Justin Cole: Barbados Rises an Attractive Market for Crypto Investors

Cole spoke about why the small country is attractive to investors, discussing its low sales tax rates and digital financing options.

This year has seen the emergence of Barbados as a hot spot for crypto investors to consider. Case in point, in February, the Barbados Stock Exchange partnered with Toronto’s Blockstation to develop a platform to list crypto assets and security tokens, offering a new jurisdiction and method for investors and firms to raise money.

As alternatives for issuing a security token or coin vary from jurisdiction to jurisdiction, many companies can face roadblocks or infractions as a result of improper listings. For example, in June, the US Securities and Exchange Commission (SEC) fined Kik Interactive for conducting an ineligible US$100 million initial coin offering (ICO) in 2017. Kik Interactive sold one trillion Kin tokens without adequately registering the offer and sale of the assets. 

Tax laws also have an effect on ICO offerings. In Japan, for example, companies that list ICOs are subject to over 50 percent in taxes. The number of jurisdictions that issue ICOs are few in number. As of late 2018, there were at least 10 jurisdictions where ICOs were permitted: Switzerland, Gibraltar, Singapore, the US, Thailand, Israel, France, Malta, Russia and Estonia/Lithuania.  


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At the Blockchain Futurist Conference in Toronto, Justin Cole, vice-president of management services at DGM Services, spoke to the Investing News Network (INN) about the regulatory environment for security token and coin listings in countries such as Barbados. Cole spoke to INN about why the small country is attractive to investors, discussing the low sales tax rates coupled with a digital financing route. 

The interview has been edited for clarity and brevity. Read on to…

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