices to protect user data. Additionally, encrypt data stored on payment processors and keep customers informed of the payment process.

Enlist the help of a cybersecurity expert

If you don’t have an internal IT team or an in-house cybersecurity expert, you should hire a consultant to help ensure your systems are secure. 

Consequently, you can allocate time and resources to the most critical areas of your business.

Furthermore, consider investing in cyber insurance to cover any damages or losses incurred due to a cybersecurity incident. Cyber insurance will cover the costs of remediating a breach and help you recover quickly.

There are many ways to bolster your data security in the crypto and financial industries. 

While no one security solution will provide 100% security — businesses should use multiple measures to protect their data and networks. 

Implementing the appropriate policies, protocols, and security solutions is necessary for any business dealing with crypto or traditional currency.

Did you enjoy this article? Here are some more reads!

• Top 4 best multi-cryptocurrency wallets with high security and features
• 7 best and secure places to buy bitcoin in 2022