ZoneBitcoin EditorialIt's been 14 years since Bitcoin was launched and since then, the ecosystem has greatly developed even if we are still far from full potential. The crypto-asset industry is becoming ever more important and there are more and more companies, institutions and individuals entering this universe.
Over the years, countries have taken action and developed regulations specific to this industry. For the majority of countries, it appears that the legal laws are still vague and many countries, like the United States, are still seeking the status to be granted to certain cryptocurrencies... While some countries like China have tried to ban on the contrary, cryptocurrencies from other countries have contributed to their growth.
Indeed, countries have anticipated the commercial and financial opportunities that blockchain technology could bring. These countries then showed themselves to be very tolerant towards players in this industry and they are what can be described as crypto-friendly countries.
Here we present to you the non-exhaustive list of the 10 countries which prove to be the most crypto-friendly, at the time of writing this article.
It seems obvious that this list will be expanded in the more or less near future, if we consider that thehyperbitoinization of the world is indeed activated.
El Salvador 🇸🇻
Of course, we start this ranking with El Salvador which is by far the most crypto-friendly or bitcoin friendly country should we say. In 2019, President Nayib Bukele, who became the 43rd president of the nation, decides in 2021 to make bitcoin, legal tender in El Salvador. At that time he had bought 400 bitcoins and has since decided to buy bitcoin every day on behalf of the country.
El Salvador has decided to go even further by even offering bonds financed in Bitcoin ( Volcano Bond"). Similarly, to push the adoption of bitcoin in the country, the government has set up a dedicated wallet called Chivo. All residents can download it and use it to make payments in dollars or BTC. This should push the adoption of bitcoin in the country, even if the work to be done is enormous, since El Salvador is one of the least banked countries in the world. It is a challenge that is up to the president, who is increasingly showing his determination to make the country a real hut for bitcoiners from all over the world.
The country also has the first " bitcoin village » represented by the seaside resort The Zonte. It very quickly became an experimental town of reference for many other bitcoin villages around the world. The essential concept is to create a circular economy based on bitcoin by promoting the creation of businesses and services linked to cryptocurrency.
—> Read the article: Nayib Bukele: “Stop drinking the Kool-Aid of the elites”
->Here's why the president of El Salvador wants to buy one Bitcoin every day:
Malta 🇲🇹
Malta was one of the first crypto-friendly countries at a time when many countries decided to limit or even ban cryptocurrencies. Malta has certainly contributed to the rise of crypto companies in Europe. Indeed, the Maltese island is part of the European Union and thus facilitates banking partnerships with these companies. Likewise, taxation is also interesting in Malta, which has naturally encouraged crypto companies and individuals to set up there.
For example, the first country in which Binance registered in Europe was Malta. There are also many exchange platforms based in Malta as well.
The country had announced it was creating an attractive hub for crypto businesses with advantageous taxation.
The Central African Republic 🇨🇫
After El Salvador, the Central African Republic is the second country in the world to have legalized bitcoin as a payment currency. President Faustin-Archange Touadéra also decided to create a new state currency backed by bitcoin and called sango, the name of the language mainly spoken in the country.
The Sango cryptocurrency is part of a broader initiative to digitize all administrative services in the country, and use blockchain technology wherever possible. The Central African Republic is one of the countries with the most natural resources (diamonds, gold, oil, etc.) which are not (or barely) exploited. It is then the objective of the Sango initiative to attract foreign funds to develop the country. Thus, sangocoin investors will then be able to own land and citizenship and create businesses, with zero taxation on cryptocurrency income.
However, the country is going through a difficult political period with complex internal and external conflicts that hinder the optimal development of the initiative. However, the initiative is nonetheless put on hold and regularly, the project attracts more and more investors and convinced bitcoiners.
Vanuatu 🇻🇺
Vanuatu is a small island nation in the Pacific and is known for offering citizenship to those who invest in the country, particularly those who invest in cryptocurrency. This is part of the citizenship offered by society Plan B Passport, which helps crypto holders to have a second passport to escape crypto taxes. Vanuatu passport holders can travel to over 96 countries without a visa, including Singapore and the United Kingdom.
Another particularity of Vanuatu is to have pushed the creation of a nearby island, which would be entirely dedicated to cryptocurrencies. This is the project " Satoshi Island » which is currently under construction. The plots of land are sold in the form of NFTs (available on OpenSea) and it will be possible to build homes for individuals and offices for crypto companies.
