One of the greatest things about bitcoin and cryptocurrency is its flexibility and universal acceptability. Unlike other currencies, it has no geographical boundaries and can travel freely around the world and hold the exact same exchange value that is one thing that is adding to its fascination and making investors and traders alike.
It’s all okay when it comes to holding the currency in your bitcoin account but when we try to bring it into the real market and try to utilize it for business transactions things get a little complicated. The income tax, government regulations, authorization of transactions all come into play. And that is what limits the use of the currency.
While some countries follow a strict anti-bitcoin currency policy. There are others who have started to adopt this system of exchange and are opening their arms to welcome crypto transaction opportunities. So here are 10 Bitcoin and crypto-friendly countries.
Number 1 — Japan
Japan is a leading country in the crypto space. Japan was the first country in the world to approve Bitcoin as legal tender.
The nation was also the first to pass broad regulations to its 32-plus cryptocurrency exchanges aimed at improving their security. It even went a step ahead and made bitcoin transactions tax-free inviting others to join the league.
The country is on its way to becoming one of the most bitcoin-friendly nations as many of the new startups and businesses in Japan have already started to identify and accept cryptocurrency exchanges in their usual activities.
All the exchanges happening in this space are duly recognized by the government and even daily updates are posted on the same.
Number 2 — Singapore
This high-ranking country in terms of political stability is among the few jurisdictions that support the zero capital gains policy on cryptocurrency income.
The monetary authority of Singapore also allows some cryptocurrency companies to operate without a license within a grace period of six months.
Capital gains tax apparently does not apply to long-term investments into bitcoin. Indeed Singapore currently has no capital gains tax system in place.
So profits gained from long-term investments are not currently taxable, however, if cryptocurrency trades are deemed a revenue asset then taxes could be applied depending on the nature of the return.
There are currently 12 bitcoin ATMs in Singapore spread across the country in different locations. Especially malls making it easier for you to buy digital assets anonymously.
Number 3 — Slovenia
Slovenia is a Central European nation with a population of around 2 million. It has a crypto-friendly government and financial institutions which don’t restrict those engaged in Bitcoin transactions.
Bitcoin and other cryptocurrencies are classified as virtual currencies. This means Slovenia does not tax Bitcoin as either money or security but profits are taxed under income tax.
But individuals who acquire Bitcoin as part of their business or mining activities will pay income tax on it. The corporate tax rate on crypto business in Slovenia is not well defined but taxation should certainly be expected.
The country has a total of 20 cryptocurrency ATMs and 10 of those devices are located in its capital city of Lublanya.
Number 4 — Canada
Canada went one step ahead and recognized the validity of Bitcoin by forming and accepting an official law regulating cryptocurrencies.
The country is highly Bitcoin-friendly and the people living will vouch for the same. As it is an incredibly high number of 86 Bitcoin-accepting merchants who are working under the official law.
Now two of its important cities Toronto and Vancouver are on their way to become flourishing bitcoin hubs and hence the state of the country seems very promising for bitcoin users. But cryptocurrency is taxed in Canada as either capital gains or his income tax depending on whether your activity with cryptocurrency is considered to be a business or not.
There are over 900 bitcoin ATMs in Canada most of them are in Toronto, Montreal, and Vancouver.
Number 5 — United States
When it comes to bitcoin trading volume the USA has topped the list with the maximum number of traders dealing in Bitcoin. Since the beginning, The US has been a pioneer in the bitcoin trading world.
With a maximum number of Bitcoin ATMs and other silicon valley startups to promote the same.
It has built its power in this like other spaces and many countries of the world look up to The US for guidance in the virtual currency space. But keep in mind that all transactions with cryptocurrencies will be subject to personal income tax or capital gains tax.
There are many trading platforms and Bitcoin ATMs in the USA especially in cities like San Francisco, New York, and Florida.
Number 6 — South Korea
This small East Asian nation has its history of inclination towards the most sophisticated innovations and so it has shown in the virtual currency space.
The nation accounts for 10% of the entire world’s bitcoin trading volume and that’s pretty huge considering it’s not highly populated.
The country has created a friendly environment for Bitcoin startups and businesses to flourish and grow.
The country is planning to waive all taxes on cryptocurrency transactions and income for this year only. In other words no taxation of mining trading or other business activities involving crypto till the end of 2021. Bitcoin gifts and inheritances are also exempted from tax.
Number 7 — Denmark
Denmark has forever been the advocate of eliminating cash transactions and taking its citizens towards a digital payment economy and hence its inclination towards virtual currency like bitcoin does not come as a surprise.
Its citizens are dealing in Bitcoin in high volumes and the graph is constantly rising. To add to it there are various Bitcoin ATMs also which are functional 24/7 allowing you to transact in the same.
Buying, selling, and trading Bitcoin in Denmark is fairly easy due to a large number of Bitcoin exchanges that operate freely as part of this digitization trend.
Cryptocurrency businesses in Denmark and Fintech companies, in general, may explore the various opportunities.
Number 8 — Estonia
The small Baltic nation of Estonia not only has a history of jumping on the latest technological innovation but its tech-friendly government seems willing to implement innovations like blockchain technology for health care, banking services, and even governance by allowing its citizens to become e-residents.
This service also gives Estonian citizens and businesses digital authentication. While known as the birthplace of skype. It now hosts a number of bitcoin ATMs and startups such as Paxful ( a global peer-to-peer buying and selling service for bitcoins ) with one of the highest internet penetration rates in the world.
Estonia is well-positioned to be a place where a cryptocurrency user can certainly feel welcome.
Number 9 — Georgia
Georgia is an eastern European nation of close to 4 million people. The country is among one of the top cryptocurrency countries in the world. It does not have any legislative restrictions for crypto exchange and to date does not require any license for such activity.
Also, Georgia provides a high tax certainty and beneficial tax system for businesses involved in the crypto field. For purposes of attracting foreign investment to its IT industry, Georgia set up a free industrial zone near its capital Tbilisi.
The post-soviet Georgian economy is one of the quickest growing in eastern Europe. thanks to economic reforms and modernization the country is also ranked 14th in the world for ease of doing business and 13th for economic freedom.
Georgia has the second-highest bitcoin mining in the world after china according to the global cryptocurrency benchmarking study.
Number 10 — Netherlands
The Netherlands fame in the bitcoin world has also been reflected by the uptake of the dutch in purchasing cryptocurrencies.
In a survey in 2020, almost 1 million dutch people had invested in blockchain currencies. The country’s capital city Amsterdam is a host to the world’s most leading bitcoin and blockchain-based development startups including Bitfury and Bitpay that was a significant move and after that, there was no going back.
The country even has 74 merchants accepting bitcoin and several Bitcoin ATMs and is on its way to becoming a haven for cryptocurrency users.
Mainstream media mentions crypto on a regular basis but is mostly focused on price movements. The use of cryptocurrencies as payment as peer-to-peer electronic cash is not the most popular. With reliable financial institutions, cryptocurrencies have mostly become another asset to trade.