Crypto assets

LEGAL NOTICE ▶︎ The European Parliament, in its morning session of March 19, 2024, exceptionally approved a new set of harsh rules to crack down on cryptocurrencies and their custody. This includes an immediate and already regulated ban on transactions exceeding €3,000 and the storage of any cryptocurrency in self-custody wallets. In practice, it bans the ownership and maintenance of addresses and wallets such as Metamask, Phantom, etc.

It is essentially a ban on the entire DeFi ecosystem. Legal persecution occurs in terms of non-compliance with AML and AMLR, KYC and brings to the legislators of all European countries and the material executors of the new regulations (tax authorities, postal police, finance, etc.); the legal and hardware tools to infiltrate, trace, report, deprive the owner of liberty and seize the crypto assets present on Metamask, Phantom and all self-custody wallets as well as all DeFi tokens and wallets and for those who transact over 3000 EUR of crypto in counter value without an AML justification (proof of funds).

These measures will also be implemented by banking institutions as obligated parties whenever crypto cash outs are received from exchanges (both DEXs and CEXs) regulated to operate on European soil or which can offer their services under license to traders with European residence.

In the absence of any other justification for remaining legally and tax-resident in Europe, today it is vital for those who own, invest and trade cryptocurrencies and make it a matter of work, investment and life, as well as operating according to a Geo -Arbitrage , to take up residence in a crypto-friendly country like Paraguay or Panama or Mexico.

It is essential to learn the legal crypto cash out techniques that allow you to avoid paying taxes on capital gains and not declare the possession of the same cryptocurrencies legally held under another flag.

Since 2017, in Europe, holders of cryptoassets or cryptocurrencies, whether BTC or complex tokens, have been required to declare and pay taxes upon cashing out. Capital gains taxes are paid, and ownership of cryptocurrencies held in exchange accounts opened with Italian tax residence must be declared. Therefore, with every crypto cash out or crypto cash out, Italian residents must pay taxes.

When a resident of a high-tax, OECD-registered tax regime owns undeclared cryptocurrencies, he or she must necessarily take up tax residency in a favorable tax regime that is composed of territorial taxation, not a member of the OECD, and that has parameters suitable for crediting the cash out without financial transmission of the transaction to the tax authorities of origin and local tax authorities.

In this regard, we strongly recommend contacting our firm to discuss the most appropriate advice for your case. There are crypto cash-outs of BTC and cryptocurrencies that, if performed incorrectly by compromising one or more factors and intermediate steps before liquidating a FIAT account, risk needlessly alerting the tax authorities of origin.

The guide below attempts to help you understand how anyone living in Europe can legally and worry-free cash out of cryptocurrencies without being legally warned/sanctioned by their local tax authorities.

Crypto assets are defined as all cryptocurrencies and cryptographic tokens available for buying, selling, and stacking. These are intangible assets that effectively function as currency assets capable of generating economic profit expressed in FIAT currency values in the national currency of the market in which the asset is traded. When the digital asset is sold, these fiat values are called crypto cash out. Crypto cash out therefore generates an asset, a current capital in FIAT currency, which is deposited on the same exchange and can be transferred to a bank account. Crypto cash out therefore generates a FIAT value that is taxable under OECD laws.

Therefore, a crypto asset or crypto asset in itself is understood to be an asset that acts as a currency reserve both in its own intrinsic value as a token, which matures and generates interest in its own denomination, and in terms of FIAT currency thanks to its free convertibility into the value corresponding to the reference FIAT currency.

Therefore, cryptocurrencies or crypto assets are legally subject to taxation like any other currency asset because they generate capital gains and taxable earnings, especially when staked in certain jurisdictions or liquidated following a crypto-to-FIAT cashout. Therefore, the many crypto asset or cryptocurrency "Hodlers" today must comply with the rules of their country of residence for tax reasons or legally evade them by appropriately changing their residence. This is where we come in.

Yes. The short answer is that you have to pay taxes on every crypto Cash Out. But in this section we explain how through our services you can legally avoid paying taxes by moving through the laws.

Many cryptocurrency investors in Italy wonder whether it's possible to legally avoid paying taxes on cryptocurrency capital gains. The answer, under certain conditions, is yes. The key lies in tax residency and managing funds through foreign accounts, such as in Panama or other countries with territorial tax regimes.

• Change of tax residence (only if you live outside Italy) : registration with AIRE and proof of residence abroad for more than 183 days per year

• Absence of center of interests in Italy (Only if you live outside Italy) : no domicile, principal activity or predominant economic ties in Italy.

• Accounts and transactions outside of Italy : avoid Italian banks or exchanges with a permanent establishment in Italy.

• Residence in a country with territorial taxation : Panama, but also other similar countries and updating documentation on exchanges

Transferring Bitcoin and crypto abroad to pay zero capital gains tax on crypto cash-outs remains a convenient option for traders with tax residence in Italy and Europe subject to the MiCA. Securing crypto assets in Panama or Paraguay is particularly important for trading and cash-out freely and without worries.

