Catawba Digital Economic Zone (US)

[MarkusCostigan]

The CDEZ is the first jurisdiction within the United States created for digital entrepreneurs, freelancers, FinTech, digital assets, Web3, and other exponential digital technologies. Enabled by the sovereign Catawba Indian Nation of the Carolinas.

HOW DOES THE CDEZ WORK?​

• With a model similar to Estonia’s eResidency, the CDEZ allows anyone to remotely set up a Company with a few clicks.
• CDEZ Companies are regular legal entities (LLCs, DAO LLC, C-Corps, DAO UNAs, NGO), etc.
• CDEZ entities are domiciled in the Catawba Indian Nation, and are regulated by the regulations of the Catawba Digital Economic Zone
• CDEZ Companies can open bank accounts within the United States.

https://catawbadigital.zone/
Any feedback?

 

[bibing]

What would be the benefit or purpose of opening this, rather than a Wyoming LLC?

 

[CyprusLawyer101]

Would be interested to understand more about the DAO options

 

[Don]

That's a cool marketing choice. Use the words "most options" when you offer two options:

Double negative means "Compromising on legal protection", as far as I'm concerned.

 

[Cetme308win]

Is that legally accepted or its one of these fakest companies registers like the One Enterprise Way, Business Enterprise Zone, Banjul one? Lol

 

[Sols]

Is that legally accepted or its one of these fakest companies registers like the One Enterprise Way, Business Enterprise Zone, Banjul one? Lol

That's a really valid concern. What happened with The Gambia iRegistry scam could easily happen again.

https://zoneauthority.io/ is the website of the Catawba Nation Zone Authority, which is in charge of these zones under the Catawba nation. It links directly to https://catawbadigital.zone/

However, how do we verify that the Zone Authority is legitimate? For that, we can turn to the Catawba nation website (https://www.catawba.com/) where we can find a press release from February 12, 2024: https://www.catawba.com/storage/app/media/banking-commissioners-appointment.pdf This press release links to both the Zone Authority and the Catawba Digital Economic Zone.

I wish they had made it clearer and more easy to connect the dots.

 

[Cetme308win]

That's a really valid concern. What happened with The Gambia iRegistry scam could easily happen again.

https://zoneauthority.io/ is the website of the Catawba Nation Zone Authority, which is in charge of these zones under the Catawba nation. It links directly to https://catawbadigital.zone/

However, how do we verify that the Zone Authority is legitimate? For that, we can turn to the Catawba nation website (https://www.catawba.com/) where we can find a press release from February 12, 2024: https://www.catawba.com/storage/app/media/banking-commissioners-appointment.pdf This press release links to both the Zone Authority and the Catawba Digital Economic Zone.

I wish they had made it clearer and more easy to connect the dots.

The problem is that probably,banks and probably the federal government dont accept them... Thats the question

 

[bibing]

This is the thing...Banks are not even accepting offshore from legitimate countries, how the hell they are going to accept companies from these...

 

[ilke]

The problem is that probably,banks and probably the federal government dont accept them... Thats the question

Well, according to their site, they are cooperating with 1 FDIC-member bank from the state, and 2 Puerto Rican IFEs, of which only 1 is crypto-friendly and therefore has a (potentially) existing change of accepting it's DASPs/VASPs.

I would not count on it though. Your concern for the banking is fully valid. Difficult to state the stance of the US itself on it as well.

 

[Legal]

If there is no Bank and EMI option, then this license, in 90% of cases, will be useless. Maybe they have a few partner Bank/EMI?

 

[ilke]

If there is no Bank and EMI option, then this license, in 90% of cases, will be useless. Maybe they have a few partner Bank/EMI?

That's what I mentioned in the post above but they have only 1 bank partner that they list as friendly to their DASP license.

And it's not like these free-zones think about banking very often. Look at crypto exchange licenses in the UAE (RAK DAO for example). They started giving out licenses with no plan as to who would be banking the entities and all UAE banks were rejecting them from the start - leading the DASPs to ending up with sketchy banks like Migom (already collapsed) or EQIBank (don't want to jinx that ).

 

[daniels27]

Are the tax free? If yes, can you add a WY LLC to get access to banking? If no, why would I care?

 

[Sols]

The problem is that probably,banks and probably the federal government dont accept them... Thats the question

The federal government has no choice but to accept them. Native reserves function like independent nations within the US. It's kind of (but not exactly) like how the US doesn't have a choice whether it accepts Florida or UK companies.

Banking is probably difficult but that's more to do with it being new rather than where or what it is. The laws look clear. The Catawba Nation is well within its rights to pass laws like this. Eventually some banks and financial institutions will begin to make decisions on whether to accept these types of companies. US banks might not have a choice but to accept, unless they risk getting sued for discrimination. That doesn't mean US banks are likely to start accepting Catawba companies owned and operated by non-US persons on non-US soil, though.

If taxation for these companies/legal persons works the same as it does for natural persons, they are subject to federal tax but not state tax.