The Bahamas enables residents pay taxes with crypto in 2022

The Bahamas enables residents pay taxes with crypto in 2022

TL;DR Breakdown

  • The Bahamas government intends to allow Bahamian residents to pay taxes using digital assets.
  • The Bahamian nation works towards being a global crypto hub.

According to a whitepaper detailing the Bahamas’ digital asset strategy until 2026, the government will allow Bahamians to pay taxes in cryptocurrency. In a Wednesday white paper, the Bahamas’ Office of the Prime Minister announced that taxes would get paid using digital assets. The government will achieve the goal by collaborating with the country’s central bank and the private sector.

The Bahamas government introduces crypto taxes possibilities

Digital assets might soon be accessible to residents of the Bahamas, an island nation. In addition, the government intends to advance crypto adoption and usage among its citizens by establishing a national digital currency and encouraging greater Sand Dollar use.

The Government will endeavour to ensure that digital assets are not used for the evasion of taxes or sanctions, and will seek to ensure compliance with all applicable tax information exchange agreements (TIEA) and domestic laws and agreed OECD standards.

said in the white paper.

To achieve uniformity among the branches of government, the Bahamas announced the creation of a digital asset policy committee and a digital advisory panel, also known as the DAP. Prime Minister Philip Davis will lead the former, among other important executives.

In addition, the advisory panel will include specialists from the digital asset sector. These experts will closely watch digital assets and related digital developments, emerging trends, and associated threats to ensure that they are up to date. The Bahamas, like the other top global economic powers, wants to make its country a cryptocurrency centre.

We have the vision to transform The Bahamas into the leading digital assets hub in the Caribbean and a global leader in the progressive regulation of businesses in this profoundly innovative space. While we recognise the extraordinary opportunities afforded by digital assets, we also recognise the risks, and thus we emphasise the importance of effective regulation.

said Philip Davis.

The publication of the whitepaper takes place one week before the Crypto Bahamas conference, which cryptocurrency exchange FTX will host. Guests will include former U.K. Prime Minister Tony Blair, Bill Clinton, and National Football League quarterback Tom Brady.

According to Cryptopolitan, FTX relocated its headquarters to the Bahamas last September. Its CEO Sam Bankman-Fried attributed the relocation to a “progressive and forward-thinking crypto bill” that would regulate the industry in the country.

Crypto industry developments in the Bahamas

In October 2020, the Bahamas became the first country to implement a CBDC completely. The Sand Dollar’s digital currency got designed to increase financial inclusion in the archipelago nation. FTX, one of the world’s largest cryptocurrency exchanges, has established a Bahamian subsidiary and expanded to the country in September 2021.

According to the whitepaper, the government claimed that its digital assets approach is based on successful examples from other countries, such as Gibraltar, France, Switzerland, and Liechtenstein. Also, The Bahamas studied current and planned legislation in countries like the United States, the United Kingdom, the European Union, Dubai, Singapore, Japan, and Australia.