The government of St Kitts and Nevis, along with the country’s Citizenship by Investment Unit, have dismissed claims that investors interested in acquiring the country’s citizenship can pay using cryptocurrencies such as Bitcoin.
The St Kitts and Nevis Citizenship by Investment program is the oldest in the world, established in 1984 – it has offered investors from around the world one of the fastest, easiest and most affordable routes to a second citizenship .
Backed by a robust multi-layered due diligence process undertaken by international security firms from the US and the UK, investors must go through a formal application process consisting of eight key steps, which include:
- Step 1: Prior approval by a verified St Kitts and Nevis government agent and application preparation
- Step 2: Submission of citizenship application
- Step 3: Application processing by the Citizenship by Investment Unit and internal and external due diligence controls
- Step 4: The letter of approval in principle is issued
- Step 5: Contribution to either the Sustainable Growth Fund or pre-approved real estate
- Step 6: Clearance of the source of funds from the bank
- Step 7: Certificate of Registration issued
- Step 8: The citizen can apply for a St Kitts and Nevis passport.
Throughout the process, an investor will engage with an approved government agent who will facilitate the application and any payments will be made through registered banks using fiat money – a government-issued currency that is not backed by a commodity. such as gold. An example would be the United States Dollar, the Euro, or the Chinese Yuan.
Investors cannot make payments to a government-approved agent or Citizens Investment Unit using cryptocurrencies directly. These will need to be liquidated in fiat currency first and an applicant will need to provide a supporting statement regarding their source of funds as part of the application process.
St Kitts and Nevis has not yet adopted any cryptocurrency related legislation. The country is participating in the pilot program of the Eastern Caribbean Central Bank (ECCB), which aims to study the use of cryptocurrency as a fiat currency.
The purpose of the program is to provide a safe and secure digital financial system by leveraging the advantages of blockchain and is designed to illustrate the viability and functionality of the ECCB’s ability to issue Eastern Caribbean Digital Dollars.
The ECCB is the fiscal authority for the Eastern Caribbean Currency Union (ECCU). Speaking at the Electronic Cash Conference 2022, which was held on November 12, 2022, the Prime Minister of St. Kitts and Nevis, Dr. Terrance Drew, stated that while Bitcoin Cash – another form of cryptocurrency – is used as a tendering method by some businesses in the country, due diligence checks are currently being prioritized by his government ahead of any major decision regarding the official use of that cryptocurrency.
Prime Minister Drew stated that the financial security and safety of citizens is a matter of high priority and the government, with the guidance of the ECCB, is prepared to explore the possibility of introducing Bitcoin Cash as legal tender in the local financial space.
The prime minister explained that once all essential financial safeguards were in place, Bitcoin Cash could become accepted legal tender in St Kitts and Nevis by March 2023.
Benefits of acquiring second citizenship in St Kitts and Nevis
Citizenship by investment is a legal process to grant individuals – and, in some cases, their families – dual citizenship in exchange for a financial contribution to the country’s economy. The initiative allows countries to channel the funds generated into developing healthcare, education, infrastructure and more.
Being a citizen of St Kitts and Nevis offers investors a host of benefits, including family reunification, global mobility, enhanced security and increased economic opportunities.
St Kitts and Nevis offers award-winning and internationally acclaimed educational institutions such as veterinary and medical universities, attracting globally minded professionals. People from all over the world come to St Kitts and Nevis, over a million a year to be exact, due to the booming tourism sector.
In recent years, the country has seen an increasing number of American visitors. About 1,000 US citizens currently reside on the islands. Now, with more “work from home” policies than ever, many see the Caribbean as the perfect destination to get away from the hustle and bustle of big cities while still being connected when business demands.
In addition to citizenship and global mobility, St Kitts and Nevis offers its citizens who choose to become tax residents a wide variety of insurance services in a tax-friendly environment. For example, the country guarantees financial privacy by not making public any information about offshore business owners and senior managers.
Portfolio diversification is the first step in diversifying your investments so that your exposure is not limited to just one type of asset. A property investment in St Kitts and Nevis will allow you to diversify your investment portfolio and potentially make a return upon selling your real estate interest after the minimum holding period.
of
This will also ensure that you keep a certain amount of your wealth outside your country. In uncertain political and economic climates, knowing that a portion of your portfolio is free from the controls of a potentially corrupt government can give you tremendous peace of mind.