But how can you transfer bitcoin and cryptocurrencies abroad if they are already on the blockchain and only deposited at hardware wallet addresses or exchanges?

How to transfer Bitcoin and crypto abroad

The perfect strategy for avoiding taxes on cryptocurrencies and Bitcoin when cashing out is to change your tax residency and register your domicile on your personal documents.

Simply transfer your tax and personal residence registered with these exchanges without physically or digitally moving any cryptocurrencies. It's also one of the best ways to protect your crypto assets from MiCA and RW reporting for non-Italian/European exchanges.

To transfer the value of your cryptocurrencies abroad, along with the obligations associated with their ownership and cash out, simply acquire residency in Panama and open an account with a Crypto-Friendly Panamanian bank. Then, with your new details, change your documents on the exchanges and cash out into the crypto-friendly Panamanian bank account that we will open exclusively for you if you are a crypto trader or holder.

Pay zero taxes on capital gains from cryptocurrencies

During the Covid-19 pandemic, cryptocurrencies have proven to withstand the harsh blows of the real economy and to support an inflation-proof return on investment, regardless of the dumps that physiologically follow one another over the years.

Those who invest in cryptocurrencies have a significant time and financial advantage over those who invest equivalent amounts in other assets. During the worst moments of the global economy due to the pandemic, cryptocurrencies performed at their best, reaching new ATHs and establishing Bitcoin, much protected by maximalists, as the undisputed king of all cryptocurrencies.

Therefore, many investors have made substantial profits but don't know how to use them, exploiting them now that the costs of other real assets are generally skyrocketing. Cashing out, in fact, imposes certain financial and tax regulations that can severely strain an investor's wallet if they cash out cryptocurrencies; this is often done with an inappropriate tax residency, such as any Italian or European tax residency.

So how do I pay zero taxes on cryptocurrencies? Do I have to declare my bitcoin and cryptocurrencies to the tax authorities above a certain amount, or do I have to declare my capital gains made through exchanges or by holding cryptocurrencies in wallets? Do I then have to pay taxes on capital gains from cryptocurrencies? Is cashing out BTC and cryptocurrencies tax-exempt?

Bitcoin, Blockchain, Cryptocurrencies and Defi , Cryptocurrency Staking and NFTs, burst onto the world stage from 2008 onwards, when the online publication of a pseudonymous white paper provided a vision of a new way of transferring value over the internet.

In the past decade since then, the cryptocurrency market has gone through all the classic phases of a disruptive technology: massive bull markets and crushing pullbacks, periods of euphoria and moments of despair, FOMO.

As the cryptocurrency market enters its second decade, one thing is clear: cryptocurrencies are not going away. The cryptocurrency markets are approaching new all-time highs and many of the world's largest investors and financial institutions are involved. Cryptoassets are part of the whole galaxy of Coin assets that today are traded, held and used for commercial purposes and which are listed on CoinMarketCap.

The value of cryptoassets depends on the type of crypto held, the project it supports, the development team, the number of investors and investors who own it, and the cyclical ups and downs in which these assets experience market value.

The problem resulting from this panorama is the deregulation currently in place in this sector, which has opened the door to numerous entities offering cryptocurrency holding, investment, savings (crypto stacking), trading, sending, lending services with interest earnings on the sum lent (lending), etc.

From Apps to Brokers and Exchangers such as Kraken, Binance or Bitfinex, up to solutions such as HardWallet and finally institutional services such as Fidelity which hold some of the most used crypto assets. The inconvenience of navigating multiple technologies, not just the web, and relying on third parties for asset management is scary as it causes almost no regulation; the market and the sector are essentially built on collective trust.

Bitcoin, thanks to the upcoming Halving 2024 in April, to the encouraging inflow of capital into SEC-approved BTC ETFs, especially inflows into BlackRock and Microstrategy, with Michael Saylor still buying at a price of around 70k per BTC, has reached encouraging but high levels of value per coin in 2024, which undoubtedly highlight the current, rather unique market realities.

BTC ETFs appear to be the driving force behind the cryptocurrency's rise to a new ATH. But if so, could it be that the upcoming Halving appreciation has already been partially or completely absorbed by BTC's current price? And if so, are we on the verge of a much more aggressive reversal than the pre-FOMC dumps?

By asking the right questions, savvy investors might realize that part of their crypto assets could be withdrawn and require immediate cash out. Typically, at this stage, investors are already up and running, having obtained appropriate tax residency in countries where they must establish residency to protect their crypto cash out.

But many still don't understand that at this level, if you haven't already secured the necessary documents, you're seriously behind on the actions to take in the coming days. It could also be that the post-BTC Halving period is a springboard to new, unexplored values, but this would imply a greater likelihood of a sudden drop in the following days, weeks, and months. Having the right documentation and the right banks ready for this moment becomes crucial.

