Crypto-Friendly Countries 🔑💰🌍
Guide
January 2025
Cryptocurrencies have become increasingly popular in recent years, with traders seeing them as a game-changer in the finance scene. Digital assets provide investors with freedom that is absent in the traditional banking system. Despite some negativity surrounding cryptocurrencies, many countries are opening their doors to them. In this article, we will take a look at the most crypto-friendly countries across the world.
🇵🇹 Portugal
Portugal is considered one of the most crypto-friendly countries worldwide. The laws regarding crypto are some of the most lenient in the world. Tax authorities do not levy capital gains tax on traders of crypto across the country. Exchanging one crypto to another is also subject to free taxation, and individuals who receive payments are not subject to income tax. Portugal also has a few programs that would ease crypto investors into the country.
🇨🇭 Switzerland
Switzerland is notable for its high rate of privacy and low-risk rate in its banking sector. It is also one of the few crypto-friendly countries. However, the regulation of digital assets is determined by the region system. Some regions may decide to tax Bitcoin traders, while others may not. Zurich, for example, does not levy tax on movable private wealth, including digital assets. However, miners have to pay income tax on the gains from their business.
🇩🇪 Germany
Germany exempts citizens who hold any digital asset for a year and more from paying tax. This exemption does not have a limit as traders can hold any amount that they want. Investors who hold their assets within a year would be subject to pay capital gains tax if they hold assets worth more than $712. Just like most crypto-friendly countries, investments holding crypto will pay capital gains tax. In a nutshell, long-term investors are the major winners of trading crypto in Germany.
🇸🇬 Singapore
Singapore is one of the most stable countries globally, providing businesses with the best place to grow. It is said to have one of the biggest FinTech across Asia, and the Monetary Authority of Singapore encourages the growth of digital assets. Singapore does not levy capital gains tax on both individuals or businesses holding assets, but companies using crypto for payments or trading will be subject to income tax.
🇲🇹 Malta
Malta has easily cemented its place as the go-to area for crypto investors who want to set up a business. Many crypto exchanges and blockchain companies have their branches in the country, including Binance. Investors turn to Malta because it is in the European Union, allowing crypto ventures in the country to operate across Europe for free. Malta also recognizes Bitcoin as a store of value and a medium of exchange, with no levy of capital gains tax for long-term holders.
🇧🇲 Bermuda
Bermuda regulates crypto dealings, with trading and selling, providing payment via crypto, and a few others not taxed. Bermuda is one of the most crypto-friendly nations, attracting a huge pool of traders and businesses into the country. It approved its first ETF, the Hashdex Nasdaq Crypto ETF, in 2020, showing that Bermuda is up there with other crypto-friendly countries.
🌎 Other mentions
Slovenia and Malaysia are also worth mentioning. Slovenia taxes capital gains on the sale of Bitcoin, but countries that take payment in crypto are subject to corporate tax. Malaysia does not levy any tax on crypto holdings, but the country does not yet have clear regulations surrounding digital assets.
In conclusion, crypto-friendly countries are those that offer a friendly environment for cryptocurrency trading and investments. The countries mentioned above are leading the way in the regulation and adoption of digital assets, making them great options for crypto investors
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