Country overview

#56
Marshall Islands

Country stats

Rating Points
190
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
Empty
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
150
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
500
Total amount of crypto users out of the country's total population based on public data.
Taxation points
35
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
No info
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
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
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.
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.
Fintech
This indicator means that in a given country, companies with fintech licenses (financial services) can legally transact with crypto assets and the country has appropriate licensing procedures.
Good
Medium
Bad
intro

This is general info about crypto regulation in the Marshall 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

The Marshall Islands is a state in the Pacific Ocean, in Micronesia, associated with the United States. According to Wikipedia (1), its area is 181 km2, and its population is 64,000. Based on Quora (2), this country has the status of a freely associated state with the US. The US provides for its postal service and military defense. However, Marshall citizens and residents have no privileges in the field of immigration to the US.

A short-term visa to visit the country is required for most visitors except US&EU citizens, citizens of some other countries including Palau, Micronesia, Taiwan. Based on VisaHQ (3) there are 2 types of tourist visa to Marshall Islands including: e-visa and visa on arrival. Tourist visa has a 30 days duration, but it’s possible to extend it up to 90 days.

According to Golden Visas (4) basic immigration grounds to the island include family reunification and employment. And there is no residence program to investors. Also there is a business visa program up to 2 years according to RMI immigration office (5).

Based on Wikipedia (6) to get citizenship by naturalization an applicant needs to live in the country for 10 years.

Security level

The Marshall Islands has a safe place security level according to our rating. In Numbeo crime rating (7) it has only 24 crime points from 100. Homicide level (8) is 4 per 100,000 inhabitants a year.

Crypto Payments

Since the Marshall Islands is an associated territory of the United States, crypto payments can be legal based on IRS notice (9). However, we have no confirmation of this thesis. Please, contact with us, if you have information about legal status of crypto payments in this jurisdiction.

Crypto Salaries

Crypto salaries can have the same legal status based on the hypothesis above. Please, contact with us, if you have information about legal status of crypto payroll in this jurisdiction.

Legal

The term cryptocurrency (as virtual asset) is defined in the Banking Amendment Act (10). Financial Service Provider License of Marshall Islands includes a category virtual asset service provider (VASP) and includes the following licensed VASP activity:

-exchange between virtual assets and fiat currencies

-exchange between virtuals assets

-transfer of virtual assets

-safekeeping of virtual assets

-issuance or sale of virtual assets

According to Bitcoin.com (11), the island nation has already established a special regulation framework for DAOs. Special entity MIDAO Directory Services Inc. provides (12) DAO registration services in the country giving them an LLC status similar to DAOs in some states of the US, like Delaware. There is a registry of DAO entities registered on the island.

Marshall Islands also had a plan to launch CBDC (13) in cooperation with Algorand blockchain (14). The CBDC is called Marshallese Sovereign (SOV). However, the IMF has issued a warning (15) against this program in 2021.  

Taxation

Based on GSL (16) the headline PIT rate in this country is 12%. Headline corporate tax rate is 3%.