There are various ways to sell and cash out Bitcoin (BTC), Ethereum (ETH) and any other cryptocurrency you own.

Cashing out cryptocurrencies via an exchange is the most obvious and simplest option. An exchange is a platform that allows end consumers to access a cryptocurrency buying and selling market and also to purchase the desired token or cryptocurrency directly via credit or debit cards, bank transfers, or PayPal.

It's therefore logical that the most immediate, simple, and secure way to sell cryptocurrencies and cash out is through a cryptocurrency exchange. One option for selling BTC on an exchange is selling it as a stablecoin on an exchange and then withdrawing your holdings to a personal wallet outside the exchange.

You can also simply keep your funds on the exchange, although this has its advantages and disadvantages. A stablecoin is a digital asset pegged to the value of an underlying asset, typically a fiat currency, such as the US dollar. There are numerous stablecoins you can exchange your BTC for. Another indirect method of selling your BTC using the services provided by a cryptocurrency exchange is to spend them using one of the many cryptocurrency-focused payment cards on the market.

Remember that Exchanges require specific documents to open an account for you, and they must be translated into English. You can translate any document into any language including English, from an electricity, water or gas bill, telephone bill, bank statement, passport, identity card, tax code in less than 24 hours and send to the exchanges where you want to open the accounts. have all documents translated as they wish, using the translation service ▶︎ RushTranslate

Cashing out BTC through a sale to another person can be a widely used alternative method, especially in the past. Above all via specialized platforms (now many are closing like LocalBitcoins), or through a face-to-face sale with the interested party who will pay via bank transfer or PayPal or another method the BTC you want to Cash Out.

You can cash out BTC through a standard Bitcoin ATM. If you're in Panama, you'll be familiar with using BTC ATMs in shopping malls or commercial centers in Panama City. Bitcoin ATMs allow you to scan a wallet's QR code and then sell BTC for cash.

Bitcoin ATMs are found all over the world, and their locations can be easily found online. However, they typically charge high transaction fees compared to other methods. Furthermore, not all Bitcoin ATMs offer both buying and selling options, which is important to keep in mind when looking for a Bitcoin ATM to sell BTC at.

Essentially this Cash Out allows you to sell cryptocurrencies on an exchange and withdraw the sums via various banking methods. A common way to convert Bitcoin into cash is to withdraw the money to a bank account via wire transfer or automated transfer (ACH) after selling your BTC. You can also transfer money through the Single Euro Payments Area, or SEPA, which handles euro transfers

Tax residency and cryptocurrencies: tax authorities and taxes

The problem also arises of owning capital in cryptocurrencies and not knowing how to protect them from the tax authorities and how to reinvest them in the market, by purchasing physical assets with added value and with a determined ROI. Cashing out Bitcoin, Ethereum, Ripple, Defi etc. requires knowing well the rules of the tax authorities with whom we are interfacing, and of the banks we are depositing with and of the physical products and capital we are buying with the FIAT money received from the cashout .

Each crypto asset may or may not be subject to the scrutiny of the tax authorities of your tax residence and may or may not be treated as an asset, a speculative instrument, or currency. How? There are numerous products, primarily Private Interest Foundations (PIFs) acting as shareholders of an Offshore Company, which can conceal, protect, and invest both crypto assets and the fiat money resulting from the partial or complete cashout of virtual assets.

Then there's the accounting aspect and how to legally evade taxes to prevent the tax authorities from taking a cut of the proceeds and profits made from holding or trading crypto assets. There are numerous questions about this and few answers.

In this regard, we provide not only legal instruments but also ad personam consultancy for a fee. Contact us with your requests. Finally El Salvador became the first country in the world to have legalized Bitcoin as a real current currency in the country.

What cultural changes, above all economic and fiscal ones, will this decision lead to? How will the legalization of Bitcoin in El Salvador affect the tax policies of your country of residence? For those interested in applying for a residency as a Bitcoin Investor in El Salvador, contact us to find out how to start the procedure.

Tokenization of tangible and non-tangible assets in Panama

Panama has roared into a new era that no other country in the world has yet entered. The new law called Ley Cripto is present at this address.

Panama's cryptocurrency law permits and legalizes the use of cryptocurrencies such as BTC, XRP, LTC, ETH, XDC, EGLD, XLM, IOTA, and ALGO. These cryptocurrencies can be used as a replacement for the US dollar, the official currency of Panama. Panama has a unique feature that makes it economically secure from a sovereign perspective.

In fact, Panama is the only country in the world to have decided not to have an official currency. The Panamanian constitution clarifies that in Panama it is legal to use the currency or currencies or basket of currencies that the free market decides to use or that it decides to place trust in at a given historical moment in which they are used. In fact, the dollar did not enter Panama by anyone's will; it was simply the market that decided.

