Dominica vs Luxembourg
Crypto regulation comparison
Dominica
Luxembourg
No Regulation
Legal
Dominica has no specific cryptocurrency legislation. No income or capital gains tax. ECCB provides regional monetary oversight.
Luxembourg is a major European hub for crypto and blockchain financial services. The CSSF regulates VASPs and crypto-related investment funds. Crypto held for more than 6 months is generally exempt from capital gains tax for individuals, making it attractive for long-term holders. Luxembourg hosts several prominent crypto exchanges and fund administrators.
Tax Type
No tax
Tax Type
Capital gains
Tax Rate
0%
Tax Rate
0-42%
Exchanges
Yes
Exchanges
Yes
Mining
Yes
Mining
Yes
Regulator
Eastern Caribbean Central Bank (ECCB)
Regulator
CSSF (Commission de Surveillance du Secteur Financier)
Stablecoin Rules
No specific stablecoin regulation
Stablecoin Rules
Regulated under EU MiCA framework; Luxembourg hosts major stablecoin issuers
Key Points
- No specific cryptocurrency legislation
- No income or capital gains tax
- ECCB provides regional monetary oversight
- DCash CBDC pilot in the ECCU region
- Limited crypto adoption
Key Points
- CSSF oversees VASPs under the Luxembourg AML/CFT framework
- Individuals holding crypto for 6+ months are generally exempt from capital gains tax
- Short-term gains taxed at progressive income tax rates up to 42%
- Major hub for crypto investment funds and blockchain companies
- MiCA framework fully applicable from December 2024