Bitcoin News Today: Governments Worldwide Tighten or Eliminate Golden Visa Programs Affecting Crypto Investors

Governments worldwide are increasingly tightening or eliminating "golden visa" programs that allow wealthy individuals, including cryptocurrency investors, to obtain residency or citizenship in exchange for significant financial investments. These programs, which often require investments in real estate, government funds, or local businesses, have long been a tool for nations to attract foreign capital and talent. However, mounting concerns over corruption, economic imbalances, and misuse have prompted regulatory overhauls.

The European Union has taken a notable stance. In May 2023, the EU court ruled Malta’s Exceptional Investor Naturalisation (MEIN) program illegal, citing the commercialization of European citizenship [1]. Cyprus and Bulgaria also terminated their programs in 2021 and 2022, respectively, following similar scrutiny. Spain’s government canceled its golden visa program in April 2023 due to soaring housing costs linked to foreign investment [1]. Since 2020, at least nine countries—including the UK, Ireland, the Netherlands, and Malta—have scrapped their schemes.

Crypto investors, who often seek jurisdictions with favorable tax and regulatory environments, have been particularly affected. Nations like Portugal, once a crypto-friendly hub, are tightening eligibility criteria for golden visas. Alessandro Palombo, co-founder of Bitizenship, an advisory firm linked to Portugal’s program, noted, “Portugal is moving toward more restrictive policies, including tightening residency and citizenship eligibility” [1]. This shift reflects broader concerns about money laundering and the integration of wealthy non-residents into local economies.

While some programs have evolved to incorporate cryptocurrency, the trend toward stricter regulations persists. Portugal’s Bitcoin Eco Golden Visa allows investors to gain residency by investing in a fund tied to Bitcoin and local companies. Similarly, El Salvador introduced a 2023 law offering citizenship to those investing $1 million in Bitcoin or Tether (USDT). Italy is also exploring crypto-linked residency options, such as a golden visa route requiring a 250,000 euro investment in a Bitcoin startup [1].

However, enthusiasm for crypto-based golden visas has sometimes outpaced regulatory clarity. In July 2023, the TON Foundation, a blockchain project linked to Telegram, prematurely announced a UAE golden visa program offering residency for a $35,000 fee and $100,000 in staked assets. The UAE government swiftly denied the claim, clarifying that it had no involvement in the proposal [1]. The incident highlights the challenges of balancing innovation with regulatory oversight.

Critics argue that golden visas can destabilize local markets and incentivize corruption. For example, Bulgaria’s program faced allegations of enabling money laundering, with primary beneficiaries from China, Russia, and the Middle East [1]. Spain’s decision to cancel its program underscored how sudden influxes of foreign capital can drive up housing costs, alienating local residents.

Despite these risks, proponents of golden visas emphasize their potential to stimulate economic growth. Palombo noted that such programs create a “mutually beneficial exchange” where countries gain investment while investors secure residency and mobility [1]. Yet, as geopolitical tensions and economic pressures mount, the appeal of these programs is waning.

The future of golden visas remains uncertain. Palombo warned that “what’s possible today may become legally impossible within months or weeks,” reflecting an accelerating trend toward stricter controls [1]. With over a dozen countries having already phased out their programs, the window for crypto investors seeking alternative citizenships is narrowing.

Source: [1] [Golden visas are shrinking for crypto investors] [https://cointelegraph.com/news/golden-visas-shrinking-crypto-investors]