Therefore, Panama does not hinder the outflow of money or the inflow of currency in dollars or other currencies, relying solely on mutual trust between the market and therefore the people who make up the market, and the financial center of Panama.

Thus, it became simple and easy for Panama to propose a cryptocurrency law that isn't even a law, given the freedom to do what one wants in Panama with the currency one deems trustworthy. However, it was important not to raise doubts and create future doubts among investors and private individuals about the role of cryptocurrencies in Panama.

The law goes further and clarifies that any asset, whether tangible or intangible, can be tokenized. We at Studio Panama Italia have been proposing the tokenization of Panamanian companies for three years, but today we can tokenize real estate and anything else you desire thanks to the law in question that supports us.

This dynamic law inevitably opens up undeniable advantages for Panama, placing the nation at a completely different level of expertise in the field. To protect your crypto assets, tokenize them, or invest and tokenize new assets, we strongly recommend you take up residency in Panama and be guided step by step on your path to success in Panama by the best possible legal hands.

A Special Purpose Vehicle (SPV) is a company (legal entity) created for a specific and limited purpose, such as owning a particular asset or undertaking a specific project. These special purpose vehicles are used solely in financial and corporate transactions to isolate and protect the assets and liabilities of the underlying business from the rest of the company or from investors' other investments.

By creating an SPV, the sponsoring company can limit the financial risks associated with the project or asset, as well as achieve tax efficiencies, regulatory compliance, and other benefits. SPVs are often structured as limited liability companies or partnerships and are subject to specific legal and accounting requirements. So, how do special purpose vehicles relate to asset tokenization?

Tokenization of an asset is the reduction of the asset into units so divisible that they can be divided almost infinitely and therefore liquidated in an extremely rapid, certain and secure manner.

An SPV, being a separate legal entity that represents ownership of the underlying asset or assets, such as real estate, art, or other investments, can be created for the specific purpose of tokenizing them.

After incorporating the Special Purpose Vehicle (SPV), it issues digital tokens backed by the asset, which can be bought, sold, and traded on a blockchain-based platform. This process truly and legally tokenizes an asset, which is broken down into smaller, more liquid units that can be easily traded and exchanged.

The SPV ensures legal and regulatory compliance and helps ensure that asset ownership is clearly defined and recorded on the blockchain. Tokenizing assets in this way can help unlock liquidity, reduce transaction costs, increase transparency, and expand access to investment opportunities, especially for retail investors who may not have previously had access to such assets.

Through Studio Panama Italia , you will be able to open your Special Purpose Vehicle Company remotely without physical presence with tokenization purposes. assets and goods. We offer this service in jurisdictions at the forefront of the procedure, only where it is now regulated and practiced on a daily basis. Among these, Wyoming in the USA and Panama stand out. The cost of a Special Purpose Vehicle Company starts from 5000 USD.

Opening an offshore account with a crypto-friendly bank is possible. Studio Panama Italia offers offshore bank account opening with a major and renowned crypto-friendly bank in the Republic of Panama. Opening an offshore bank account with a crypto-friendly bank is uncommon.

There are very few banks that allow you to link cryptocurrency addresses and deposit assets like BTC there, managing them directly like any other ordinary bank account linked to a traditional account between which you can make transactions.

In Panama, we can introduce you to a major banking institution in the country that opens hybrid crypto and regular bank accounts where you can insure and deposit and therefore actually legitimize once deposited your crypto assets so that you can actually convert them into FIAT currency if you wish, tax-free in the same bank account without any risk of seeing them blocked for any reason.

This type of crypto-friendly offshore bank account in Panama is strictly tied to your residency in Panama. Therefore, you must first obtain residency in Panama as an Italian with our firm to open an account with this bank.

How to protect cryptocurrencies safely? The protection of cryptocurrencies and crypto-assets not only involves the correct management of your virtual wallets, therefore in a conscious and mature manner, decide to always take:

• An offshore residence with territorial taxation in non-CRS countries for CashOut Cryptocurrencies such as Panama or Paraguay
• Open an offshore bank account with banking secrecy, of a personal type with that tax residence and it is better if the same account can directly receive crypto and make cash out (like a bank transfer) internally as a bank in Panama does for its residents and where we open accounts exclusively for those preparing to take up residence in Panama. This bank is currently the only one in a tax haven to allow the direct holding of cryptocurrencies and to sell them and make cashouts internally or to send or receive other cryptocurrencies. Contact us to be exclusive customers of this bank.
• Spend and reinvest cash out in countries where financial coercion tools such as Spesometro, Redditometro, Riccometro and CRS Analysis do not exist

But in addition to the above, according to the major crypto specialized newspapers, and according to sales statistics and finally according to reports by Hackers and specialized Hacking magazines, everyone must protect their crypto assets, when they cannot have a real offshore account in Panama, in a physical wallet, a Hardwallet.

