- The idyllic island nation of Palau offers a digital residency program for $248.
- Binance’s founder initially supported the program but later distanced itself.
- Traders claim success in using Palau identification to skirt country-specific bans.
The idyllic island nation of Palau, renowned for its mesmerizing diving spots, has become a hotspot for digital residency, according to a recent finding by Wall Street Journals (WSJ).
For a mere $248, individuals can acquire a one-year “digital residency” in Palau without ever setting foot on the island, the report highlighted. This unconventional residency option has attracted the attention of crypto traders seeking alternative pathways to access crypto platforms prohibited in their home countries.
According to WSJ, the Binance exchange CEO Changpeng Zhao initially supported Palau’s digital residency program. However, Binance has since distanced itself from the initiative, stating that it severed ties after conducting due diligence.
Launched in January 2022, Palau’s digital residency technology platform, RNS, offers physical and digital identity cards. Applicants must undergo anti-money laundering checks, provide contact information, and submit a valid form of identification before receiving approval. However, Palau’s digital residencies do not grant citizenship or a passport.
A survey of RNS Twitter pages shows that most posts regarding Palau’s digital residency program focus on crypto-related matters. RNS, on Twitter, stated that traders could exploit the Palau identification to circumvent country-specific bans on crypto services.
Since most crypto exchanges require users to provide government-issued photo identification, many Twitter traders claim they have successfully accessed banned digital asset exchanges using their Palau identification.
Jay Anson, the director of Palau’s digital residency program at the finance ministry, stated that, like any ID card, the government could not control how individuals utilize or attempt to misuse the document. Anson clarified that the government does not encourage falsifying physical residence or circumventing laws.
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