In recent years, a significant shift has occurred across the globe regarding “golden visa” programs, which enable wealthy individuals—including those involved in cryptocurrency—to secure residency or citizenship by making substantial financial investments. These programs, typically involving investments in real estate, government projects, or local businesses, have historically served as tools for nations seeking to attract foreign capital and talent. However, growing concerns about corruption, economic inequalities, and potential misuse are prompting many countries to reconsider their stance on these initiatives.
The European Union has taken a strong stand against golden visa programs. In May 2023, the EU court ruled Malta’s Exceptional Investor Naturalisation (MEIN) program illegal, citing issues related to the commercialization of European citizenship. This ruling came in the wake of Cyprus and Bulgaria terminating their own golden visa schemes in 2021 and 2022, respectively, under similar scrutiny. Notably, Spain’s government also canceled its golden visa program in April 2023 due to escalating housing costs linked to foreign investments, reflecting a broader unease about the economic implications of such programs. Since 2020, numerous countries—including the UK, Ireland, and the Netherlands—have either scrapped or significantly revised their golden visa offerings.
One group particularly impacted by these tightening regulations is cryptocurrency investors. Many of these individuals once sought out jurisdictions with favorable tax and regulatory frameworks. For instance, Portugal was considered a crypto-friendly haven, but recent changes are making it less attractive for golden visa applicants. Alessandro Palombo, co-founder of Bitizenship, an advisory firm connected to the program, remarked on Portugal’s shift toward more restrictive policies, citing rising concerns around money laundering and the challenges of integrating wealthy non-residents into local economies.
While some golden visa programs have adapted to include cryptocurrency investments, the overarching trend is one of increasing regulation. For instance, Portugal offers the Bitcoin Eco Golden Visa, which allows investors to gain residency through a fund that is tied to Bitcoin alongside local enterprises. El Salvador has also jumped onto the crypto train with a 2023 law allowing citizenship for those investing $1 million in Bitcoin or Tether (USDT). Italy is exploring similar concepts, with proposals for a golden visa route that would require a €250,000 investment in a Bitcoin startup.
However, the path toward crypto-based golden visas is fraught with challenges and regulatory uncertainties. A notable incident occurred in July 2023 when the TON Foundation, associated with the Telegram blockchain project, prematurely announced a UAE golden visa program. This initiative was said to offer residency for a $35,000 fee along with $100,000 in staked assets. The UAE government quickly refuted the claim, stressing no involvement in the proposal. This episode underscored the difficulties in striking a balance between innovative financial solutions and necessary regulatory oversight.
Critics of golden visa programs argue that they can destabilize local markets and foster corruption. Bulgaria’s program, for example, faced serious allegations of facilitating money laundering activities, with many beneficiaries hailing from China, Russia, and the Middle East. Similarly, Spain’s decision to shut down its golden visa scheme revealed how sudden inflows of foreign capital could inflate housing prices, displacing local residents and straining community resources.
Despite the downsides, proponents of golden visa programs point to their potential to drive economic growth. Supporters like Palombo suggest that these initiatives create a “mutually beneficial exchange,” where countries receive much-needed investment while investors secure residency and enhanced mobility. However, as geopolitical tensions rise and economic conditions fluctuate, the attractiveness of these programs is diminishing.
The future of golden visas remains uncertain, as regulatory environments evolve quickly. Palombo emphasized that what is acceptable today might become legally untenable in a matter of months—highlighting the increasingly stringent controls being implemented by governments around the world. With over a dozen countries having already phased out their programs or substantially altered them, the window for crypto investors seeking alternative citizenship options is closing rapidly.
Source: [Golden visas are shrinking for crypto investors](https://cointelegraph.com/news/golden-visas-shrinking-crypto-investors)