The best hard wallet, Trezor, comes to our aid in this. Trezor offers the ultimate in security, accuracy, and state-of-the-art technology. It ships your hard wallets globally within hours of online purchase and with the world's leading couriers. Trezor offers various types of secure hard wallets.

Our customers are more likely to use the top-of-the-line Trezor Model T

There are also other models such as the Trezor Safe 3 and the Trezor Model One

The company's website also offers many other specific products for the security of large crypto sums with the knowledge of using the best product in the world

How are cryptocurrencies regulated in Panama? Are there taxes and duties on holding and trading cryptocurrencies in Panama? Panama has become a mecca for crypto startups worldwide. More than 15 crypto startups are founded every day, a higher average than the United States and Europe.

Crypto startups are also fully tokenized in Panama and operate in a completely tax-free environment. What does this mean? It means that if you invest in a Panamanian company dedicated to cryptocurrency trading, cryptocurrency arbitrage, cryptocurrency futures, or third-party fund management for reinvestment in cryptocurrencies, you won't need a license, pay taxes, or even maintain a book of accounts.

Panama is the only country in the Americas to guarantee this zero -tax whatever you or your company does with crypto assets (cryptocurrencies, crypto futures, NFts, Options, ETFs, Fund Management) but only as long as you take up residence in Panama which, as clarified on this site of ours, does not mean you are obliged to live there.

Panama offshore residency does not require you to live in the country and allows you, once resident, to start your own crypto business, or simply to trade and cash out crypto in Panama completely tax-free and, if necessary, take advantage of geographic arbitrage to live in another country where you can spend the proceeds of these activities, earning money at the exchange rate with the hard currency US dollar with which you will operate your transactions.

Residency in Panama therefore allows you to cash out crypto in Panama at a crypto-friendly Panama bank such as the Crypto Friendly Panamanian Bank where we at Studio Panama Italia are authorized to open bank accounts for our clients involved with crypto.

In Panama, therefore, no taxes are paid or declared on capital gains obtained from holding cryptocurrencies, cryptocurrency trading, cryptocurrency futures, Bitcoin ETFs and NFTs when these gains are generated by a person who has taken up residence in Panama and collects the capital gains and earnings in a Panamanian bank account.

How are cryptocurrencies regulated in Ecuador? Do they pay taxes to the Ecuadorian tax authorities? Ecuador is a dollarized country that allows cryptocurrency holdings, cryptocurrency trading, and cryptocurrency arbitrage. Trading as an individual in Ecuador does not require capital gains tax.

However, a company engaged in third-party trading and fund management pays taxes like a regular Ecuadorian company to SRI, the Ecuadorian tax office. To address the specific tax obligations of Ecuadorian citizens due to cryptocurrency transactions, it's important to consider the nature of the transaction: whether the cryptocurrency was received as compensation for mining, used as an investment instrument, or used as a means of payment.

The activities described, without being an exhaustive list, are the most significant transactions currently conducted using these cryptoassets. Article 8.126 of Ecuador's Internal Tax Regime Law lists income classified as Ecuadorian-sourced and, in its final paragraph, includes all other income earned by companies and individuals, whether nationals or foreigners, residing in Ecuador, including unjustified increases in wealth.

Income earned from cryptocurrency transactions, without being considered to fall within any other classification provided for by Article 8 of the aforementioned legislation, constitutes unjustified capital gains and must be taxed as such.

In this order, the difference in value between the purchase price and the transmission price of a cryptocurrency would be classified as extraordinary income taxed as an “Impuesto a la Renta” subject to taxation provided that the total ordinary and extraordinary taxed income received by the taxable person within a tax year, less refunds, discounts, costs, expenses, and deductions attributable to such income, exceeds the taxable base established in Article 36, letter a) of the Law on Internal Revenue,127 i.e., exceeds the value of $11,310.00 USD, for the year 2021.

Therefore, for its declaration, it must be considered that, under the current terms of the Ecuadorian Law in question, the generating event would not occur until the cryptocurrency, whatever it may be, is transmitted to a third party in exchange for the payment of its equivalent in United States dollars, since it is only at the moment the cryptocurrency is converted into its equivalent in dollars that the collection of the proceeds is verified pursuant to Article 2 of the Internal Tax Regime Law.128

What is the tax treatment of cryptocurrencies in Spain? Are taxes paid on cryptocurrencies in Spain? Spain has updated the regulations regarding the holding, trading, and arbitrage of cryptocurrencies, both as individuals and as legal entities.

Spaniards are required by law to declare any gains on cryptocurrency trading or holdings when cryptocurrencies are sold after being held and have increased in value.

The tax on earnings is 19% up to 6,000 euros, 21% for earnings between 6,001 euros and 50,000 euros, 23% between 50,000 euros and 199,999 euros, and 26% for all earnings above 200,000 euros. In this case, the Spanish citizen does not have to do anything because the automatic digital exchange of financial information between cryptocurrency exchanges and the Spanish tax authorities (Hacienda) is in force by law.

