Top 12 friendliest countries for crypto investment by DailyCoin

Cryptocurrency is the whale of a sea in today’s global finance, and there’s a reason why 300 million people own it. In particular, it has changed how we send and receive payments, providing lower transaction costs, making virtually instantaneous payments, reducing risk and offering an investment diversification portfolio for many users.

One would deny not believing that the crypto world is growing enormously and that it can only get bigger with time. As such, more and more people want to spend money and time on it. Although not all countries in the world are open to cryptocurrency adoption, many have so far emphasized it and created fertile ground for crypto to flourish.

As a passionate crypto investor or trader by luck or chance, you will like to make strategic choices regarding crypto investment; one way to do that is to know the most crypto-friendly countries suitable for your type of investment. In fact, that’s why we’ve curated this list to serve as a guide for you. That said, here are the most Bitcoin-friendly countries in the world, their regulations and projects.

12. Switzerland

Swiss banks were actually the first in the world to offer crypto companies business accounts in 2018. Today, the country classifies cryptocurrencies as assets, and is recognized as legal tender in some places.

In terms of regulation, cryptocurrency exchanges are legal in Switzerland as long as they are licensed and therefore regulated by the Federal Financial Market-Supervisory Authority (FINMA).

Switzerland generally imposes Swiss wealth tax and income tax on cryptocurrencies based on worldwide income and worldwide wealth tax values.

Switzerland is famous for the small town of Crypto Valley, which houses many crypto projects. Crypto Valley now has 11 unicorn crypto projects valued at over $1 billion, including , , , Aave, Cosmos, , Tezos, Dfinity, Near, Nexo, and Diem (formerly Libra).

11. Luxembourg

Luxembourg is a country that has opened its arms to cryptocurrency, having been the first country in Europe to license virtual currency exchange platforms called Bitstamp as payment institutions in 2016.

The country officially recognizes cryptocurrencies as currencies, but has no clear rules for cryptocurrency. In any case, the government’s attitude to crypto is positive and inclusive.

In addition, the country’s CSSF regulates cryptocurrency exchanges in Luxembourg, and they must follow the same regulations as other financial organizations. Some popular crypto projects in Luxembourg include Bitcoin, Ethereum, and Zcash.

10. Gibraltar

Gibraltar is a small country located south of Spain that is attracting blockchain-based companies, as it is known to be an attractive place to do business.

In 2018, Gibraltar introduced its Digital Ledger Technology (DLT) Regulatory Framework following extensive engagement with the crypto industry. Under the framework, exchanges must be registered with the Gibraltar Financial Services Commission (GFSC).

Three months ago, the government published guidance that clarifies the responsibilities of providers of digital asset services seeking regulation.

9. El Salvador

Literally no one on the internet could have missed that El Salvador officially legalized the use of Bitcoin as legal tender in 2021, making it the first in the world to do so.

Crypto regulations fall under the jurisdiction of the government, which has since given Bitcoin its full support. The BTC Law Regulation provides the regulatory framework for Bitcoin Service Providers (BSPs), including anti-money laundering programs.

As we know, the big popular crypto project in the country is Bitcoin. The Central American country is hailed as one of the best crypto tax-free jurisdictions in the world.

8. Singapore

In Southeast Asia, Singapore ranks among the countries with the friendliest approach to cryptocurrency adoption. The Monetary Authority of Singapore (MAS) fully supports the growth of cryptocurrency in the country.

Specifically, MAS implemented legislation to regulate the cryptocurrency industry; by introducing and passing the Payment Services Act (PSA) on 28 January 2020, MAS has been able to regulate traditional and digital token-based payments.

Additionally, Singaporeans have no capital gains tax on cryptocurrency. Individual and corporate cryptocurrency funds are not subject to taxation. However, if a company is based in Singapore and operates as a crypto trading company or accepts crypto payments, it is subject to income tax.

The country is also prominent for being the headquarters of several crypto projects, including the likes of Zilliqa, Qtum, Kyber Network, Bluzelle and many others.

7. Estonia

Estonia is one of the few countries in the world that was the first to legalize cryptocurrency activity and continues to follow the development of technology.

