Cryptocurrency industry has witnessed a rapid growth in the past few years. It has revolutionized the financial ecosystem and opened a new world of opportunities to investors. The growing popularity of digital currency has also forced governments to take regulatory measures and laws. Even though many countries have embraced the world of cryptocurrency, there are some countries that have not yet legalized the business of digital currency. This article aims to introduce some of the best crypto-friendly countries in the world.
What Factors Make a Country Crypto-Friendly?
A crypto-friendly country creates a legal and stable environment for the digital currency to thrive. Such countries welcome the concept of cryptocurrency and allow investors to invest in them to generate profits. A country becomes crypto-friendly when it adheres to the cryptocurrency regulatory laws, favorable tax policies and supports the financial institutions for crypto businesses and transactions.
These countries will also have a legal framework that accepts and supports cryptocurrency as a payment. Investors find better opportunities to integrate with cryptocurrency when they live in crypto-friendly countries. Even though few countries have not yet legalized the concept of cryptocurrency, there are many countries that are developing to support the use of digital currency.
Top 10 Best Crypto-Friendly Countries
Following are the Top 10 Best Crypto-Friendly Countries;
1. Switzerland
Switzerland has been listed as one of the most crypto-friendly nations. Since 2018, the country has been providing the best environment for the crypto industry and has established itself as a global crypto leader. There is a region called Zug in Switzerland which is famously referred to as the Crypto Valley. Crypto Valley is the main centre for blockchain startups. The country has a clear stand on tax policies and cryptocurrencies are treated as assets like gold. The Swiss Financial Market Supervisory Authority (FINMA) oversees and governs the actions ensuring much security and transparency.
2. Singapore
The nation is well known for its innovative way of thinking and supporting the cryptocurrency industry. With a strong regulatory framework and laws, Singapore has created a favorable environment for cryptocurrency and blockchain technologies. The country’s tax laws are favorable to crypto transactions and the Monetary Operations of Singapore (MAS) governs all the crypto-related financial activities.
3. Malta
Malta is often referred to as the Blockchain Island. The nation has established itself as a global hub for crypto-related businesses and ventures. The Virtual Financial Assets (VFA) is a framework specially designed to govern and provide transparency to transaction activities. The country remains in the forefront for offering a supportive regulatory framework and innovative thinking towards blockchain technology.
4. Germany
The country has upheld strict regulatory laws and actions for establishing a successful environment for the cryptocurrency industry. Germany is also known for its unique approach to crypto taxation policies. Users holding cryptocurrencies like Bitcoin or Ethereum for a long term are exempt from huge taxes. The regulatory framework of the country is governed by the Financial Services Supervisory Authority (BaFin).
5. Canada
Canada can be considered as one of the fastest-growing economies in the world. The nation has created a regulated space for the development of cryptocurrency and blockchain technology. The country aims to provide a wide range of opportunities for investors through a well-structured legalized framework.
6. Portugal
Portugal has remained a top choice among many investors trading in cryptocurrency. One of the major reasons behind this is that the nation has eliminated the need for various licensing requirements for commencing crypto-related activities. The favorable taxation policies and the nation’s support of innovative blockchain technologies have made it one of the best crypto-friendly countries in the world.
7. Luxembourg
The nation has created a supportive framework for the adoption and development of cryptocurrency. The Commission de Surveillance du Secteur Financier (CSSF) monitors and ensures the smooth and transparent flow of crypto and financial transactions.
8. Slovenia
Slovenia has one of the strongest economies in Central Europe. The Slovenian government realizing the potential of cryptocurrency extends their strong support to the growth of Bitcoin and other cryptocurrencies. The supportive tax system and the elimination of imposing capital gain tax make Slovenia a suitable country for crypto trading.
9. Estonia
Even though Estonia is a small country, it is regarded as one of the strongest and popular space for trading cryptocurrency. The country treats digital currency as other assets and aims to provide a much transparent taxation policies to the investors. Estonia has also launched an e-Residency program that promotes businesses and organizations to utilize digital currency for greater profits.
10. Argentina
The economic sphere of Argentina is one of the major reasons behind it being a crypto-friendly country. The government has offered huge support to the development of the crypto industry in the country and has also eliminated heavy crypto taxes. The regulatory restrictions are also mild making the country a suitable choice for many investors.
Read More: Top Crypto-Friendly Banks in Europe: Your Gateway to Digital Finance
The Bottom Line
Many countries have started accepting and supporting the development of cryptocurrency. Apart from the ones mentioned above there are many more countries like Japan, Netherlands, and the United Arab Emirates (UAE) that have transformed to a crypto-friendly country. Countries like Hong Kong and Panama are on their developing stage towards becoming a crypto-friendly nation.