Circular 30 of 27 October 2023 underlines that all those digital representations of value or rights that do not fall under financial instruments are defined as crypto-assets. For natural persons, capital gains from crypto-assets are taxable at the same rate that is applied to financial assets (26%) provided that the income is not obtained in the exercise of business activities, arts or professions or as an employee .

The same capital gains are then taxed on non-resident subjects without a permanent establishment when the income is considered territorial, on non-commercial entities when this operation is not carried out in the exercise of a commercial enterprise, on simple and equivalent companies. It is clarified that "different income" (art. 67 TUIR) deriving from "activities carried out" in the territory of the State and from "assets" located in the same territory are considered to be produced in Italy.

Income earned by non-residents is therefore regulated if it relates to crypto-assets held in our country with service providers or intermediaries resident in Italy or at their permanent establishment if non-residents.

In cases where the crypto-assets (i.e. the keys that give access to them) are held "directly" by the subject via storage media such as a Hard Wallet, without the intervention of the intermediaries or service providers mentioned, the income is considered produced in Italy if the storage medium is located in the territory of the State and it is presumed that the income is produced in Italy if the person who holds the storage medium is resident there in the tax period of production of the income.

It remains mandatory for the taxpayer to certify the actual location of his Hard Wallet.

Are cryptocurrency assets taxed in the UK? Yes, they are. Regardless of whether you have cryptocurrency-derived earnings or income, you must submit them to HMRC by the deadline using the Government Gateway service using forms SA108 and SA100, otherwise you will face severe penalties from HMRC.

If you're a UK taxpayer, whether a citizen or a foreign resident, and you've traded cryptocurrencies, you must accurately report your cryptocurrency earnings and any other income. However, since most UK residents are taxed at source via their tax code, many investors have never needed to file a self-assessment tax return.

But it's mandatory for everyone, including foreign residents. Before you can report your cryptocurrency taxes to HMRC, you need to do the math. This means you'll need to calculate your cryptocurrency totals for:

• Capital gains from cryptocurrencies
• Capital losses from cryptocurrencies
• Income from cryptocurrency
• Any eligible expenses relating to your investments

This can leave UK cryptocurrency investors with lots of questions, such as how do you report money earned from cryptocurrencies to HMRC? Or what is the HMRC tax form for cryptocurrencies and what information does HMRC need about crypto assets?

The rules for reporting capital gains from cryptocurrencies in the UK are clear and simple:

• Report cryptocurrency capital gains and losses on: SA100 and SA108 Capital Gains Summary.
• Report cryptocurrency income in box 17 of your self-assessment tax return (SA100).

You can do all this online through the Government Gateway service, or you can file your self-assessment tax return using paper forms by mail. Please note that the deadline for postal self-assessment tax returns is October 31, 2023.

In the 2023 Spring Budget, the Chancellor announced that the government would introduce changes to self-assessment tax return forms and that investors would be required to report crypto assets separately. These new reporting requirements will not be introduced until the 2024-2025 tax year. Cryptocurrency trading in the UK is taxed.

So, if you exchange Bitcoin for Ether or any other cryptocurrency, you'll pay capital gains tax. HMRC considers these two separate transactions. Trading your asset, then exchanging it, is a disposal, just like selling or spending it. HMRC doesn't care whether you're using it to buy another asset, just that you're giving one away.

So, if you make a profit, you'll pay capital gains tax on the asset you own. Even buying crypto with stablecoins is considered buying crypto with crypto, regardless of the asset.

Cryptocurrency taxes are paid in India. At Studio Panama Italia, we receive a huge number of clients from India and inquiries from new users there. Cryptocurrencies and India don't mix well. India has passed one of the most stringent cryptocurrency tax laws in the world.

The India Financial Bill 2022 follows the same trend in gambling regulation. The Finance Act amended tax rules to impose a 30% crypto tax on holdings and transfers of digital assets. Furthermore, traders cannot offset their losses against profits, and each trading pair will be considered independently for tax deductions.

A 1% withholding tax is also being introduced on every single transaction. This is why so many Indian citizens in Panama are doing everything they can to take up residency in Panama and open an account in a specific crypto-friendly bank, where we can also open accounts for new Panamanian residents from India.

We therefore advise future clients from India to contact us and start the residency process in Panama to benefit from free cryptocurrency cash out and zero taxes in Panama.

The largest cryptocurrency market in the world remains the United States. The United States is particularly strict when it comes to cryptocurrencies. Cryptocurrencies in the United States are heavily regulated and are subject to the greatest due diligence and AML scrutiny. Trading cryptocurrencies in the United States or owning cryptocurrencies in the United States requires a lot of intelligence and seriousness to then deal with the IRS rules.

Yes, you pay taxes in the United States on holding and trading cryptocurrencies. The United States classifies cryptocurrencies as capital assets. Taxes are paid when you buy, sell, dispose of, or derive capital gains from cryptocurrencies. Simply owning them requires you to pay taxes in the United States.

