Top 7 Crypto Friendly Countries In The World

In recent years, as deteriorating economic conditions have set in, various governments worldwide have tightened regulations around cryptocurrencies. For example, in 2018, China effectively banned cryptocurrency exchanges. By February 2022, the People’s Bank of China had cracked down on P2P online lending platforms, leaving cryptocurrency investors in China with the option of either selling all their assets or finding somewhere else to live.

Similar patterns of government regulation have taken place in Ecuador, Bangladesh, and Iceland. Egypt has gone so far as to deem cryptocurrencies illegal. In recent months, the U.S. Securities and Exchange Commission has spoken publicly about the need for more consumer protection in the crypto market. Similar statements have been made by government institutions as far afield as Australia and Europe.

All the discussion of regulation can give the impression that the days are numbered for crypto investors. However, thankfully, there are still many countries that are friendly to cryptocurrencies. Let’s take a look at seven of the best countries in the world for crypto investors.

El Tunco Beach, El Salvador

El Salvador

When you think of crypto-friendly countries, El Salvador is the first that comes to mind. In 2021, President Nuyib Bukele ushered in Bitcoin as a legal tender committed to integrating the cryptocurrency successfully with El Salvador’s economy. The El Salvador government implemented this by issuing all its citizens a $30 USD digital wallet and rolling out 200 Bitcoin ATMs across the country. Despite recent economic challenges, El Salvador has stayed firm to its commitment, purchasing additional Bitcoin and working towards creating a crypto casino, further infrastructure and a Bitcoin-focused city to inspire international commerce. With no property, income or capital gains taxes and a president enthusiastically encouraging crypto-tourism, it’s evident why El Salvador features at the top of our list of crypto-friendly countries.

Related content: How You Can Apply For Residency In El Salvador

Merlion Park, Singapore

Singapore

Singapore has quickly become a hub for cryptocurrency, with recent regulations making it a favourable destination for Bitcoin trading and investment. In 2014, the country's government launched an initiative called Project Ubin, which looked into the potential use of blockchain technology in the financial sector. This active stance on digital currencies has attracted the attention of global crypto companies, with several choosing to set up offices in Singapore. Although the Monetary Authority of Singapore has put more regulations in place than El Salvador, they still feature many of the same perks: no property, income or capital gains taxes. With its forward-thinking approach and long-term investment in blockchain technology, Singapore is positioned to be a significant player in the world of Bitcoin and other digital currencies. It's no surprise that more and more individuals and businesses are flocking to this tech-friendly nation to get involved in the burgeoning cryptocurrency market.

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Valleta, Malta

Malta

In addition to being a beautiful Mediterranean locale, Malta is quickly becoming a hub for cryptocurrency enthusiasts. In 2018, the country passed three bills to regulate the cryptocurrency industry and establish Malta as a blockchain-friendly jurisdiction. The government has also launched its own program to train professionals in blockchain technology and attract major players in the global virtual currency market, such as Binance, to set up offices in Malta. Some have dubbed Malta "the Blockchain Island," and its prime minister has expressed confidence in the potential for virtual currencies and blockchain technology to contribute to economic growth. With its forward-thinking regulations, Malta is continuing to cement its position as a leader in the rapidly evolving world of cryptocurrency.

Related Content: Malta Residency Program

Erakor Lagoon, Vanuatu

Vanuatu

We turn our attention to another beautiful island nation: Vanuatu. Vanuatu has yet to establish any formal regulations regarding cryptocurrency. However, it is possible to obtain five years of citizenship for individuals who invest over $200,000 USD worth of Bitcoin into the country's economy. In addition to offering a low-tax environment and easy incorporation procedures for Bitcoin-based businesses, Vanuatu also boasts stunning natural beauty, making it an attractive destination for digital nomads and crypto enthusiasts alike. Vanuatu’s connections with the cryptocurrency community are also apparent in the Satoshi Island project. Taking shape on Lataro Island, the Satoshi Island project sees a group of crypto entrepreneurs looking to create a crypto-based charter city, allowing enthusiasts to shop, buy property and work locally in crypto. Offering a total of 21,000 local NFT-based citizenships with 80,000 offers already in place, Vanuatu may play a central role in the future of crypto.

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Lisbon, Portugal

Portugal

With a history of hyperinflation, Portugal has been forthright in its acceptance of cryptocurrency, even developing “digital free trade zones” to encourage participation. Not only is it one of the few countries with no capital gains tax on cryptocurrency investments, but Portugal also has a growing number of businesses accepting Bitcoin payments. One notable example is Casual Hotel, which offers guests the option to pay for their stay with Bitcoin. Beyond that, Portugal has also shown support for blockchain technology through initiatives such as a government-sponsored hackathon focused on finding innovative uses for blockchain. With its welcoming stance towards cryptocurrencies, Portugal is an example for other countries looking to embrace this rapidly evolving technology.

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Bern, Switzerland

Switzerland

Switzerland has long been known as a financial hub and a leader in innovation, and it's no surprise that they have embraced the potential of Bitcoin and other cryptocurrencies. The Swiss government has spearheaded efforts to regulate and protect the industry while supporting startups experimenting with blockchain technology. In fact, several major companies have chosen to set up their headquarters in “Crypto Valley,” an area in Switzerland dedicated to cryptocurrency development. The country is also home to numerous Bitcoin ATMs and accepts Bitcoin as payment for some public services. As more countries struggle to develop clear guidelines for this new technology, Switzerland is paving the way with their proactive approach towards blockchain development. We will likely continue to see Switzerland at the forefront of the cryptocurrency revolution.

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Tallinn, Estonia

Estonia

Estonia is ahead of the game when it comes to embracing digital currency. As of 2014, the country's government began to accept Bitcoins for various services, from filing taxes to registering companies. Although the fabled Estcoin has faded away, the country boasts one of the fastest internet speeds in the world. It has a highly developed e-government system, making Estonia an excellent option for crypto entrepreneurs. In addition, Estonia showcases great leniency regarding taxation and provides a very simple licensing fee for all those seeking to do business locally in cryptocurrency. Like all other options on this list, Estonia features no income tax. Companies can also reinvest the 20% corporate tax into their business with the local 20/80 net profit tax. As more countries begin to consider their stance on digital currencies like Bitcoin, Estonia shows how welcoming quality technological infrastructure and attractive tax rates can be for crypto enthusiasts.

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CONCLUSION

Cryptocurrencies are a topic of much disagreement, from the level of financial security they offer to determining which cryptos are worth investing in. However, as we have seen from the examples listed above, many countries are pushing to adopt crypto as a currency. For instance, the Central African Republic attempted to introduce the Sango coin as a citizenship by investment program and official currency, although it was soon shut down. Nevertheless, the fact remains that many countries are embracing the crypto uprising as a potential replacement for fiat currency.