Countries like Japan are set to receive significant growth from the adoption of the cryptocurrency ecosystem due to the various revenues found in the system. Surprisingly, even those that don’t embrace the cryptocurrency can benefit as well.
As Bitcoin and other alternative cryptocurrencies have taken off in the year of 2017, they’ve been met with different opinions and thoughts by various nations, but nations that have taken a progressive stance towards them are likely to benefit more from the booming sector.
As the U.S was able to realize long-term benefits from their Silicon Valley internet companies providing tax breaks and other benefits to subsidize the internet economy in the 1990’s and the years that followed, countries that embrace cryptocurrencies may also benefit more from such growth.
The market of cryptocurrencies have experienced significant expansion in their market capitalization over the course of this current year and seek to continue to boom in the years that follow. The market capitalization of the cryptocurrencies will continue to grow from where it’s sitting at, currently $608,391,640,423, according to coinmarketcap.
What’s sorts of ways can the burgeoning ecosystem boost nations like Japan?
The first aspect where governments like Japan will be able to benefit is through that of taxation.
The tax man of many nations have started to investigate the sector of cryptocurrency, and they are looking to gain their share of the crypto pie.
The Internal Revenue of Service of the United States, a country that has been, for the most part, rather silent on the aspect of cryptocurrencies and stances in regards to the regulation of the sector has stepped up their demands for traders who have gotten gains from the market. The Internal Revenue Service of the United States has requested that Coinbase, one of the largest exchanges in the United States, to turn over the names of over 14,355 individuals who have “moved over $20,000” on the platform.
Japan, for its part, has treated Bitcoin with a more friendly manner, as they have taken actions to minimize taxes for the consumption of Bitcoin, removing the liability to pay these taxes, thus spurring more activity in this market.
India’s tax man is stepping it up and conducting investigations with their cryptocurrency exchanges to make sure that they can gain what they believed is owed to them.
Countries like Japan and Belarus who are easing up on taxes or eliminating taxes for the cryptocurrency industry may be doing so because they want to invest in the emerging sector for the long term, thus realizing more significant gains.
Digital Asset Seizures
The second aspect of benefit for countries is from seizures, countries like Bulgaria and the United States have benefitted by the seizure of these digital assets. In some instances they have sold these currencies off through auctions, thus retaining the proceeds from the sales. Bulgaria, in it’s latest seizure, is reportedly sitting on a significant amount of Bitcoin (worth $3 Billion), an amount that significantly reduces the debts that the country owes.
It seems that countries that are opting to decline to levy taxes on the cryptocurrency industry may benefit by attracting many companies to their country and bring jobs and create multiplier effects for their local economies. As these blockchain oriented startups seek to grow and bring their intangible visions into the realm of the tangible, they will be hiring targeted people to assist them and bring their plans to fruition.
“Bitcoin- and blockchain-related jobs on LinkedIn have risen roughly 306% in the 12 months ending mid-November.”
Increased employment is a boon to economies in more ways than one, (income taxes, wages spent locally at restaurants, shops, and more).
Countries like Japan and Belarus will be able to benefit as they have paved the way for various participants in the ecosystem to be treated kindly.