Country overview

#91
US Virgin Islands

Country stats

Rating Points
155
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
1%
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
120
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
800
Total amount of crypto users out of the country's total population based on public data.
Taxation points
30
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
Safe place
The overall level of security in a given country based on open data.
Crypto Salaries
No info
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
No info
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
No info
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.
Good
Medium
Bad
intro

This is general info about crypto regulation in the US Virgin Islands. 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

US Virgin Islands - US-owned part of the Virgin Islands. The total land area of the territory is 133.73 square miles (346.36 km2), population is 87 146. The territory's capital is Charlotte Amalie on the island of St. Thomas according to Wikipedia (1).

Security level

Based on Numbeo crime rating (2) this jurisdiction has 61 from 100 points of crime rate. That’s why we define this place as a moderate danger security level according to our rating.

Crypto Payments

In the US, crypto payments for businesses are legal and taxed at their nominal dollar value. The US Virgin Islands, as an overseas American territory, will most likely have the same regulation. 

Crypto Salaries

In the United States, salary payments in cryptocurrency are legal and are taxed at their nominal dollar value. Most likely, the US Virgin Islands as an overseas American territory have the same regulation. 

Legal

Crypto providers can legally operate in the US Virgin Islands and obtain a money transmitter license there under Title 5 of the Virgin Islands Code, Chapter 22, Subchapter II. This is a money transmitter license, the position of the Virgin Islands Banking Board regarding the licensing of entities providing cryptocurrency services according to Bulletin 2022-01 (3) (the regulator is The Office of the Lieutenant Governor, through the Division of Banking, Insurance, and Financial Regulation), 

Regulation procedures for VASPs based on the Money Transmitter License are similar to regulation in the mainland USA, where cryptocurrencies are legal but there is still no federal law regulating cryptocurrencies. According to Cointobuy’s analysis (4), the crypto-related activity in this country has a 2.8/10 safety rank. Also, Cointobuy has ranked the United States Virgin Islands in position 107 out of 249 countries in terms of cryptocurrency safety.

Taxation

The United States Virgin Islands (USVI) is a territory of the United States. And, since it is a territory, the USVI and IRS tax rules are entwined (and the USVI rules are considered to ‘mirror’ the United States Tax system) based on Irstreamlined procedures (5). 

Some US Persons who reside overseas in the Virgin Islands and qualify as fide residents may only be required to file tax returns in USVI if they do not have U.S.-sourced income. In general, and based on the USVI tax rules (similar in concept to other possessions and territories), a Taxpayer may obtain a significant tax benefit if they can prove that they are considered a fide resident of USVI based on Golding lawyers (6).

Undoubtedly, the IRS often challenges individuals' classification as bona fide residents of a territory or possession, causing headaches for taxpayers. Nonetheless, in Sanders' case, victory was claimed in tax court against the IRS based on the Case description (7).

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