Cryptocurrencies are no longer just a trend but an integral part of the global economy. Blockchain technology which enables crypto coins to function as a decentralized payment method is capable of replacing the traditional capital markets system and replacing or at least co-existing with centralized banking and financial institutions.
While some countries refuse to acknowledge cryptocurrencies as an alternative to their current monetary system, other countries are embracing the challenge and making efforts to provide a crypto friendly environment and producing clear and transparent regulation.
In this article, we list the top 5 crypto-friendly countries:
The small European country has been embracing cryptocurrencies in many ways. Malta – also known as “the Blockchain Island” – offers a friendly environment for crypto business due to its competitive tax policy.
Though cryptocurrencies are not yet legalized in Malta, the Maltese government has taken a number of steps to stimulate the adoption of blockchain technology and cryptocurrencies. The government has accepted cryptocurrencies as a medium of exchange and offers attractive terms for crypto business.
Binance, the largest crypto exchange in the world, relocated to Malta in 2018.
Estonia is one of the most attractive locations for crypto businesses due to its regulatory framework. The small Baltic country is striving to be a cryptocurrency hub and a leader in blockchain technology and so far, the Estonian government has promoted a friendly legislation for cryptocurrency business.
Estonia is technologically advanced and after becoming the first country to offer e-residency, the Estonian government has also considering issuing its own national cryptocurrency, the estcoin.
Though cryptocurrencies are not yet legal tender in Estonia, the government has issued over 900 licenses to cryptocurrency businesses in 2018 and recognized cryptocurrencies as digital assets for tax purposes.
Japan is a leader when it comes to the acceptance and adoption of cryptocurrencies and blockchain technology. Japan was the first country to accept bitcoin as a legal tender and one of the first countries which accepted bitcoin as a form of payment in retail stores.
Japan is the world’s biggest market for Bitcoin and has a huge crypto community. Japan is also the home of 19 cryptocurrency exchanges, including the first-ever cryptocurrency exchange.
The small European country has a solid strategy to attract crypto investors and businesses and quickly becoming one of the main cryptocurrency hubs in the world. Liechtenstein has set up a regulatory framework for digital currency businesses and offers a low tax rate for crypto investors.
The Crown Prince of Liechtenstein, Hans-Adam II, is promoting Liechtenstein as a friendly crypto environment and so far it has paid off.
Liechtenstein is a member of the European Economic Area, but not the European Union which makes it more accessible for foreign companies to relocate their operation to the small country.
Singapore is one of the most innovative and technologically advanced countries in the world. It is also one of the most crypto friendly countries in the world.
Cryptocurrencies are not legal tender in Singapore but are seen as goods by the local authorities which means that any company dealing with cryptocurrency is required to pay a tax rate of 7%.
Cryptocurrency exchanges and trading are legal in Singapore although the soft approach of The Monetary Authority of Singapore (MAS) has led to a series of high profile hacks. Earlier this year, the Monetary Authority of Singapore introduced the first regulatory framework for cryptocurrency exchanges.