 The IRS has taken measures to ensure that cryptocurrency investors pay their taxes. Crypto consumers, crypto holders, and crypto traders must answer a question on Form 1040 regarding whether they received or sold a digital asset during the year. Exchanges are required to file a Form 1099-K for customers with more than 200 transactions and more than $20,000 in trades during the year.

In principle, in the United States, it is valid that any transaction carried out during the tax year must be declared and taxes are paid on it when the value of the same cryptocurrencies, held and never exchanged or sold, or exchanged for other cryptocurrencies or sold for FIAT currency or used to purchase a tangible or intangible asset, has generated a capital gain.

If you are an American or a resident of the United States and have a green card, or a residency, or have an SSN or ITIN, you are required by law to record your transactions and related gains and losses and accurately report them to the IRS every time you trade.

In the United States, income from cryptocurrencies is taxed as ordinary income at its fair market value on the date the taxpayer receives it. Here are the most common examples of what is considered cryptocurrency income in the United States:

Receive cryptocurrencies as payment for providing a service
Mine cryptocurrencies and earn rewards
Stack cryptocurrencies and earn interest on exchanges and any other platforms
Lend cryptocurrencies and receive interest payments (so-called crypto lending)

Declaring cryptocurrencies depends primarily on their actual geographic location. For example, if they're stored in a hard wallet, where is this hard wallet geographically located? The same goes for whether they're stored in a digital wallet or on an exchange.

If they are on an exchange, it is necessary to know whether or not the exchange is licensed in the country of tax residence of the taxpayer and where the hard wallets are located where the cryptocurrencies of this exchange's customers are stored.

To know where and how to declare cryptocurrencies and which form to fill out to properly declare them to your tax authorities, you need to know the starting values for those cryptocurrencies and whether you need to declare only capital gains, transactions, or both. The tax implications associated with cryptocurrencies also make the situation even more complex.

The tax authorities may define your activity as a natural person as a crypto-asset or simply set a tax rate based on a scale of values on your capital gains. All of this must be evaluated on a case-by-case basis. You can contact us for appropriate advice.

When each cycle approaches the ATH (All Time High) of a specific crypto value, we tend to plan well in advance and therefore prepare a series of organized and precise movements aimed at mitigating the problems inevitably linked to cash out from crypto .

You need to cash out crypto when you have a specific eligible tax residency (For example Panama or Paraguay)

You need to cash out crypto when you have suitable digital tools (crypto support software)

You need to cash out crypto when you have suitable physical instruments (hard wallets)

It is necessary to cash out crypto when the result is financially positive and not vice versa.

It is therefore necessary to organize a Crypto Cash Out Strategy aimed at allowing earnings while remaining in a safe haven on the tax and residence side.

Therefore, considering that all those who now make crypto cash out at this level all have a tax residence in Panama or Paraguay, through which to move completely tax free with the realization of capital gains, how should the capital earned be managed?

The Cash Out Crypto most used by our customers, considering about a thousand customers who have now optimized and secured their residence in Panama, is to cash out only in USD and not in Stable Coin.

In fact, customers prefer to cash out in USD because USD, not being a stable / cryptocurrency, cannot in the event of hacking of the exchange / wallet be transferred to any bank account that is not in the name and surname of the real beneficiary of that account who has previously registered a supporting account where to deposit the USD.

The cash out also becomes partial, a part in USD is withdrawn from your account to cover everyday expenses, the other is stacked on the same exchange, thanks to the high interest rates offered and thanks to the security that USD is not a stable coin that can be withdrawn by anyone who has hacked the account (in fact, a generic crypto address is enough since crypto addresses are not nominative to steal any stablecoin).

When you have to make crypto cash out, always do it in USD, never in stable coins.

Digital security for protecting digital assets is an important aspect of managing your digital assets. Digital security protects personal data online and on electronic devices. Digital security also protects your digital assets online and on electronic devices.

So digital security means all the methods and means used to protect any intangible asset, be it personal data or money, private messaging, crypto and other digital assets from theft, hacking, illegal copying, unlicensed use of proprietary software.

The field of digital security ranges from the protection of assets such as cryptocurrencies, to the protection of your PayPal account, or bank account as well as the protection of your account on forex or crypto exchanges. Digital security concerns your communication, such as using one messaging app rather than another (Telegram vs. Whatsapp for example, who would you rather be spied on by, the Russians or the Americans?).

Digital security extends to email, the most secure email service in the world today being Protonmail. Staying digitally secure also means browsing using a qualified VPN and using DNS servers like Open DNS or DNSdecrypt. Digital security involves actively protecting your website, including the hosting you use, whether you use a CDN like Cloudflare, and whether you manage WordPress plugin updates.

So when the topic of digital security becomes important and substantial, it's necessary to consider multiple aspects and weigh them against the pros and cons. One example is traditional approaches to protecting physical assets, which once again fall under digital security.

