South Florida has been a hub for cryptocurrency enthusiasts for years. In 2021, the city of Miami hosted the world’s largest crypto conference, even launching its own coin, named after the city itself. Florida is largely a pro-business state, and its lack of state income tax creates the perfect environment for potential crypto investors. With that in mind, here is an essential guide for anyone interested in investing in crypto in South Florida.
Understanding Regulations
Arguably the most important thing for cryptocurrency investors to understand is the legislation for the state in which they are investing. Though Florida is predominantly pro-crypto, the current lack of clear federal legislation means laws and guidelines change between states. In Florida, investors must comply with KYC (know your customer), obtain a Money Services license, and undertake an anti-money laundering program before investing in cryptocurrency. Knowing a state’s regulations is the first step to using crypto effectively and legally no matter where in the US they are based.
Popular Uses for Crypto
With such statewide positivity for cryptocurrency, individuals are not restricted to investing. They can also spend their cryptocurrency on a wide variety of commodities and services across the state. Some examples are explored below:
Real estate
Florida paved the way for crypto and real estate in the US, with real estate companies across Florida selling their properties for cryptocurrency. Such decisions keep these firms moving with the times, make them more appealing to the younger generations, and open up huge crypto housing markets across Florida. With real estate giants such as PMG (Property Management Group) accepting cryptocurrency for down payments and purchase price on their Miami properties, investors seeking to purchase property with cryptocurrency would struggle to find more options than what South Florida can provide.
Crypto Casinos
With real money online casinos still illegal in Florida, off-shore crypto casinos allow Florida-based players to engage in much-loved casino games for real crypto stakes. This can be a liberating experience for those living under Florida’s strict gambling regulations and open up the opportunity to play for real currency as opposed to in-game currency as seen in social casinos. There are numerous available online crypto casinos, and many sites such as bestcryptocasinos.ltd analyze them to present the differences in incentives, the most generous bonuses, and various payout features.
Crypto Gaming
In a recent report, it was estimated that 201 million people in the US alone play games of some kind. Once this pastime was only recreational, but the development and constant rising popularity of crypto has changed the game entirely.
As addressed, there are strict regulations on casino gaming in Florida, but these do not transfer to crypto gaming. Crypto gaming allows players to purchase in-game add ons which then become their property. These can be sold or traded for more crypto. Crypto gaming also allows for the rise of Play-To-Earn gaming where individuals can, as the name would suggest, earn cryptocurrency by playing certain games. Such an endeavor is a great alternative to the online casino sites Florida restricts as they allow recreational activity to become a respectable source of income for many people.
Setting up
With its positive attitude towards cryptocurrency and its support of business advancement, Florida is an excellent place to invest in crypto. To do so, the first step involves finding a suitable exchange company. Luckily, Florida residents have access to a multitude of reputable exchanges, including Kraken and Coinbase. Once an exchange has been selected, investors need to set up an account and undergo identity verification. They will then be able to fund their account through whichever method the exchange allows. Once done, and by ensuring they follow all anti-money laundering regulations and take steps to keep their cryptocurrency secure, they are ready to begin investing.
Understanding Crypto Taxation
All cryptocurrency investors in Florida must understand the tax implications. Despite Florida not charging state income tax, federal income tax is implemented on all earnings made through cryptocurrency. This is because cryptocurrency is defined by the IRS as property subject to capital gains tax. Additionally, if individuals in Florida are selling or purchasing tangible items using crypto, then sales and use tax may apply. It is important to understand what tax is applicable to investors and sellers when using cryptocurrency.
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