Over the last few years, the crypto industry has taken global finances by storm. It is worth noting that Bitcoin (BTC) made its debut only 14 years ago. In just over a decade the asset class has managed to get the attention of almost all major economies.
While most countries are still trying to wrap their heads around how to regulate the crypto industry, many nations have opened their arms to embrace the sector.
With that said, let us take a look at some of the…
Most crypto-friendly countries
Portugal: Portugal is one of the most popular crypto destinations in the world. Individual profits from the purchase or selling of cryptocurrencies are not subject to tax in Portugal. Furthermore, there is no tax levied when exchanging one cryptocurrency for another.
Moreover, there is also a growing community of cryptocurrency lovers in the nation. The Block (Lisbon) and The Blockchain Center (Porto) are two examples of the numerous cryptocurrency and blockchain incubators in the country.
Dubai: In the past couple of months, to a year, the Emirate of Dubai has proven its love for digital assets. Already a global financial hub, Dubai of late has become the cryptocurrency hub of the world. The crypto and business-friendly laws of the region have attracted numerous firms to set up shops in the area.
Dubai’s VARA (Virtual Asset Regulatory Authority) has granted a license to a number of businesses since Sheikh Mohammed bin Rashid Al Maktoum, the prime minister and ruler of the United Arab Emirates, announced the creation of the crypto rules and related laws in March.
El Salvador: El Salvador was the first country to make Bitcoin (BTC) a legal tender. Fans and users of the original cryptocurrency can live their day-to-day lives using just BTC. Now, with the fall in BTC prices, El Salvador’s reserves have also taken a hit. The value of Bitcoin has fallen by about 70% since its all-time high in November of last year. Nonetheless, the country took a bold step in making cryptocurrency a legally accepted form of exchange.
Singapore: Singapore is another major financial hub with crypto-friendly laws. Cryptocurrencies are not subject to capital gains tax. Taxes do not apply to individuals or corporations with crypto funds. However, a business must pay income tax, if it accepts payments in cryptocurrencies or engages in cryptocurrency trading. Numerous cryptocurrency companies, like the Kyber Network, Qtum, Zilliqa, Crypto.com, etc., are also based in the nation.
Although the aforementioned countries are making headway into the cryptocurrency realm, there are other countries that are close behind. Several others are looking at the steps taken by these countries to formulate their own laws around crypto.
At press time, the global crypto market cap stood at $1.05 trillion, down by 0.6% in the last 24 hours.