by Omri Marian

Over the past few years, small jurisdictions that are known as “tax havens” have been engaged in a race to become leading hubs for blockchain technology. In a recent article, I explore the extent of this phenomenon, its drivers, and its regulatory ramifications. In short, I argue that the traditional tax havens model is in decline due to recent coordinated international efforts to shut down abusive tax havens practices. Blockchain technology, however, offers similar commodities as offered by tax havens jurisdictions. Blockchain technology is not (yet) subject to coordinated international regulatory efforts. Tax havens seem to have identified the opportunity to offer their traditional regulatory commodities’ via the medium of the blockchain technology. I argue that the rise of so-called “Blockchain Havens” presents significant regulatory challenges that can only be addressed via coordinated global efforts. Continue reading →