Cryptocurrency prices have been soaring in the past few months, with Bitcoin leading the way. Investors are flocking the markets and looking to buy Bitcoin by any means possible, with a myriad of options at their disposal.
However, the crypto market hasn’t always been this accessible. Some countries have straight out banned cryptocurrencies or anything related to them. Others have imposed strict trading rules that might discourage even the most fervent crypto supporter.
Thankfully, that’s not always the case. In this article, we will take a look at countries on the other side of the spectrum, where cryptocurrencies and blockchain technology are allowed to thrive.
Below you will find the top places around the world where cryptocurrencies are enthusiastically welcomed, whether as investment or as innovative technology.
This highly-developed country is one of the top market economies in the entire world. Its geographical placement has established it as the most visited trading hub in middle-Asia. It has been regarded as a tax haven and one of the most technologically advanced countries in the world.
Additionally, it registers as the 3rd highest income per capita in the world, with a stable government and near-zero corruption.
What is most interesting is that Singapore has been pushing towards crypto-friendly regulation for several years now. For example, Bitcoin and other cryptocurrencies are considered to be goods (instead of capital).
This means that companies or individuals trading with cryptocurrencies are subject to the GST (goods and services tax) which amounts to an extremely fair 7%.
Finally, profits from long-term investments in crypto aren’t taxable at all, as Singapore doesn’t have a tax on capital gains. So long-term investors will not be subject to tax if they sell after their holdings several years after purchase.
Even if the New Zealand government has stated that they do not recognize cryptocurrencies as legal tender, the country’s stance on crypto has been very favorable nevertheless.
Currently, the government sees cryptocurrencies as property, with taxes applied on the moment they change hands. However, this means that sometimes, there could be a double-taxing problem if there’s an income tax applied to the transactions.
To address this issue and make cryptocurrency trading more attractive, in February 2020, the New Zealand Inland Revenue Department released a proposal that favors crypto trading. Quite similar to that of Singapore, cryptos can be taxed at 15% with GST, and only once.
Often called the “blockchain island”, this small European country has been ticking all the boxes for crypto enthusiasts for several years now. The government of Malta has passed various regulations favoring blockchain technology.
The South-European island is one of the few countries that have released detailed legislation on Bitcoin and other cryptos, proclaiming itself as “The EU’s crypto leader”.
Thanks to these regulative advancements, leading cryptocurrency exchange Binance migrated its headquarters to Malta in 2018.
Malta’s prime minister has even advised other EU countries to be more forward towards cryptocurrencies unless they want to be lagging behind competing economies such as China or the US. All in all, Malta’s actions confirm their belief in crypto’s future in the financial world.
Switzerland has been adopting progressive measures to welcome crypto and blockchain-oriented companies in the past 5 years.
After several crypto-friendly laws were passed, the Zug canton has been dubbed the “Crypto Valley”. The municipality of Chiasso followed suit, trying to rival the Zug canton, nicknaming itself “CryptoPolis”.
Trading cryptocurrencies is completely legal in the country and the government even encourages young people to become crypto entrepreneurs. Cryptos are considered assets in Switzerland (foreign currency, to be exact) and are taxed according to the type of income they represent.
These lenient and encouraging regulations have been met with enthusiasm in the community, with many blockchain companies choosing the country for their business. Some notable examples are Cardano, Tezos, and Shapeshift.
This small North-European country is considered as one of the most technologically advanced nations in the EU. The country even became a pioneer of e-government, implementing internet voting as early as 2005.
In Estonia, blockchain technology is actively used for some major national databases such as healthcare and social security.
The country also proposes an e-residency option to foreigners, an Estonian digital identity that allows anyone to access their banking and e-business services. This is a great way to enjoy the lenient crypto regulations the country proposes, even if you don’t live there.
This list of countries is only a small fraction of an increasing number of crypto-friendly nations around the globe. With cryptocurrency prices increasing each day, governments are finally beginning to understand the full potential of blockchain technology.
In the future, we hope to see more countries adopting a positive stance towards cryptocurrencies, both as financial instruments and as a disruptive technology in vital infrastructural elements.
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