Crypto is the international currency and some countries are friendlier to it than others. You all know that there is no Anti-Crypto and governments are planning to approach it in some way.
You all might be thinking that- Is cryptocurrency the future?
There is no doubt about it. And if you are planning to invest in cryptocurrency by starting your own business, then it must not be given a second thought.
Now you might be thinking that which countries are using cryptocurrency?
There are a lot of countries that are using cryptocurrencies and I have listed a few of them below-
At the top of the list is Malta. It is a part of the eurozone and Euros (EUR) is its currency. Malta is famous for its tax-friendly environment even for foreigners due to which it has become a shelter for crypto businesses.
Also, the prime minister of the country supports the Cryptocurrency to the fullest and he also made a case for cryptocurrencies as well as for blockchain adoption at the UN’s general assembly.
The small Caribbean Island- Bermuda with a population of around 65,000 has successfully attracted several firms because of its liberal taxation policy. This is directly positively affected cryptocurrency as it has become a cryptocurrency hub for industries.
The Economic Minister of an eastern European country- Switzerland declared in January 2018 about their intention to become the hub of crypto businesses. Till now, the country’s region, Zug, known as “crypto valley” has adopted crypto-friendly policies.
The next crypto-friendly country is the tiny country located in the South of Spain- Gibraltar. In January 2018, the country granted a formal license to cryptocurrency-related companies in the region by formulating the Distributed Ledger Technology Regulatory Framework rules.
Also, the legal framework for the cryptocurrency industry is on its way; this will clarify tax issues. Not to forget, the financial institutions in the country are crypto receptive.
Slovenia- a Central European nation that has a crypto-friendly government. The financial institutions do not restrict bitcoin transactions. Bitcoin and other cryptocurrencies are classified as virtual currencies. By this, we can say that the country does not tax Bitcoin either as money or security. But the profits earned are taxed under income tax.
The Inland Revenue Authority of the Southeastern Asian Island nation- Singapore has decided that the cryptocurrencies must be considered as goods and not as currency. Any company that will deal with cryptocurrency will have to pay Goods and Services Tax (currently set at 7%) when trading or using Bitcoin for purchases.
Cryptocurrency is the alternative currency for Estonia- the Northern European country and a member of the eurozone but it is not considered as a security. Companies or an individual conducting cryptocurrency transactions must be registered as providers of business services.
Estonia has a crypto-friendly financial institution, and profits are viewed as capital gains tax (of around 25%) but exempt from VAT (20%).
The Eastern European nation- Georgia is welcoming crypto-related investment with open arms and has close connections with large Bitcoin miner provider, Bitfury. But, cryptocurrency is not considered as a legal tender.
Belarus- the Eastern European nation has crypto-friendly regulations. The country, under the ordinance, has abandoned all taxes on cryptocurrency transactions and income for five years i.e. until January 2023.
The government of Hong Kong which is a Special Administrative Region of China is crypto-friendly and it is exempted from both VAT as well as capital gains taxes on the southern coast of China.
Japan was the first country to approve Bitcoin as legal tender in the world and is also a leading country in the crypto space. 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.
By the National Tourist Board in 2018, in Germany, Cryptocurrency is regarded as a unit of account, private money, and it’s an acceptable means of payment. It has a crypto-friendly financial system.
These countries can be considered as places where crypto businesses and establishments can grow because of their friendly nature towards cryptocurrencies.