Friday, November 22, 2019

Top 12 Cryptocurrency Friendly Countries

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Babatunde Modupe
I am a freelance writer, Poet, blogger and cryptoenthusiast that is totally interested in blockchain technology and sharing it's Information with others.

Nothing interests a cryptocurrency enthusiast than a suitable environment for crypto holding or trading. While many countries are making efforts on friendly regulations for the industry, some countries are cryptocurrency havens.

Malta

Topping the list of countries that have adopted cryptocurrency is Malta. Malta is part of the eurozone and uses Euros (EUR) as its currency. The country has turned to a haven for crypto firms and businesses due to its tax-friendly environment, even for foreigners. Though cryptocurrencies are not seen as a legal tenders, it’s recognized by the government as a medium of exchange, a unit of account, or a store of value.

The country has a prime minister that’s fully in support of virtual currencies – he made a case for cryptocurrencies and blockchain adoption at the UN’s general assembly. Though banks are not in support of cryptocurrencies as it distrupts their conventional way of doing business, the conducive environment and leadership have made the country a haven for a cryptocurrency establishments.

Bermuda

Bermuda is a small Caribbean Island with a population of around 65,000. The country, over the years, has attracted firms purposely because of its liberal taxation policy. This has equally been extended to cryptocurrency as the country aims at becoming a haven for the cryptocurrency industry. The country has been pursuing this goal with friendly regulations for the industry.

Switzerland

Switzerland is an eastern European country and has a friendly stance towards cryptocurrency. The intention of the country to become a haven for crypto businesses was declared by its Economic Minister in January of 2018. Thus far, the country’s region, Zug, known as “crypto valley” have adopted crypto friendly policies.

Gibraltar

Gibraltar is a tiny country located South of Spain and is crypto friendly. Gibraltar formulated the Distributed Ledger Technology Regulatory Framework rules in January 2018, granting a formal license to cryptocurrency related companies in the region. Coperate tax is fixed at 10 percent in the country since 2011.

Further, the legal framework for the cryptocurrency industry is on the way; this will clarify tax issues. Also, financial institutions in the country are crypto receptive.

Slovenia

Slovenia is a central European nation with a population of around 2 million. It has a crypto-friendly government and financial institutions there don’t restrict those engaged in bitcoin transactions. Bitcoin and other cryptocurrencies are classified as virtual currencies. This means Slovenia does not tax Bitcoin as either money or security. But profits are taxed under income tax.

Singapore

Singapore is a Southeastern Asian Island nation with a population of 5.6 million people. The Inland Revenue Authority of Singapore has decided that cryptocurrencies are to be viewed as goods and not as currency. Any company dealing with cryptocurrency is required to pay GST (Goods and Services Tax) when trading Bitcoin or using it for purchases. This tax is currently set at 7%.

The government is still discussing better means to regulate the industry, and it equally has a few crypto friendly financial institutions.

Estonia

Estonia is a Northern European country and a member of the eurozone. Cryptocurrency is seen as an alternative currency, but not as security. People or companies conducting cryptocurrency transactions must be registered as providers of business services. It has a crypto-friendly financial institutions, and profits are subject to capital gains tax (of around 25%) but exempt from VAT (20%).

Georgia

Georgia is an Eastern European nation of a population close to 4 million people. The government is welcoming of crypto-related investment and has close ties with large Bitcoin miner provider, Bitfury. But cryptocurrency is not seen as a legal tender.

Tax in Georgia is relatively low. Companies situated in the Poti free industrial zone benefit from a preferential taxation scheme. Within this zone, there is no VAT, dividend, profit or property tax.

Belarus

Belarus is an Eastern European nation of nearly 10 million people. It has friendly crypto regulations. Under the ordinance, Belarus has waived all taxes on cryptocurrency transactions and income for five years, till January of 2023. In other words, no taxation of mining, trading, or other business activities involving crypto. Bitcoin gifts and inheritances are also exempted from tax.

Hong Kong

Hong Kong is a Special Administrative Region of China, located along its southern coast. The country’s banking sector is not so friendly with cryptocurrencies, but it has a crypto-friendly government and regulations as well. Cryptocurrency is exempted from both VAT and capital gains taxes in Hong Kong.

Japan

Japan is a leading country in the crypto space. Japan was the first country in the world to approve Bitcoin as legal tender. The nation was also the first to pass broad regulations to its 32+ cryptocurrency exchanges, aimed at improving their security. Crypto profits are taxed, but not holdings.

Germany

Germany has a population of nearly 83 million people. Cryptocurrency is regarded as a unit of account, private money, and its an acceptable means of payment in the country by Germany’s National Tourist Board in 2018. It has a cryptocurrency friendly financial system.

These countries can be considered as places where crypto businesses and establishments can flourish because of their friendly stance toward cryptocurrencies.

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