Nansen CEO Faces Singapore Permanent Residency Rejection: A Look at Top Global Crypto Residency Destinations
- Dubai, Hong Kong, and Japan remain top choices for crypto executive permanent residency.
- Legal framework plays a critical role, with countries like Nigeria showing hostility toward crypto executives.
- Dubai and Estonia offer the quickest permanent residency options, allowing for near-instant market access.
The CEO of the on-chain crypto analytics platform, Nansen, had his Singaporean permanent resident (PR) application rejected despite accomplishing several high-level feats. This sparked a conversation on the best place to apply for PR worldwide.
Nansen CEO Alex Svanevik holds a Master’s in Science in Artificial Intelligence from Edinburgh, where the recent Nobel Laureate Geoff Hinton had his PhD. He also accomplished the following with the company:
- Raised $88 million in capital
- Created over 25 local jobs
- Gave birth to one child within the country
Svanevik revealed his wife was a PR, which pushed him to apply, wanting to settle in Singapore in the long term. When he was rejected, the CEO asked, “Where to move next?”
Top Crypto-Friendly Permanent Residence Hotspots
Applying for PR may be tricky, with the looming risk of rejection hanging. Crypto startups must remember this when incorporating their businesses, specifically for crypto executives wanting to be close to their businesses.
Certain factors, including the legal framework, capital requirements, application complexity, and availability of tech talent, must be considered when choosing a permanent residence or headquartering a crypto business.
Here are some crypto-friendly locations for permanent residency:
United Arab Emirates (Dubai)
Dubai is one of the most friendly nations for crypto businesses and permanent residences, with programs like its Golden Visa. This long-term residency visa in the UAE allows foreign talents to live, work, or study for 5 or 10 years with exclusive benefits.
For Investors, a 10-year visa can be obtained by investing AED 2 million, worth approximately $540 million USD, in a UAE investment fund or owning a company with a capital of AED 2 million. Applicants must also pay at least AED 250,000, worth approximately $67,500 USD, in taxes annually and prove that the capital is fully owned.
For Real Estate Investors, a 5-year renewable visa is available if applicants own property worth at least AED 2 million or purchase property with a loan from approved local banks.
For Entrepreneurs, a 5-year visa is available with a UAE-based project valued at AED 500,000, worth approximately $135,000 USD, or more. Applicants need approval from an auditor, relevant emirate authorities, and a business incubator.
Hong Kong
Hong Kong offers two business-friendly programs for permanent residents: Investment as Entrepreneurs and Capital Investment Entrant Scheme. The two options are designed to cater to business or investor personnel and allow them to live in the country long-term, according to Henley & Partners.
Investment as Entrepreneurs requires education in the relevant field, and applicants must establish or join a business that would contribute to the country’s economy.
The Capital Investment Entrant Scheme requires a minimum HKD 30 million investment, worth approximately $3.8 million USD, retained for at least seven years in Hong Kong. The applicant must also have net assets of over HKD 30 million in the two years preceding the date of application. However, the applicant will only be eligible for PR after seven years.
Hong Kong’s key benefits include being more business-friendly and having no restrictions on capital flows into and out of the country. It also has the necessary communications hub and technology infrastructure to support growing crypto businesses.
Japan
As one of the most technologically advanced countries, per Datapandas, Japan also offers a Special Highly Skilled Professional System, or J-Skip, Visa, which grants a PR in just a year while qualified holders to bring their parents and children.
Other requirements include:
- Master’s degree or higher and annual income of 20 million yen or more
- Ten years or more of work experience in the field they wish to work in and an annual income of 20 million yen or more
- Those with five years or more of practical experience in business management or administration and an annual income of 40 million yen or more
However, incorporating a crypto business in Japan may be more difficult, as evidenced by the small number of crypto companies with headquarters in Asia. The country is also known for its rigorous licensing process via the Financial Services Agency (FSA), high capital requirements, and taxation complexities.
Japan is still reviewing its legislation regarding crypto, which Bloomberg reports could potentially make the nation more friendly toward crypto companies, including by lowering taxes.
