Digital money is becoming more and more popular. Which country has the best conditions for using crypto? Let’s have a look at the countries that have legalized cryptocurrencies and the conditions for using crypto in such countries.
Estonia
Estonia is one of the leading countries successfully using crypto for economic development. One of the key initiatives in Estonia is e-Residency, which allows foreign citizens to access Estonian e-services and business opportunities. The country is also actively developing digital identity, which ensures the security and convenience of using crypto.
Switzerland
Switzerland is known for its status as a “crypto valley” due to its transparent and favorable regulatory environment for cryptocurrencies and blockchain technologies. The country offers tax preferences for crypto companies and provides access to financial services for innovative startups. This attracts many crypto firms and promotes the development of the digital economy.
Japan
Japan was one of the first countries to adopt crypto regulation. This has created a favorable environment for the industry and attracted many crypto companies and investors. Japan has also widely adopted crypto in everyday life, allowing citizens to use crypto to pay for goods and services. This is boosting the economy and encouraging innovation in the country.
Singapore
Singapore is renowned as a fintech hotspot. It has successfully used crypto for economic development. The country is actively developing fintech hubs and supporting crypto startups. Favorable regulations and investments in technological infrastructure allow companies to use crypto to finance and expand their business projects.
Belarus
Belarus legalized crypto in late 2017. Crypto businesses receive an exemption from taxation which is guaranteed until 2049, making the use of digital money even more attractive. Citizens actively use crypto, and transactions do not need to be declared. An online crypto exchange was launched in 2020.
Germany
Digital assets are recognized as private money. Commercial companies and banks can legally use crypto for payment, but the use of bitcoin is subject to VAT. At the same time, crypto transactions are not taxed. Crypto issuance, ownership, trading, and mining are all legally permitted. Crypto has been recognized as a financial instrument since 2017.
Spain
Digital money has been legal in Spain since 2014. In 2016, a law was passed requiring miners to register with the authorities and pay taxes.
Italy
According to Coinmap, over 15% of all stores worldwide that accept payments in crypto operate in Italy. Also, there are 39 cryptomats, and there is a project that is aimed at the development of a payment system in bitcoins.
Canada
Legally, digital bitcoins are not considered a means of payment, but they can be used to pay for goods and services. There are bitcoin ATMs in Canada, and income earned from crypto investment is subject to taxation.
Malta
In Malta, crypto is considered a legitimate market instrument. The Ministry of Finance actively cooperates with legislative bodies, and the country has passed a law regulating the circulation of electronic money. Crypto businesses are fully legalized.
Norway
Norway is the leader in the formal recognition of crypto: virtual money became legal in 2013. In 2017, VAT was abolished for all transactions involving the purchase and sale of cryptocurrencies.
El Salvador
In 2021, crypto was not only recognized but also declared to have equal footing with the dollar. Bitcoin is actively being introduced into the financial structure at the state level. The government also incentivizes citizens with the Chivo Wallet app: for downloading the app, users receive a thirty-dollar bonus.
United States
The United States is the country with the most ambiguous attitude to crypto. On the one hand, digital money has been recognized and taxed since 2017. On the other hand, there is a constant crackdown on crypto companies. Nevertheless, it is in the US that major crypto exchanges operate, including Poloniex, Bittrex, and others.
Philippines
The Philippines began to regulate the crypto market in 2017. All crypto firms are required to register and obtain a license for their activities. It is also necessary to submit annual reports to the regulatory authorities. In the Philippines, any type of digital currency has the status of a financial instrument, which can be used to make any type of payment.
Czech Republic
Cryptocurrency activities are legal, the country’s Central Bank believes that transactions with digital assets do not need to be licensed, and there is no need to pay additional taxes either. The only requirement of the country’s government is that owners of crypto exchanges, bitcoin ATMs, and other companies that exchange cryptocurrencies for fiat money must verify customers.
