Time and again, news has broken about a country banning the use of Bitcoin or making negative remarks about the crypto asset. In the face of all this, there are several countries around the world that have either legalized the use of the leading cryptocurrency or have no issues with its citizens actively trading the asset. Some of these countries include:
Malta also referred to as the “Blockchain Island,” is a cryptocurrency-friendly nation. The European country has developed crypto-friendly rules to govern the space. It even set up a lucrative tax incentive system to encourage companies in the industry.
Malta is also the first EU Member State and country to have defined a legislative framework to govern the Blockchain and cryptocurrency space. As such, the country has become a home to several top cryptocurrency companies. For instance, Binance cryptocurrency exchange, OKEx, Decentralised Ventures, and Coinvest are all based in Malta.
Cryptocurrencies, as well as digital currency exchanges, are legal in Switzerland. The Swiss Financial Market Supervisory Authority (FINMA), the country’s financial regulator also approved a Bitcoin bank, SEBA. In line with that, the Swiss Federal Tax Administration (SFTA) regards cryptocurrencies as assets that are subject to the Swiss wealth tax.
In November 2019, the German government passed a law that will allow banks to offer crypto services to their clients. BTCNN also reported on February 12, 2020, that over 40 German banks have already shown an interest in offering these services.
What’s more, cryptocurrency users in the country do not have to pay taxes for transactions that do not exceed 600 euros. Users are also exempted from tax if they hold their crypto-asset for at least a year.
The Australian government legalized Bitcoin in the country and categorized it as property subject to Capital Gains Tax (CGT). Since then, there has been a surge in the use of the leading currency in the country. Today, it is entirely possible to spend Bitcoin in Australia for a car, house, etc.
In March 2019, a luxury house in Australia was sold for $2.4 million in Bitcoin. Agnes Water is a town in Australia, that calls itself the first “digital currency town” in the country. Over 30 local businesses in Agnes Water accept Bitcoin, Bitcoin Cash, Litecoin and other crypto assets.
5. United States:
While financial regulators in the U.S. have been hot on the trail of crypto-related companies, Bitcoin is still being used in the country. For instance, 36% of U.S. small and medium-sized businesses accept Bitcoin. Also, there are exchanges such as Binance.Us specially tailored for users in the U.S.
It is also worth noting that the highest number of Bitcoin ATMs is in the U.S. Nonetheless, the U.S. Commodity Futures Trading Commission (CFTC) classifies cryptocurrencies as a commodity. The Internal Revenue Service (IRS), on the other hand, says it is an intangible property that needs to be taxed.
In December 2019, Croatia Post, the largest postal provider in the Republic of Croatia took the bold step to pilot a cryptocurrency exchange. Today, the platform allows tourists to the country as well as local residents to purchase Bitcoin, Ethereum, XRP, Stellar, and EOS. In line with that, 55 post offices in the country now allow the Croatian kuna (HRK) to be exchanged for Bitcoin.