In just over a decade, cryptocurrency and blockchain technology have transformed our world for the better. Now, hundreds of millions of people worldwide own some form of cryptocurrency.
Cryptocurrency has revolutionised how the human race sends and receives payments by providing instant transactions, lower fees, bigger options to diversify portfolios, and simultaneously lowering risks. Not to mention bringing the opportunities of decentralised finance to the global population of unbanked people.
Millions of people are involved in crypto, but what about the countries they live in? Each country naturally differs, and whilst some nations are closed to widespread cryptocurrency adoption (for now), many nation-states have pledged their full support to crypto and subsequently created positive environments that have allowed crypto to flourish. Often with very positive results.
So, let us tell you about the little-known list of the world’s most crypto-friendly countries. This article is for you if you’re a crypto investor passionate about the wider world!
The small country of Gibraltar, located off the Southern tip of Spain, has long been a fruitful business destination and has since incorporated crypto. The country has successfully attracted many blockchain companies to set up offices there.
Gibraltar launched its Digital Ledger Technology (DLT) Regulatory Framework in 2018 following intense engagement with the cryptocurrency industry. The framework required all crypto exchanges to register with the Gibraltar Financial Services Commission (GFSC).
#2. El Salvador
Any list of crypto-friendly countries wouldn’t be complete without El Salvador. In 2021, the Central American country made Bitcoin history when it became the world’s first to make the original cryptocurrency the country’s official currency officially.
With the government fully backing Bitcoin, all crypto regulations in El Salvador are under the government’s jurisdiction. In addition, this innovative country is widely regarded as one of the world’s best crypto tax-free jurisdictions.
Singapore is now well-known for being a very crypto-friendly country, as well as quirky laws on chewing gum and public singing. The Monetary Authority of this small Southeast Asian country has pledged its full support to the domestic growth of cryptocurrency.
Various legislation has been introduced to regulate the domestic crypto industry in Singapore, and fiat currency transactions and digital currency payments are regulated equally. As a result, numerous major cryptocurrency projects, from Zilliqa to the Kyber Network, have decided to base their headquarters there.
Another bonus of living in this crypto-friendly country is the fact that citizens of Singapore are not required to pay capital gains tax on cryptocurrency. Not bad, right?
Estonia has long developed a solid reputation for being an innovative country that provides a positive space for entrepreneurs. The world of cryptocurrency was no exception. Interestingly, Estonia was one of the first countries was the first to legalise cryptocurrency activity back in the early days of digital currencies.
From Crypterium to Ironx, many crypto projects have decided to base themselves in Estonia, as crypto entrepreneurs are easily able to apply for two different types of licenses related to forming a cryptocurrency-focused business:
- The exchange of cryptocurrency to FIAT currency.
- The provision of cryptocurrency wallet services.
And when it comes to crypto tax, any gains made through cryptocurrencies are taxed in the saw way as any other form of corporate business in Estonia.
In Germany, if you held a particular cryptocurrency for over a year, you are not required to pay any capital gains tax on profits.
Amongst cryptocurrency investors, this has made Germany a firm favourite in crypto-friendly countries and subsequently attracted major crypto projects to the country, such as Spielworks and MXC.
In addition, the German government has developed a range of cutting-edge technology that lets crypto investors buy and sell securities on the blockchain in exchange for money from Germany’s central bank.
Portugal hasn’t implemented any crypto-specific laws or regulations, so digital currencies are permitted, as is the right to buy, hold, and sell them. The bonus? The Portuguese Tax Authorities (PTA) don’t consider profits from the sale of cryptocurrencies subject to capital gains tax.
As a result, Portugal is widely viewed as one of the world’s most crypto-friendly countries and has attracted major crypto names to the country, such as AppCoins and KimiaCoin.
#7. The Netherlands
With a long history of tolerance, the Dutch have maintained their open-minded reputation regarding cryptocurrencies. The Dutch government has widely recognised the range of beneficial advantages that crypto can bring to the economy of the Netherlands.
The Netherlands has a welcoming attitude towards cryptocurrencies. The country believes that it could potentially help improve the economy of the country, and people are free to use cryptocurrencies as they wish across the Netherlands.
The Dutch National Bank (DNB) supervises corporations that provide crypto services. Due to the crypto industry being free from tax since 2018, many investors consider The Netherlands one of Europe’s crypto tax havens.
Like the Netherlands, Canada is known for its tolerant attitudes, which have expanded to the cryptocurrency industry. Many crypto companies have relocated to the second biggest country on earth to take advantage of its open-minded attitudes to digital currency. Canada also has large domestic crypto projects such as Coinberry and Bitbuy.
There are almost 1,500 Bitcoin-accepting ATMs across Canada, further bolstering its reputation as one of the world’s most crypto-friendly countries.
One of the most popular hotspots for crypto investors and companies is the small island nation of Malta. Recently, the country passed crypto-specific laws to clarify information surrounding the requirements needed to set up a legal cryptocurrency business in Malta.
An attractive destination for crypto businesses, some of the various crypto projects operating from Malta include VAIOT and Xcoins.
And last but not least is Slovenia! This small, beautiful nation on the edge of the Balkans is taking the top spot of crypto-friendly countries. Those who benefit from trading crypto in the country do not have to pay income tax on any profits. Interestingly, the mining of cryptocurrency is not subject to VAT in Slovenia.
In 2022, Slovenia boasts more than 70 businesses and 32 sports venues that flawlessly accept crypto as a legitimate form of payment.
So, what is the future crypto?
From Germany to Slovenia and Portugal to El Salvador, this list has unveiled ten of the most crypto-friendly countries worldwide. If there is one takeaway from this article, cryptocurrency acceptance is growing at record speed.
The future is bright; the future is crypto! How many more crypto-friendly countries will be added to this list over the coming months? Stay tuned to find out.