Cryptocurrency has come a long way since the entry of Bitcoin in 2009. As more people are using digital currency, governments are making efforts to streamline their transactions. Many countries today have regulations regarding the use of cryptocurrency. This article highlights those with crypto-friendly laws.
This country tops our list for officially making Bitcoin (BTC) a legal tender in 2021. Business owners now accept BTC as a form of payment, and the government offers financial incentives to popularize the use of BTC by downloading a dedicated crypto app.
People can settle debts using digital currency, and the government is focusing on attracting more investment in the cryptocurrency sector. More than 4 million users utilize Civo, the country’s digital wallet.
There are even plans to build a BTC city after selling bonds worth $1 billion. Using crypto is very user-friendly in the country. No income or capital gain tax is levied on BTC.
The presence of a laissez-faire attitude towards the taxation of crypto investors makes the country very friendly to blockchain technology. Income earned from cryptocurrency is not part of the capital gains tax, which is a good thing for crypto traders.
Additionally, crypto transactions are exempt from value-added tax (VAT) and are considered a payment option, not an asset. The country accepts crypto payments and attracts investors by allowing them to earn from digital currencies using a bitfinex trade bot and without paying taxes.
Cryptocurrency accounts for about 17% of the funding raised from fintech companies in the country — more than 1 billion Euros was raised from the industry in 2022.
This country has established itself among those that support crypto-related transactions. In 2018, Lithuania became one of the first nations in the European Union to have regulations for initial cryptocurrency offerings, an initiative that encouraged people to embrace digital currencies in the country.
The country has also attracted various blockchain-related startups. People can transact legally using crypto. Exchanges need a license to conduct transactions, although obtaining one takes little time.
The island made news when its parliament passed three bills in 2018 that established a legal framework for crypto and blockchain technology, becoming the first blockchain island in the world. Binance, the world’s largest crypto exchange, moved into this country shortly after its establishment in 2017.
Malta aims to make the blockchain sector account for 10% of its GDP by 2027. An EU Blockchain Observatory and Forum report revealed that the sector had amassed over €141 million to date in the country.
Apart from its well-known reputation for being a money haven, the country is now an established crypto valley. By 2021, the country’s biggest crypto and fintech companies were valued at over $250 billion. Various parts of the country have made efforts to attract crypto investments.
The Swiss city of Lugano started accepting Bitcoin and Ether for tax payments. The city signed a memorandum of understanding with El Salvador to encourage the use of BTC in their regions. A “bitcoin office” was established in the southern Swiss city, headed by an honorary consul from El Salvador, to encourage BTC adoption among its 70,000 citizens. The initiative encouraged business owners to accept digital assets.
Meanwhile, the country has no capital gains tax on crypto investments for non-professionals. Mining crypto is allowed and isn’t subjected to particular laws and regulations.
This nation is among the most friendly to blockchain technology. Investments in related businesses equaled about $1.48 billion in 2021, which is nearly half of the total amount in the overall Asia Pacific area.
Singapore’s friendliness to cryptocurrency has attracted various big corporations. These include Gemini, a large exchange from the US that set up its Asian headquarters in the country. By November 2022, 31% of people in the country owned crypto, with BTC being the most popular.
The country has regulations that support cryptocurrency and protects consumers. Germany amended its Banking Act in 2020 to consider cryptocurrency. Firms seeking custody of virtual currencies must acquire a license from the Federal Financial Supervisory Authority.
Early adoption of crypto-friendly policies has boosted the sector’s steady growth. Sparkasse, a major savings bank, is offering bitcoin trading for its over 50 million clients in 2023. By 2022, about 5.8% of Germans owned crypto or about 4.9 million people.
Trading and purchasing crypto is legal in Germany. Cryptos held for over a year aren’t subjected to capital gains tax.