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- 1 While cryptocurrency is getting embraced globally and some nations stand out as its early supporters.
- 2 These countries started introducing crypto-friendly policies right from the beginning.
- 3 They also provided a conducive environment for entrepreneurs in this domain.
Most prominent nations are going to introduce CBDC. The Central Bank Digital Currency is a government-owned cryptocurrency. The government will regulate the assets while keeping them characteristically close to BTC and ETH. While it may not be the purest form, it clearly shows the growing dominance of crypto.
The idea of having an alternative means of exchange has stricked the chord with many. Everyone including the centralized agencies wants transactions to be faster, safer, and cheaper. So, they all are ready to embrace crypto and are already doing it in many ways. Though they’re not largely regulated by now, countries have shown their support for digital assets.
So, here are some countries known for their crypto-friendly stances.
Top Crypto-Friendly Countries In the World
From blockchain-based projects to taxation, these countries have supported crypto in many ways.
Switzerland
Widely regarded as a leader in finance, Switzerland is also a supporter of crypto. So much so that the country is also known as the “Crypto Valley”. It is home to many popular crypto foundations like Ethereum, Tezos, and Cardano. Needless to mention, the nation has a favorable environment in terms of regulations.
Moreover, it charges very low taxes on crypto profits, unlike other countries.
Malta
Malta is one of the first nations to accept Bitcoin as a legal tender. Crypto folks even call it the “Blockchain Island”. Its crypto-friendliness has attracted big names like BitBay, Binance, OKX, and many more. The small yet significant nation has three laws for protecting crypto businesses and their investors. On top of that, it does not levy any capital gain on crypto transactions.
Estonia
This Baltic country is known for its proneness towards new technology. The nation provides services like e-voting, e-residency, e-health, and more. Furthermore, it’s offering a licensing system for crypto entities making business easy for them. Estonia doesn’t charge any capital gains tax and has a corporate tax rate of 20%.
Singapore
This leading fintech hub in Asia has opened its arms towards crypto long ago. It has introduced a supportive regulatory framework that supports crypto businesses and investors. The Monetary Authority of Singapore supervises crypto services with the Payment Services Act. The country also doesn’t tax crypto profits obtained by individuals.
Japan
Japan is considered one of the most advanced and oriented markets towards cryptocurrency. In 2017, this country started recognizing Bitcoin as a legal means of exchange. In addition, it has clear and strict regulations for crypto entities. Japan Virtual Currency Exchange is the autonomous body that regulates standards and practices in this crypto space.
It charges individuals 15% to 55% income tax on crypto profits.
Canada
The Great White North has been crypto-friendly right off the bat. It maintains a well-crafted ecosystem for supporting crypto exchanges, startups, and communities. The nation has also tightened the norms for preventing crypto-based fraud. It has the Terrorist Financing Act (PCMLTFA), Proceeds of Crime (Money Laundering), and some other acts for that.
Based on the nature and frequency of the transaction, it charges taxes on crypto profits.
South Korea
South Korea is another oriental nation that has shown a proclivity towards crypto. It focused on crypto adoption from the beginning and hosts various exchanges as well. So many merchants and other firms accept payment in digital assets here. On the regulation front, it has the Reporting and Use of Specific Financial Transaction Information Act.
It legalizes crypto activities with proper vetting and levies a tax of 20% on crypto profits.
Lithuania
Another baltic nation that has emerged as a hub for crypto users and businesses. Its favorable environment and incentives have attracted many companies here. Firms like Bitstamp, Wirex, and Revolut have the crypto revolution in this country. Besides that, it has well-defined guidelines for ICOs and all other blockchain-based projects. Crypto traders don’t pay taxes on transactions involving only digital assets.
Portugal
Portugal has focused on building a welcoming environment for crypto users and investors. It has exempted individual investors from paying taxes on their trading profits. On top of that, the country’s tax authority has excluded crypto from personal taxes and VAT. Still, the enterprises belonging to this domain need to pay VAT and corporate tax.
Closing Thoughts
The 2023 has been quite remarkable for the crypto space. The world saw some significant steps towards the implementation of digital assets. On the other hand, it saw the verdict of Sam Bankman Fried indicating the governments are serious about crypto. Many countries announced their plans to launch CBDC or regulatory framework on crypto.
Crypto enthusiasts are hopeful that 2024 will bring more positivity to the blockchain community.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