In 2017, a law was introduced in Estonia that enables entrepreneurs to apply for a license in two directions: exchange of virtual currency to FIAT/virtual currency and provision of virtual currency wallet services.

In this part of the world, crypto regulation is largely made by a regulatory body known as the Estonian Financial Intelligence Unit (FIU). It oversees the cryptocurrency licensing process and crypto-related anti-money laundering.

In Estonia, transactions with Bitcoin and other cryptocurrencies are taxed in the same way as any other business activity. Estonia has crypto projects such as Crypterium, Stex, Ironx and Coinsbit.io.

6. Germany

Germany is loved by crypto investors when it comes to cryptocurrency taxation. According to German law, individuals do not have to pay capital gains tax on crypto assets held for more than one year.

Regulation of crypto in the country is made by the Federal Financial Supervisory Authority (otherwise known as BaFin), which oversees the rule of activities for both traditional fiat banking and virtual assets.

Likewise, the country has since implemented the EU’s various anti-money laundering directives (i.e. 4, 5 and 6 AMLD) on cryptocurrency, making Germany one of the most compliant in this regard.

Furthermore, Germany has recently developed technology that allows investors to buy and sell securities on the blockchain against central bank money. Today, the country has several crypto projects such as Spielworks, LUKSO and MXC.

5. Portugal

Portugal is certainly considered among the most crypto-friendly countries in the world. The Portuguese Tax Authorities (PTA) do not consider capital gains resulting from the sale of cryptocurrencies to be taxable.

Regulatory-wise, no specific laws or regulations govern the issuance of cryptocurrencies; Therefore, cryptocurrencies are not prohibited and investors are allowed to buy, hold and sell these assets.

The Portuguese law on money laundering was extended in 2020 to include cryptocurrency and is overseen by the Bank of Portugal (“BoP”). AppCoins and KimiaCoin are two of the active crypto projects in Portugal.

4. The Netherlands

The Netherlands has a welcoming attitude towards cryptocurrencies. The country believes that it can potentially contribute to improving the economy of the country.

Since the Netherlands does not have any strict rules against the same, people use cryptocurrency freely. However, cryptocurrencies are still not accepted as digital money. They follow the standards required by the Financial Action Task Force (FATF).

The Dutch National Bank (DNB) oversees crypto service providers’ compliance with the Sanctions Act of 1977. Portugal is considered a tax haven since crypto trading has been tax-free since 2018.

3. Canada

Canada has no legislation stating that cryptocurrencies are illegal; Therefore, many cryptocurrency companies can operate freely in the country.

Cryptocurrencies are primarily regulated under securities laws as part of the securities regulator’s mandate to protect the public in Canada.

Currently, 1,464 ATMs in Canada accept Bitcoin, which is another reason why the nation is considered one of the most crypto-friendly countries. Some crypto projects originating from the country include Coinberry, Coinsmart and Bitbuy.

2. Malta

Malta is seen as being at the forefront of embracing this revolutionary innovation, with many investors keen to dive into crypto in the country.

On July 4, the Maltese Parliament passed three bills, giving any interested investor a clear picture of the legal framework required to establish a legitimate cryptocurrency business in Malta. They include:

I. Malta Digital Innovation Authority Act

ii. Act on innovative technological arrangements and services

iii. Virtual Financial Assets Act

The MFSA is Malta’s leading regulatory authority responsible for the ongoing supervision and licensing of companies in the digital space. VAIOT and Xcoins are two of several active crypto projects in Malta.

1. Slovenia

Slovenia ranks at the top as it is very welcoming towards crypto. Individuals who benefit from trading Bitcoin (due to fluctuations in the cryptocurrency market) are not liable for income taxation in Slovenia. Cryptocurrency mining is also not considered a VAT transaction in Slovenia.

In another attempt, Slovenia amended its law on the prevention of money laundering and terrorist financing, harmonizing it with EU directives to protect investors.

Although Slovenia is not completely crypto-tax-free considering that some areas of crypto-operation in the country are taxed, it remains one of the friendliest when it comes to crypto-taxes, thanks to its low tax rates and generous policies.

So far, the country has 72 establishments and 33 sports venues that accept digital assets as a form of payment.

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