Top 10 Countries for Crypto-Friendly Business Setup
1.
As crypto regulations are still disparate in some areas of the world, one way to ensure that your crypto investments are safe is by setting up your business in a country that is known for being crypto-friendly.
Singapore
Singapore is often regarded as one of the world’s most crypto-friendly jurisdictions, and for good reason
As a developed and business-friendly economy, the rules in place are intended to assist entrepreneurs, start-ups, and multinational organizations in growing and flourishing
The country has created a solid legal framework to enable and encourage a vibrant crypto sector
As a result, it has attracted investors and organizations, making it extremely appealing to crypto investors, traders, and organizations
The Monetary Authority of Singapore, the Asian fintech hub’s central bank, is working on a set of legislation to create a balanced system in which cryptocurrency can operate
2. Switzerland
Switzerland was one of the early bright lights in the world of cryptocurrencies
Swiss banks were the first to allow crypto businesses to create business accounts in 2018, which was a significant step toward increasing legal cryptocurrency use and decreasing fraud
Switzerland already recognizes cryptocurrencies as an asset, and certain localities even accept Bitcoin as legal tender, making it one of the most Bitcoin-friendly countries
3. The Netherlands
The Netherlands adheres to the worldwide Financial Action Task Force, or FATF, guidelines, and does not impose any needlessly costly rules against cryptocurrency
This makes it one of the most welcoming countries for cryptocurrencies, which is now regulated by De Nederlandsche Bank NV (Dutch National Bank)
Authorities are tolerant of cryptocurrency, believing that it has the potential to benefit the country’s economy
As a result, the general public has faith in bitcoin
4. El Salvador
El Salvador is not simply staying out of the way of Bitcoin and other cryptocurrencies, the country has been more active in the market, with President Nayib Bukele proposing cryptocurrency-backed bonds
El Salvador recently made headlines when it became the first country to accept Bitcoin as legal tender alongside its official currency, the US dollar
El Salvador is crypto-tax-free, which means that the country does not tax revenue or profit from cryptocurrency investments or exchanges
It is a popular destination for cryptocurrency investors and users because it is a Bitcoin-legal country
El Salvador has low crypto taxes, making it one of the world’s most crypto-friendly countries
5. Vanuatu
After the recent reveal of Satoshi Island, a private crypto utopia, this Pacific island-state has earned a well-deserved slot on the list of Bitcoin-friendly countries
Vanuatu sees Satoshi Island as a vibrant tourism prospect, allowing it to attract new people and investments as the first country to accept Bitcoin payments for issuing citizenship
This clearly places Vanuatu among the most crypto-friendly countries
However, the country is keeping its plans mainly hidden until its administration is ready to reveal its vision for a crypto-tax-free utopia
6. Germany
Unlike the other most crypto-friendly countries on this list, Germany is one of the few that has already abolished crypto taxes
Unlike the rest of the European Union, Germany encourages private investors to keep their cryptocurrency profits by exempting Bitcoin and other cryptocurrencies from capital gains taxes if kept for at least a year
Corporations must still pay the same taxes on crypto earnings as they do on regular income
Germany’s rules, particularly those concerning taxes, have made it one of the most Bitcoin-friendly countries, with over half of Germans already investing in cryptocurrencies
7. Malta
Malta is located in the Mediterranean and is home to both blockchain initiatives and exchanges, like Binance, providing a strategic location as well as a supportive regulatory climate
Because Malta is a member of the European Union, cryptocurrency projects based there can operate everywhere in the EU
Since 2018, Malta has worked to establish itself as one of the world’s most crypto-friendly countries by attracting more crypto enterprises and becoming a “digital island”
It attracts crypto investors and inventive thinkers as one of the top Bitcoin-legal countries, with legislation designed to discourage fraud while not limiting healthy growth and progress
So far, their campaign has been successful, drawing billions of dollars in cryptocurrency investments to their borders and it is now regarded as one of the top countries for crypto taxation
8. Cyprus
Cyprus, together with seven other European Union states, signed a declaration in 2018 to collaborate and promote blockchain technology
Since then, the little Mediterranean island nation has become acknowledged as one of the most crypto-friendly countries in the world, making significant strides in the realm of Bitcoin-legal countries
Although it does not regulate cryptocurrencies, the Central Bank of Cyprus has released a set of official guidelines aimed at protecting investors and reducing the risk of losses due to fraudulent conduct
In addition, the Cyprus Securities and Exchange Commission has developed an Innovation Hub to foster and sustain open knowledge sharing
9. Bermuda
Bitcoin-friendly Bermuda approved the Digital Asset Business Act in 2018
By doing so, it established itself as one of the most crypto-friendly countries known to investors, establishing a legal framework under which individuals and entities could buy, sell, and invest in cryptocurrency and other digital assets, as well as operate cryptocurrency exchanges or payment services
Bermuda is cryptocurrency tax-free, which means it does not now tax income or capital gains, making it even more appealing to digital businesses
10. Portugal
Portugal is one of the greatest countries for cryptocurrency taxation since it sees cryptocurrencies as any other legal tender rather than an asset
This means that most bitcoin transactions are tax-free, with only revenue from professional cryptocurrency activity subject to taxation
The Portuguese government also permits firms to pay employees in cryptocurrencies and makes it simple to buy cryptocurrency on a variety of platforms
To take advantage of these advantageous policies, crypto holders must be residents or citizens and it has a Golden Visa Program that streamlines the procedure and allows people to become residents by investment
REFERENCE
12 Most Crypto-Friendly Countries for Crypto Investors and Traders
Cryptocurrency has changed the way we send and receive payments, providing lowered transaction costs, virtually instant…learn.bybit.com
DISCLOSURE:
None of these articles constitutes financial advice. Articles are highly summarised to make it easy for the reader and save your time, so please DYOR further before putting your hard-earned money into any product mentioned.
Please note that the tech industry evolves rapidly and this article's information is correct at the time of publishing. As Heraclitus said, “Change is the only constant”, so if anything sounds old or off please holler on the socials or comment here so everyone stays peeled.
Affiliate links may be included in these articles and signups through these links are highly appreciated. These links support better research and quality writing and help you find the right products with less hassle, so it’s a win-win :) Great care is taken to ensure the links are from authentic, non-spammy sources.
Stay up to date on the latest stories by signing up for the newsletter. Please don’t mark these emails as spam, instead, you can easily unsubscribe