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World’s Top 6 Crypto Countries In 2021

You might wonder which countries in the world are the most crypto-friendly? The crypto realm is both thrilling and dynamic. It allows for a new type of individual empowerment that is independent of central authority supervision or oversight.

However, depending on their country’s attitude on digital assets, anyone involved in the crypto realm is subject to varying rules. Cryptocurrency use is outlawed in certain nations, while it is a thriving industry that the government has embraced in others.

This article lists 6 nations where Bitcoin and other cryptocurrencies are accepted and have minimal governmental control. Continue to read to know more!

1. Portugal

Source: schengenvisainfo.com

We can’t discuss crypto-friendly countries without mentioning Portugal. This European country is one of the most desired places to live globally, and it has established a Bitcoin-friendly climate. Portugal’s crypto-enthusiasm stems from the country’s lengthy history of economic insecurity.

Portugal suffered from hyperinflation in the early 1990s, which nearly bankrupted the country and left it in ruins. Today, Bitcoin has provided the Portuguese people a way to break free from their insecure monetary system and live without worry or remorse for the future.

Even the Portuguese Public Ministry’s Financial Crimes Section — a unit tasked with combating money laundering and terrorism – has been outspoken in its support for Bitcoin-related technologies from its inception. They’ve even integrated blockchain technology into public services like digital identity and online voting.

A lot of people want to begin their cryptocurrency trading journey worldwide. Visit this go URL to start trading in cryptocurrency. 

2. Japan

Source: commonwealthfund.org

Japan is regarded for having some of the world’s most progressive cryptocurrency laws. As a result, Japan accounts for roughly 10% of all global crypto exchange traffic.

In 2017, the country recognized bitcoin assets as legal tender and created clear tax standards for investors. It was no easy task, as national tax authorities in many locations have been hesitant to give thorough guidelines on virtual assets, causing considerable concern among individuals and enterprises.

The Japanese cryptocurrency business has also been allowed the freedom to self-govern in a compliant and flexible manner. The Japanese Virtual Currency Exchange Association (JVCEA) comprises more than twenty organizations that have the collective capacity to pass and enforce cryptocurrency exchange legislation and standards in Japan. 

3. Germany 

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Cryptocurrency is not recognized as digital money or commodity in Germany. However, bitcoin and other cryptocurrencies are classified as “Private Money” under German law. As a result, if you sell or purchase them, the transaction will be exempted from VAT.

Moreover, proceeds from cryptocurrency are also not subject to long-term capital gains tax, which means that if you hold them for more than a year before selling them, you will not be taxed on the earnings from the investment, regardless of the amount.

Even if a Bitcoin is sold within a year, capital gains tax will only be paid if the value exceeds 600 euros. However, keep in mind that the preceding laws apply only to individual investors who are German residents.

The acquisition and sale of cryptocurrency, like any other commodity, is subject to corporate income tax for businesses engaging in crypto trading.

As a result, for working nomads and remote employees with a home base in Germany, investing in cryptocurrencies may be taxed more favorably than in other nations. However, if your German business accepts Bitcoin as payment, you will be subject to corporate income tax.

4. Singapore

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Singapore is known as an “Investment Haven” since it has no capital gains taxes. As a result, anyone (person or company) who possesses bitcoin for investment reasons is exempt from paying capital gains tax, just like everyone else who owns an intangible property.

However, profits from enterprises that indulge in trading cryptocurrencies as their primary operation will be taxed as ordinary income. Furthermore, revenues earned by firms that accept cryptocurrency as a means of payment for products and services sold will be subject to regular income taxation.

Singapore’s tax residence is established by the location of a company’s operations, making it an attractive country for location-independent firms.

It’s even more appealing to register your corporation in Singapore because of the favorable crypto tax rules.

5. Malta

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Malta has earned the moniker of “Blockchain Island” for being the first crypto-friendly tax jurisdiction to provide a comprehensive legal framework for “Distributed Ledger Technology.”

Under this legislation, cryptocurrencies are classified as a “unit of account, medium of exchange, or store of value” under this legislation, making it the country with the most acceptance of cryptocurrencies as a means of transaction.

There are no long-term capital gains taxes on cryptocurrency investments in Malta, and there is no VAT on the selling and purchase of cryptocurrency. As a result, bitcoin investment will be tax-free, comparable to Germany.

However, if you engage in day-to-day crypto trading, you will be subject to taxes, just as you would if you were day trading stocks. In this situation, a 35 percent rate of business income tax will be levied.

6. Switzerland

Source: remax.eu

Switzerland has earned the moniker of “Crypto Valley” for its efforts to promote the use and development of blockchain technology. The headquarters of different cryptocurrencies, such as Ethereum and Libra, is located in Crypto Valley, making it much more suitable for crypto mining and trading.

Cryptocurrency mining is classified as self-employment and is liable to business income tax. If you trade or hold cryptocurrency as an investment in your account and qualify as an individual trader, you will not be liable to capital gains tax.

Buying and selling through authorized professional traders are considered business income and are taxed accordingly. Nomads with remote jobs should keep in mind that cryptocurrency wages must be reported as salary income.

Conclusion

To summarize, there are many Bitcoin-friendly countries throughout the world where you can invest your money if you want to use this financial technology – but not all of them will be ideal for every person or business.

Because each country has various rules on trading crypto assets, altering how it interacts with fiat currencies like the USD, EUR, and GBP, it is critical to undertake a comprehensive study before selecting how best to invest in cryptocurrencies.

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