Crypto remuneration is gathering steam around the world. At the moment, paying wages in decentralized digital coins is normal within the crypto industry. There is however no reason why this can’t be the case in other industries as well. A few crypto friendly countries are beginning to see crypto remuneration take root even in industries outside the crypto community.
Switzerland is a well-established crypto friendly nation and is seen as a model by countries who share a similar ambition. This has not gone unnoticed since many crypto organizations and companies have set up shop in the country. The Swiss crypto Silicon Valley centered in the canton of zug has become a hub for companies and developers in the space. Companies such as shapeshift, Bitmain, the Ethereum Foundation, Xapo, and most recently the Libra Association, have all touched base in Sweden.
Switzerland, which was once regarded as the Mecca of geopolitical neutrality and financial privacy has seen that reputation undermined over the years due to pressure from powerful players such as the EU and US. The country sees crypto as an opportunity to restore that reputation, and it has grabbed it with both hands. Unlike most nations which are still fidgeting around with crypto regulation, Switzerland has regulated the industry and that includes taxation as well.
Switzerland is no doubt the leader when it comes to creating a friendly environment for crypto enterprise. Other crypto friendly nations though are quickly catching up. One such nation is Estonia. The Baltic nation is considered one of the most digitally advanced societies in existence, with company’s often partially compensating employees with cryptos and tokens. Estonian legislation even provides for the taxation of cryptocurrency income. The Baltic nation just recently granted a crypto trading and custody license to a giant German Bank.
New Zealand is also quickly closing-in on countries like Switzerland when it comes to providing a crypto vibrant environment. The tax authorities in New Zealand recently deemed it legal for businesses to pay their employees in Bitcoin. Companies in the country will now be able to withhold tax on income payments under the existing Pay-as-you-earn schemes just like those of regular Fiat Currencies.
The New Zealand tax authorities also did insist that wages had to be paid in coins that can function as currencies which is meant to protect employees from being remunerated in illiquid assets. The tax agency listed several cryptos that fit the criteria. These include Bitcoin cash (BCH), Bitcoin core (BTC), Bitcoin Gold (BTG), Ethereum (ETH), and Litecoin (LTC). The revenue department also sees stablecoins such as Tether (USDT) as alternatives that can easily be converted to fiat.
Since the crypto industry is not restricted to boundaries and cryptos significantly improve the speed and reliability of cross-border payments, cryptos are being increasingly accepted all across the world. It is quite conceivable that more and more countries will regulate the use of cryptos for remuneration.
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