The popularity of cryptocurrencies continues to grow, with cryptocurrencies becoming increasingly popular as a way of long-term investment and exchange. However, some countries have banned the trading of cryptocurrency in their jurisdiction, China being one of them. On the other hand, some countries promote and support the trading of cryptocurrencies.
As a trader, you need to be aware of these countries and can use their laws for the benefit of your crypto activities or businesses. So, the countries that favour cryptocurrencies are as follows and would you consider bitcoin as an asset ? Find out more.
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#1. Switzerland
Switzerland is one of the only countries that supports cryptocurrency. You might be amazed by the fact that there is a city in Switzerland named Zug which is also known as “Crypto Valley”, as it is a crowded hub of creative blockchain ventures, business firms.
Also, it does not impose any taxes on crypto investors, and with this, Switzerland became the first country to accept bitcoin as a medium of exchange in the year 2016.
#2. Germany
Cryptocurrencies are considered private money in Germany. Transactions made in cryptocurrencies are also excluded from taxes such as value-added tax and capital gains tax.
Although this is just applicable for resident investors, business firms are still applicable for paying tax on crypto gains as corporate tax.
#3. Cyprus
Cyprus is located on a middle eastern island. Cyprus hasn’t formed any policies or regulations regarding cryptocurrencies but it promotes the use of cryptocurrencies from the setting up of blockchains. Not only corporations and authorities but the people of Cyprus also invest in cryptocurrencies.
#4. Malta
Malta is also popularly known as a “blockchain island”. Because of the immense support by its government.
Also, the Prime Minister of Malta has addressed cryptocurrency as the “unavoidable future of money”. Because of its supportive nature, Binance (one of the biggest crypto exchanges) has set up its headquarters in Malta.
#5. Singapore
Singapore is another favourite place for crypto investors as the country charges no capital gains taxes. but this is only applicable for individual investors, business firms are still compelled to pay tax as normal tax rules for their gains on crypto.
#6. Belarus
Belarus passed an act in 2018 to boost the digital economy and technological advancement. Under this act, all the cryptocurrencies' gains and incomes were exempted from all taxes for five years (until 2023). Because of its liberal policy regarding transactions of crypto, Belarus ranked third in eastern Europe for crypto trading.
#7. Portugal
There are no specific laws and rules regarding cryptocurrencies in Portugal. Hence, no one is restricted to purchasing, selling or holding cryptocurrencies.
Also in 2016, the finance ministry of Portugal stated retail trade of cryptocurrencies as non-taxable.
#8. Bermuda
Bermuda is considered a tax free country and does not charge any corporate capital gains or any other tax tax-exempt role tax which is around 10%. Although there’s no tax charged on the holding, selling or purchasing of cryptocurrencies. In 2008 Bermuda passed an act named the digital assets business act (DABA) for monitoring crypto activities.
#9. El. Salvador
President El. Salvador has recently started accepting cryptocurrency as legal currency now that legislation has been passed which is the first country in the world to do so.
Also, you can judge the immense support given by the government to crypto by the fact that governments reward $30 bitcoin to every citizen on their installation of the governments crypto official app.
Conclusion
The above given is the list of countries that favour the use of cryptocurrencies. Some countries favoured cryptocurrencies bypassing some laws while others did not restrict crypto traders and some welcomed the use of cryptocurrencies with big hugs.