Use of Cyprus companies for trade in Bitcoins

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Bitcoins Bitcoins Bitcoins are a virtual currency which recently came under a lot of pressure due closure of one of exchanges, stealing of Bitcoins of high value and fears that Bitcoins could be used for money laundering and other illegal activities. Singapore, Japan and the USA are considering regulation of Bitcoins. Cyprus is one of the countries which has no regulation for Bitcoins. Cyprus offshore companies can be used for dealing in Bitcoins. However, the Ministry of Finance and the Central Bank of Cyprus have jointly issued a statement saying that the public has to deal with Bitcoins with caution as there is no protection. Some local Cyprus companies have started to accept Bitcoins in Cyprus in exchange for their services. Cyprus is well-known for its favorable tax regime. Only in January, according to the Cyprus Company Registrar, about 1,500 were registered. The Cyprus corporate tax rate is only 12.5%. Cyprus has about 40 Double Tax Agreements (DTA) signed. The Cyprus company incorporate procedure is inexpensive and straightforward. Opening of a bank account is possible remotely in Cyprus which adds some convenience as there’s no need to travel to Cyprus to open an offshore bank account.