For example, if you want to buy a domain or a hosting service, or even create an online business, the digital protection of these assets such as:

• Web domain
• Website
• Website hosting
• Any digital payment methods (Paypal, Stripe, Payoneer, Venmo, Apple Pay, Google Pay), third-party services such as Cloudflare

passes through the creation of a traditional method of protection of classic and tangible/intangible assets such as an offshore company or private foundation which eliminates the risk of owning or opening such digital services in your name and surname.

If you are looking for definitive advice on the taxes to be paid on cryptocurrencies, on the taxes to be paid on previous crypto activities up to 10 years ago to today, if you want to be sure of what you need to do to get back into compliance and what the future next steps are for ordering , protect, profit and arbitrate your crypto assets, if you want to know clearly the names of the banks in the world where your cryptos are welcome, and the names of the banks in Panama and Mexico where your cryptos are safe and how bypass European laws and cash out crypto in Panama and abroad, contact us and request specialized paid consultancy.

The Markets in Crypto‑Assets Regulation (MiCA, EU Regulation 2023/1114) came into force between June 2023 and December 2024, imposing a strict and uniform regulatory framework for digital assets, stablecoins, crypto service providers, and exchanges within the EU.

Mandatory white papers, CASP authorizations, transparency, minimum capital, governance, anti-fraud, anti-money laundering, and supervision by ESMA and EBA. Within the EU, there's no joking around: if you operate in the European market, you must comply or you'll be left out. Authorizations and sanctions are not optional.

So how do you avoid MiCA through Panama? Panama offers:

• No closed crypto legislation like MiCA, no anti-privacy and anti-tax rigidity for taxpayers
  • Territorial taxation: if your earnings come from outside, zero taxes, always
  • You can incorporate a crypto company in 21-28 days, with a tax-free tax regime (0% on capital gains, dividends, offshore profits…)
• Panama City even accepts public payments in crypto (BTC, ETH, USDC, USDT), converting to USD on-the-spot thanks to an agreement with a local bank.

In the global cryptocurrency landscape, several news outlets have established themselves as reference points for investors, professionals, and enthusiasts. These aren't just blogs, but truly international editorial teams capable of combining timeliness, quality analysis, and regulatory insights.

• Cointelegraph is one of the world's most recognized publications, offering news, market analysis, and expert interviews, covering everything from technological innovations to regulatory developments.
• Coindesk stands out for its institutional focus and the quality of its investigations. It is widely followed by those working in the financial sector who seek in-depth analysis of the economic and political impacts of cryptocurrencies.
• U.Today is geared more toward a broader audience, with quick updates on tokens, exchanges, and emerging trends. It has a direct focus and often features news related to the most active crypto communities.
• The Block is a highly regarded publication among professional traders for the quality of its research and market reports, which are often used by investment funds and analysts.
• Decrypt combines technical and popular information, with clear articles and interviews with developers, entrepreneurs, and leading figures in the blockchain ecosystem.
• Bitcoin Magazine is one of the industry's historic publications, originally focusing on Bitcoin but now extending to the entire universe of cryptocurrencies and decentralized finance.
• Blockworks is aimed primarily at a professional audience, with a focus on macroeconomic trends, financial innovation, and institutional digital assets.
• Criptovaluta.it is aimed at the Italian market and users and is the most authoritative magazine in the Italian sector

These publications, each with its own editorial style, represent the most authoritative source of international crypto information today, a solid starting point for those who want to stay up-to-date and navigate a complex and ever-evolving market with expertise.

Cryptocurrencies, such as Bitcoin and Ethereum, represent an asset class with high potential and high volatility. Investing requires preparation, risk awareness, and the choice of secure instruments. This guide offers a quick but comprehensive overview to navigate the crypto market effectively.

1. Legality and Risks:
   Investing in cryptocurrencies is legal in Italy and the European Union if you use regulated platforms that comply with the MiCA regulation. The risk of loss is high, and you must protect yourself from scams and fraud. The success of a crypto cashout to a foreign account also depends on the success of your prior investment.

2. Necessary tools

• Secure internet connection

• Trusted device (PC or smartphone)

• Account on a regulated exchange

• Capital that you are willing to lose without compromising your financial stability

3. Investment methods

• Direct purchase and long-term holding (buy & hold)

• Staking to generate passive income

• Short-term trading (e.g. CFDs), suitable for experienced investors

4. Recommended strategies

• Accumulation plan (DCA) on solid cryptocurrencies such as BTC and ETH

• Diversification with a limited share in emerging projects

• Constant monitoring of the market and regulation

5. Choosing a Platform:
   Opt for reliable platforms with an intuitive interface, transparent costs, and risk management tools. A demo account can be helpful for practice.

6. Continuous Updates
   The industry is rapidly evolving: following qualified information sources, market reports, and regulatory updates is essential to protect and grow your investment.