Visualizing the Offshore Tax Havens Used for Bitcoin Transactions
The Brilliance | The Dilemma | Tax Havens
Security and anonymity are some of the most valued elements of cryptocurrencies. This benefit has been notified by those seeking a safe place for their money away from authorities. Nearly two thirds of all Bitcoin transactions in 2021 took place in tax havens and countries with low Know Your Customer (KYC) standards.
Seychelles, the archipelago island paradise off the coast of East Africa, accounts for almost half of the world’s Bitcoin transactions, likely for the country’s favorable tax treatment and ease of governance when setting up foundations.
The amount of bitcoin transactions either being sent to or from tax sheltering countries has been increasing year-over year.
Percentage of transactions to/from tax havens
2017 – 49%
2019 – 56%
Q1 2021 – 63%
Countries with significant black markets like Russia, China, and Mexico tend to send many more bitcoins than they receive, a potential sign of new age money laundering.