Singapore
Singapore is known as one of the best PR hotspots for crypto startups. The country is home to Ethereum founder Vitalik Buterin, Binance CEO Richard Teng, and Bybit CEO Ben Zhou who are likely there on PR.
However, as seen in the case of Svanevik, applying for PR may be tricky as there is still the risk of rejection, making it necessary for crypto startups to keep this in mind when incorporating their businesses.
Singapore is still often regarded as one of the most crypto-friendly nations, with companies like Binance Asia, Paxos, Crypto.com, KuCoin, and many others having their headquarters there.
Business executives and investors seeking PR in Singapore typically apply under the Global Investor Programme (GIP). To qualify, applicants must invest at least SGD 2.5 million, or around $1.8 million USD, in a new or existing Singapore-based business or a GIP-approved fund investing in local companies.
Additionally, the applicant must demonstrate a successful entrepreneurial track record, owning or being the largest shareholder in a company with an annual turnover of at least SGD 200 million, or around $146 million USD, in the most recent year or an average turnover of SGD 200 million over the past three years.
Other crypto-friendly nations include the following:
- Malta: Clear regulations and legal framework, making it beneficial to crypto companies.
- Germany: Recognizes Bitcoin as a legitimate medium of exchange and supports crypto regarding tax policies, treating it as private money instead of a foreign currency or asset.
- Estonia: Offers an e-Residency program and tax exemptions for specific crypto-related operations. It also has a favorable regulatory environment and provides legal clarity for cryptocurrencies.
- Canada: Cryptocurrencies are taxed on capital gains and treated as commodities instead of legal money. The country also has a strong tech sector, making finding talent easier for crypto companies.
Factors to Consider When Choosing a Country
Importance of Legal Framework
The legal framework is extremely important when incorporating a crypto business or considering residency as a crypto executive. Nigeria is a grave example of sour regulation resulting in a catastrophic experience for a crypto executive, wherein Tigran Gambaryan, a Binance executive, is being charged without access to medical treatment in a country where he is not a local citizen.
An example of a positive legal framework is Dubai, where Binance founder and former CEO Changpeng Zhao resides. Its crypto-friendly approach has allowed CZ and his family to live there, along with many other crypto executives, and freely conduct business.
Effect of Capital Requirements
In countries like Singapore and Japan, high capital requirements, such as SGD 2.5 million in Singapore or a high annual income in Japan, offer stability and legal protections but can be prohibitive for smaller startups.
On the other hand, Estonia and Malta have lower barriers, encouraging innovation and easier entry for startups, though they may lack the regulatory safeguards of more established markets.
For high-net-worth executives, countries like Dubai and Hong Kong offer long-term residency through significant investments, such as AED 2 million (~USD 540,000) in Dubai or HKD 30 million (~USD 3.8 million) in Hong Kong. These options provide access to business-friendly environments with fewer restrictions on capital flows.
Implication of Application Complexity
High-complexity countries, like Japan, have strict regulations from the FSA, requiring extensive documentation and compliance with capital and AML standards. These can delay operations and increase costs. Similarly, Singapore’s GIP has rigorous requirements, including proof of a successful business track record and detailed financial disclosures.
In contrast, Dubai’s Golden Visa program offers a more straightforward process for investors, with clear requirements and fewer bureaucratic hurdles. Estonia’s e-Residency program is also known for its simplicity, allowing quick market entry through an online application process.
Depending on the country, the complexity of the application process can either slow down business expansion or provide a smooth entry. High complexity can be challenging for smaller firms, while more accessible processes, like those in Dubai and Estonia, are attractive for quicker market access.
Centralized or Decentralized Talent
The availability of tech talent is crucial for crypto businesses and executives when selecting a country to establish operations.
For example, countries like Singapore and Switzerland are renowned for their highly skilled workforce, making them attractive destinations for crypto firms seeking top talent. Conversely, lacking local talent can limit growth opportunities and force companies to train new talent or outsource key functions.
