Country overview

#58
Puerto Rico

Country stats

Rating Points
218
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
0%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
0
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
180
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
0
Total amount of crypto users out of the country's total population based on public data.
Taxation points
18
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
0
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
Legally allowed
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Moderate danger
The overall level of security in a given country based on open data.
Crypto Salaries
Legally allowed
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Good
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Basic
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
ICO/STO
This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.
Cryptofund
This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.
Good
Medium
Bad
intro

This is general info about crypto regulation in Puerto Rico. A more precise overview will be published later. However, if you find any inaccuracy or have other feedback - please write us in telegram @ilya_ii or by e-mail - editor@cryptopenetration.com

Puerto Rico is a commonwealth (1) ruled by US authority. It has a status of unincorporated territory of the United States. It has a common army, citizenship and currency with the U.S. At the same time Puerto Rico isn’t legally a complete part of the United States. It has its own constitution (2), legislative power, judical power and executive power. The U.S. Constitution applies to Puerto Rico, but not completely.

According to Wikipedia (3) Puerto Rico has 3,221,789 population and total area of 8,897 km2. There is no digital nomad visa program in Puerto Rico and to visit this territory you need to get the U.S. visa except for citizens of countries like Canada, which don’t need U.S. visa to enter.

Security level

  Based on Travel Lemming (4) and ViaHero (5) reviews of Puerto Rico we define this jurisdiction as a moderate danger security level.  

Crypto Payments

Based on the U.S. IRS guide crypto payments are legal in the country. This means that they are legal in Puerto Rico.

Crypto Salaries

Based on the U.S. IRS guide crypto salaries are legal in the country. This means that they are legal in Puerto Rico.

Legal

Crypto entities operating money service business (MSB) with crypto must be registered by FinCEN and local Office of the Commisioner of Financial Institutions (OCFI). This information is based local OCFI notice letter (6) and the term “money service business” refers to crypto exchanges, custodians, crypto ATM providers.

Taxation

Puerto Rico residents pay most U.S. taxes. You may find information about taxation in the United States in Crypto Penetration guide (7). However, based on EisnerAmper (8) there are special tax exemptions for U.S. citizens living in Puerto Rico - they don’t pay federal income tax on capital gains, also this refers to interest and dividends from local sources.

Based on taxation guide (9) IRC §933 lets people living more than 183 days in a year on this territory may exclude their income from federal PIT taxes too.

According to Coindesk (10) export crypto services and staking providers pay only 4% corporate income tax.

Based on Tokentax (11) to become Puerto Rico “bona fide resident” and get these tax exemptions U.S. citizens need to spend on other U.S. territories less than 90 days per a year.

Links

1)👉🏻Political Status of Puerto Rico WIkipedia 

2)👉🏻Constitution of Puerto Rico Wikipedia

3)👉🏻Puerto Rico Wikipedia

4)👉🏻Is Puerto Rico Safe for Travel? Travel Lemming

5)👉🏻Is Puerto Rico Safe? Via Hero

6)👉🏻 Notice Letter OCFI

7)👉🏻 US Crypto Penetration

8)👉🏻 Is relocation to Puerto Rico a right move for you? EisnerAmper

9)👉🏻Tax Weary Americans Find Haven in Puerto Rico Tax Consultant

10)👉🏻Puerto Rico Extends 4% Tax Incentive to Crypto and Blockchain Activities

11)👉🏻Puerto Rico Crypto Tax Token Tax