Everything has been designed to ensure that Satoshi Island attracts crypto holders from around the world, with taxation and other financial benefits for residents. A true tax haven in both senses of the word 😉
–> To learn more, you can read our article on “ Satoshi Island"
Switzerland 🇨🇭
How not to mention Switzerland in this ranking of the most crypto-friendly countries. It is the essential country in Europe because in 2018, the country was one of the first to authorize crypto companies to open professional accounts. There are many crypto companies established in Switzerland whose platform Youhodler, leader in cryptocurrency lending.
Switzerland has thus, like Malta, largely contributed to the growth of cryptocurrencies within Europe.
Even more, recently, the city Lugano located in the canton of Ticino has accepted payments made in bitcoin. Thus, the first company to accept bitcoin was the city's McDonald's. It is undeniable that Lugano represents a huge step towards the adoption of cryptocurrencies.
–>Read the article: 🇨🇭 Swiss crypto companies you absolutely need to know
Cyprus 🇨🇾
Cyprus is also one of the most crypto-friendly countries. Already in 2018, the Cypriot government met with 6 other Southern European countries to sign a visa declaration to help the use of blockchain in the region. The objective was then openly to attract investments in blockchain technology within these countries.
It is one of the rare countries that very quickly understood the importance that blockchain could have in many sectors. Thus, Cyprus has attracted many crypto companies by creating a precise and advantageous regulatory framework for them.
For example, we can cite the first university with courses related to blockchain. The University of Nicosia was notably founded and supported by the bitcoin evangelist Andrea Antonopolous.
Bermuda 🇧🇲
Bermuda is a British archipelago located in the North Atlantic Ocean which has always been very open to cryptocurrencies. In 2018, the country signed the Digital Asset Business Art which provides a precise framework on the regulation in terms of holding cryptocurrencies. While many countries still suffer from vague and uncertain jurisdiction, Bermuda quickly stood out by developing a regulatory framework adapted to the crypto industry.
The country's taxation is advantageous for companies working in cryptography. There is no gains tax for capital in crypto. Unsurprisingly, the country has attracted billionaires in cryptocurrencies since the introduction of this tax.
Furthermore, in 2020 the country launched the ETF "Hashdex Nasdaq Crypto" (HDEX.BH), one of the first and largest funds in existence.
Portugal 🇵🇹
For years now, many retirees have moved to the country for the quality of life (and tax incentives). However, today, it is also crypto-holders who are closely interested in Portugal. The government legally considers that cryptocurrencies are means of payment exempt from VAT, which then allows many companies to establish themselves in the country.
Moreover, the country also allows employers to pay their employees in cryptocurrencies, something that is still rare internationally.
Hong Kong 🇭🇰
Hong Kong is from a relatively complex political point of view in that it is indeed an independent country but nevertheless remains a special administrative region of China. However, China is not what we call a crypto-friendly country although many miners are present on its soil. However, different from China, Hong Kong has a policy that can largely be described as tolerant towards cryptocurrencies.
Indeed, bitcoin is exempt from VAT and there is very advantageous taxation on capital gains. In Hong Kong, cryptocurrencies are classified as virtual goods. Thus, it can be very interesting for crypto companies that wish to set up there. Likewise, it is the ideal place with Singapore to target the Asian market, which is very open to cryptocurrencies.
Japan 🇯🇵
Even if today, we don't think directly of Japan when we talk about crypto-friendly countries, you should know that it was one of the first countries to be open to cryptocurrencies, and to bitcoin in particular.
For what? There are different elements of answer but one of the most important facts is certainly the fact that at the beginning, many people thought that the name of the inventor Satoshi Nakamoto was not a nickname but the real name of the inventor of Bitcoin. Many people therefore wrongly thought that the inventor of Bitcoin was Japanese.
In fact, very often and even today even if we know full well that it is not the Japanese Dorian Nakamoto, we tend to use him as an illustration of Satoshi Nakamoto. (Note: He, she or the group of people behind this nickname are still unknown to this day and Craig Wright is not Satoshi Nakamoto either, due to lack of evidence..).
Thus, Japan was one of the first countries in the world to recognize bitcoin as a means of payment. This is also why you will find many stores in the country that accepts bitcoin.
Likewise, we can recall that one of the first exchange platforms MtGox founded by Mark Karpeles was based in Japan. Following the unexpected closure of the MtGox platform, Karpeles was indicted and also spent time in prison… This certainly helped to keep away shaky crypto companies that were looking for a safe haven….
Final word
There are necessarily more countries that can be described as crypto-friendly and still countries that are lenient towards cryptocurrencies. You can also consult our article on countries in Europe where capital gains in cryptocurrencies are not taxed.
There are also many countries whose populations ardently want bitcoin to be legalized like theEthiopia, For example. We will try to update this list as changes occur.
Please note: : No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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