If you are a businessperson looking to start a business in a tax friendly environment, then you are probably familiar with Montenegro, which is a popular tax haven many corporations look to. Lately the South Eastern European country is also on the radar of crypto and blockchain enthusiasts looking to set up shop. Currently there are several exchanges based in the country with LocalBitcoins leading in popularity having traded over 1000 BTC in the past month.
Montenegro has been a pioneer in creating a legal regime in favor of crypto and blockchain development. Even before El Salvador and the Central African Republic, the Montenegrin Parliament passed a law recognising bitcoin as legal tender in 2018. The country has since launched a national blockchain strategy.
In comparison, Uganda’s laws have been outrightly hostile to crypto currencies. More recently, the Bank of Uganda issued a circular to all payments licensees in Uganda to desist from facilitating cryptocurrency transactions. Such prohibitive laws and policies deter investors that are affiliated to blockchain, and this could potentially cut Uganda out from reaping from the growing trend at its inception.
Other than the regulatory framework on crypto, Montenegro has a favourable tax regime which for years has pulled corporations to the country. In order to open up the economy and encourage investment, personal income tax has been set at 9% by the Government. Further, Income above the average has an 11% income tax levied on it.
According to PC Tech magazine, the latest trends in bitcoin trading in Montenegro include margin trading, which is borrowing money from a broker to trade bitcoins and the use of derivatives which are financial instruments that derive their value from underlying assets such as stocks, commodities and currencies. A national digital currency is also in the works.
The increasing use of bitcoin by businesses as a payment method is also encouraging bitcoin trading in Montenegro. There are also a multitude of bitcoin ATMs that have cropped up in the country. This has spiked the interest in crypto currency within the country. Another factor attributing to the success of crypto in Montenegro that is impossible to ignore is the political and economic stability of the country.
The growing interest in the crypto trend within Montenegro is hard to ignore. With more and more companies establishing themselves in the country, it is only a matter of time before Montenegro is one of the major centers for Bitcoin trading.