World’s Top 5 Crypto-friendly Countries

UTC by Mayowa Adebajo · 4 min read
World’s Top 5 Crypto-friendly Countries
Photo: Depositphotos

It should be noted that crypto-friendliness does not in any way equate to an outright lack of regulations. While some countries strive to be open-minded enough about crypto and other technological innovations, one can’t take away the fact that a lot of risks can be involved as well.

In a world where governments are keen on limiting or eradicating the illicit use of cryptocurrencies, crypto investors are also constantly in search of crypto-friendly countries to do their business. Truly, the importance of keeping the industry in check is plain for all to see. However, sometimes, these regulations also become bogus for investors, causing them problems that may as well be entirely avoidable.

Now, to avoid getting caught in the complications of most of these regulations, investors look to safer havens where they can deal their assets in peace and have softer or fewer laws to worry about. At other times, investors just want a place where they do not have to pay as much tax on crypto

The Most Crypto-friendly Countries

Recently, many more countries have been softening their stance on crypto and proving their open-mindedness towards it by any means. However, we have compiled a list of the top 5 crypto-friendly countries that you, as an investor, should probably be looking at right now. They are the pace-setters in crypto-friendliness, supporting technical innovation, whilst also championing the crypto adoption cause.

El Salvador

This should not come as a surprise though. And thanks to the popular ‘Bitcoin president’ Nayib Bukele, the country became the first country in the world to approve Bitcoin as a legal tender. El Salvador has also been dubbed a crypto haven by many. Most especially, for the fact that it exempts Bitcoin profits from any capital gains or income tax. And as a result, the country has been a major attraction to foreign investors.

Switzerland

Switzerland is the European version of El Salvador in terms of crypto-friendliness. The country also does not specifically tax any gains made from crypto transactions. Neither does it ask for crypto tax reporting as it sees crypto transactions in the same light as it does transactions done in local currencies. So, it is understandable why this great place has been home to some of the biggest crypto firms in the game. Amongst the firms are; Ethereum, the Diem Association, Tezos, and a host of others.

Malta

This little island has to be in the top 3. Malta was one of the first countries to establish itself as a welcoming nation to crypto. At least, since as far back as 2018. The famous blockchain island of Europe has so many laws that allow crypto businesses and individual investors to thrive. Thus, becoming a home to many crypto-based companies.

Recall when top crypto exchange platform Binance announced moving its operations to Malta. This was as the exchange became wary of stricter regulations from Hong Kong and China.

Germany

Germany is also one of the top 5 crypto-friendly countries in the world. As it were, the country taxes crypto just as it does any other asset. And quite unlike most other countries with stricter approaches to crypto, Germany encourages innovation and blockchain technology. It does so in the way it allows residents who hold their crypto assets for more than a year, to be exempt from capital gains tax. And if you perhaps, change your crypto to fiat, then you still do not have to pay any taxes. Except, of course, your profit is over €600, in which case, you then have to pay.

Singapore

By 2021 ending, global crypto rating company Coincub ranked Singapore as the most crypto-friendly country in the world. However, that ranking may not be true anymore. Recently, the country has been going back and forth with its regulations and lack of clarity is never a good sign for crypto investors. Nonetheless, the ranking at the time was largely due to its robust economy, its accomodating legislative environment, and high crypto adoption rate.

What about Security?

It should be noted that crypto-friendliness does not in any way equate to an outright lack of regulations. While some countries strive to be open-minded enough about crypto and other technological innovations, one can’t take away the fact that a lot of risks can be involved as well.

So with that forethought, there’s always a debate about how much regulation should be considered too much regulation. Nevertheless, considering moving to a tax-free haven is something that should be done, only after careful consideration of the existent laws in that place.

Would these also be your top 5 crypto-friendly countries as well?

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Mayowa Adebajo

Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.

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