There is a booming cryptocurrency industry in many parts of the world today. It provides the utmost flexibility and convenience in transaction processing. Additionally, it offers a dynamic and exciting new type of individual empowerment. There are also many other reasons why digital asset is flourishing. Paying with a cryptocurrency is cost-effective, secure, and prevents inflation. The most interesting part of this is that it is a private method that is self-managed and self-governed.
Our goal in this article is to find out which countries are the most cryptocurrency-friendly, where cryptocurrency can be used without any objections.
KEY TAKEAWAYS
- A recent survey found that 33% of Nigerians either own or use cryptocurrency.
- Sending money across borders has become cheaper with cryptocurrency.
- The regulatory climate has changed over the past year.
What Is Their Approach Toward Cryptocurrency Regulation?
The regulatory climate has changed significantly over the last few years, and there’s no going back. The SEC has issued a series of landmark rulings, while other agencies have made statements that hint at future actions. Many questions remain unanswered as to how this will all play out. However, some things are clear. The US government is not going to crack down on cryptocurrency. There has been much debate about whether or not cryptocurrencies should be regulated. It’s a complex subject that goes far beyond the scope of the article.
7 Top Crypto-Friendly Countries That Might Become Leaders
Researchers from the University of Nicosia in Cyprus have created a new ranking of countries most likely to adopt and use cryptocurrency. The study is part of a series on the future of money called “The Future of Money,” based on several indicators. These include factors such as the country’s economic growth, the level of trust in the financial sector, and the presence of cryptocurrency-friendly policies.
1. Canada
There are no laws in Canada that officially declare cryptocurrencies illegal. Thus, cryptocurrency businesses can operate freely in the country without any objections. People with such an open-minded attitude are more likely to try something new and make the most of new technology to advance and succeed in the future. Our opinion is that this kind of attitude will not last long here. Nevertheless, Canada is regarded as a crypto-friendly nation.
Bitcoin ATMs are available in 1,464 locations in Canada. One can say that Canada is a country that allows cryptocurrency.
2. Slovenia Cryptocurrency Leading Country
Slovenia makes up the top ranking among all other Bitcoin-friendly countries in Europe. It has been announced that the government is encouraging the use of Bitcoins and other cryptocurrencies. Slovenia does not include a tax on individuals who earn income from trading Bitcoin (due to fluctuations in the cryptocurrency market). Similarly, Slovenia does not consider cryptocurrency mining to be a VAT transaction.
3. Netherland
A positive attitude towards cryptocurrencies is also evident in the Netherlands. The authorities believe this could contribute to the improvement of the country’s economy. People use cryptocurrencies without hesitation in the Netherlands since it has no strict regulations against them.
This makes the Netherlands one cryptocurrency-friendly country since it follows the Financial Action Task Force (FATF). However, The Dutch National Bank (DNB) regulates cryptocurrencies in the Netherlands.
4. Portugal
Portugal is bound to reach the top of your list if you are looking for some of the world’s most crypto-friendly countries. Tax-free cryptocurrency trading is available in Portugal, which has already attracted many crypto traders.
The enthusiasm related to crypto in Portugal is very high, and Portugal adopted a “Digital Transition Action Plan” in April 2020 to promote the digitization of the country. The government claimed that this plan would foster the right environment for digital transformation and business innovation. Moreover, there are “Technological Free Zones,” which will enable the testing of blockchains and other technologies in the field. Consequently, Portugal is the country that supports cryptocurrency the most.
5. Germany Cryptocurrency Leading Country
The German government has a unique approach to cryptocurrency taxes. There is a strong preference for individual investment in the country, and bitcoin is regarded as private money rather than a currency, commodity, or stock. The German capital gains tax does not apply to Bitcoin and other cryptocurrencies if they are held for more than a year. Neither the sale nor the purchase of these items is subject to VAT.
If you transfer the funds to cash or other cryptos within a year, you are not required to pay taxes on your profit if it is less than €600. Therefore, Germany is among the countries that are friendly to cryptocurrency.
6. Singapore
Among Southeast Asian nations, Singapore is a hotbed of fintech innovation. According to the Monetary Authority of Singapore, the cryptocurrency ecosystem should be closely monitored to prevent money laundering and other criminal activities. In this way, Singapore has become a crypto-friendly country.
Singapore does not impose a capital gains tax. Neither individuals nor corporations are taxed on cryptocurrency funds. However, corporations based in Singapore operating as crypto trading companies or accepting crypto payments are subject to income tax.
7. Switzerland
The first Swiss banks began offering business accounts to crypto companies in 2018, realizing that banking channels would encourage legitimate businesses and eliminate fraudsters. Some locations in Switzerland recognize Bitcoins as legal tender, and cryptocurrencies are classified as assets. Individual traders who trade or hold cryptocurrency as investments in their own accounts are not required to pay capital gains tax. However, the income from business transactions made through authorized professional traders, on the other hand, is taxed as business income.
Crypto Valley is a name given to a city in Switzerland called Zug. It is a cryptocurrency hub home to blockchain startups, businesses, shops, and entrepreneurs, and this crypto valley offers tax-free investments to crypto investors. 2016 was the first year that Bitcoin payments were accepted in Zug. It is fair to say that Zug makes Switzerland the best country for cryptocurrencies.
