Most Crypto-Friendly Countries? · El Salvador · Singapore · Portugal · Malta · Puerto Rico · Switzerland · Slovenia.
There is a reason why cryptocurrency owns by 30 million people. It is a whale of today’s global finance sea. It has changed the way of receiving and sending payments with lower transaction costs, making instant virtual payments, reducing risks, and offering an investment diversification portfolio for many users.
No one can deny that the crypto world is growing faster and can get bigger with time because people want to pour their money and time into it. Most countries have thrown their weight behind crypto adoption, even if only some countries are open to it.
The best way to make strategic choices regarding crypto investment is to know the best crypto-friendly countries for your investment type. To serve as a guide, we’ve compiled this list. Following is a list of the countries with the most bitcoin-friendly regulations and projects worldwide.
Crypto companies had access to Swiss banks’ business accounts for the first time in 2018. Some countries recognize Bitcoin as legal tender, while others classify cryptocurrencies as assets. A cryptocurrency exchange in Switzerland is permitted as long as it is licensed and regulated by FINMA (Federal Financial Market-Supervision Authority). Cryptocurrencies are generally subject to Swiss wealth and income taxes based on worldwide income and wealth. Several crypto projects are located in the small Swiss city of Crypto Valley. 11 unicorn currencies have been founded in Crypto Valley, including Ethereum, Cardano, Polkadot, Aave, Cosmos, Solana, Tezos, Dfinity, Near, Nexo, and Diem (formerly Libra).
The Luxembourg government has embraced cryptocurrency since 2016, when it licensed Bitstamp, a virtual currency exchange platform, as a payment institution for the first time in Europe. Cryptocurrencies are recognized as currencies in the country, but there needs to be clear regulation. Regardless, the government’s stance on crypto is inclusive and positive. Cryptocurrency exchanges in Luxembourg are regulated by the country’s CSSF, which regulates other financial organizations. Zcash, Ethereum, Litecoin, and Bitcoin are some of Luxembourg’s most popular crypto projects.
Due to its reputation as an attractive spot for doing business, Gibraltar attracts blockchain-based companies to its small country, the south of Spain. After extensive engagement with the crypto industry, Gibraltar introduced a DLT regulatory framework in 2018. A Gibraltar Financial Services Commission (GFSC) registration is required for exchanges under the framework. Digital asset service providers seeking regulation recently received guidance clarifying their responsibilities.
9. El Salvador
It was impossible to miss El Salvador becoming the first country in the world to legalize Bitcoin as a legal tender in 2021. The government is responsible for crypto regulations, meaning Bitcoin has the government’s full support. Bitcoin Service Providers (BSP) are regulated by the BTC Law Regulation, which includes anti-money laundering programs. It is well known that Bitcoin has become a major crypto project in the country. The Central American country is credited with being one of the world’s best cryptocurrency tax-free jurisdictions.
Singapore is the most cryptocurrency-friendly country in Southeast Asia. Full support is given to the growth of cryptocurrency in Singapore by the Monetary Authority of Singapore (MAS). On January 28, 2020, the MAS introduced and enacted the Payment Services Act (PSA) to regulate the cryptocurrency industry. In addition, cryptocurrency gains are not subject to capital gains tax in Singapore. Taxes do not apply to individual or corporate cryptocurrency funds. The income tax is imposed on corporations based in Singapore that operate as crypto trading companies or accept crypto payments. Numerous crypto projects are also headquartered in the country, including Zilliqa, Qtum, Kyber Network, Bluzelle, and many more.
A few countries have legalized cryptocurrency activity, including Estonia, and it continues to develop technologically. The Estonian government introduced a law in 2017 that allows entrepreneurs to apply for licenses for two activities: exchanging virtual currencies for fiat currencies and providing wallets for virtual currencies. The Estonian Finacial Intelligence Unit (FIU) is the main crypto regulator in this part of the world. Among its responsibilities is overseeing the cryptocurrency licensing process and anti-laundering. Cryptocurrency transactions in Estonia are taxed like any other corporate activity. Crypto projects in Estonia include Stex, Cryptorium, Ironx, and Coinsbut.io.
Regarding cryptocurrency taxes, Germany is a favorite of crypto investors. German law exempts individuals from capital gains tax for crypto assets held for more than a year. BaFin (also known as the Federal Financial Supervisory Authority) regulates traditional flat banking activity and the use of crypto assets in the country. Germany is also one of the most compliant with the EU’s various Anti-Money Laundering directives (i.e., 4,5 & 6 AMLD) concerning cryptocurrency. Additionally, Germany developed a blockchain-based technology that allows investors to buy and sell securities using central bank money. Spielworks, LUKSO, and MXC are just a few of the crypto projects that have sprung up in the country today.
A crypto-friendly country, Portugal surely ranks among the top. Capital gains from the sale of cryptocurrencies are not taxed by the Portuguese Tax Authorities (PTA). The issuance of cryptocurrencies is not subject to any specific rules or laws; therefore, it is not prohibited to purchase, hold, or sell cryptocurrencies. It is supervised by the Bank of Portugal (BOP) and has expanded to include cryptocurrency since 2020. Portuguese crypto projects include AppCoins and KimiaCoin.
4. The Netherlands
Cryptocurrencies are welcomed in the Netherlands. It is believed to have the potential to improve the country’s economy. There are no hard rules against cryptocurrency use in the Netherlands, so it is common for people to use them freely. Although cryptocurrency is a digital currency, it still needs to be accepted as such. The Financial Action Task Force (FATF) demands that they follow certain standards. Following the Sanctions Act of 1977, the Dutch National Bank (DNB) supervises crypto service providers. Crypto trade has been tax-free in Portugal since 2018, and it is considered a tax haven.
Consequently, many cryptocurrency companies can operate freely in Canada because no legislation makes cryptocurrencies illegal. Securities regulators in Canada are mandated to protect the public by regulating cryptocurrencies primarily under securities laws. One reason for Canada’s reputation as a crypto-friendly nation is that 1,464 ATMs currently accept bitcoin. Coinberry, Coinsmart, and Bitbuy are among the crypto projects coming out of the country.
Cryptocurrencies are gaining popularity in Malta, which is seen as a leading innovator in this revolutionary field. In a bill passed by the Maltese Parliament on July 4, the legal framework for setting up a cryptocurrency business in Malta was clearly outlined for any interested investors. The following are among them:
- Malta Digital Innovative Authority Act
- Innovative technological Arrangement and Service Act
- Virtual Financial Asset Act
MFSA oversees and licenses companies in the digital space as Malta’s leading regulatory authority. Several crypto projects are active in Malta, including VAIOT and Xcoins.
As a result of its welcoming attitude toward crypto, Slovenia ranks at the top. A person who benefits from trading Bitcoin (due to fluctuations in the cryptocurrency market) is not subject to income tax in Slovenia. Slovenia also does not consider cryptocurrency mining as a VAT transaction. Slovenia made a further effort to harmonize its money laundering legislation with EU directives to protect investors. Due to its low tax rates and generous policies, Slovenia is one of the most friendly countries regarding crypto taxes. So Digital assets are currently accepted as payment at 72 establishments and 33 sports venues in the country.