3 countries that embrace crypto

With the crypto markets now hitting $3 trillion in value, it’s clear that millions of people worldwide are interested in cryptocurrency, and countries around the world are starting to embrace crypto. There are still countless debates about how cryptocurrencies will be regulated, but some countries already embraced crypto years ago.

There are different ways for a country to be “pro crypto,” after all. Some countries might offer favorable tax frameworks for crypto investors, and other countries might even adopt Bitcoin as legal tender or to help the unbanked. In a world where some countries are cracking down on crypto mining or trading, here are three countries that embrace crypto wholeheartedly.

Malta: the blockchain island

If you look on any list of crypto-friendly countries, there’s a good chance that you will find Malta on the list as one of the top countries to embrace crypto. Malta’s own prime minister told the UN in 2018 that crypto was “the future of money,” in case there was ever any doubt about where the Malta government stands. The prime minister, Joseph Muscat, later stepped down because of his association with the Panama Papers. The Euro is the fiat currency for Malta.

However, the idea of Malta as a “blockchain island” lives on. The crypto economy has been so robust that $71 billion in crypto has passed through the island. This is largely because it was hailed as the first country to put forward a cryptocurrency regulation framework.

Why is Malta home to so many crypto millionaires? The answer is pretty simple: the country not only doesn’t tax crypto capital gains; the island also offers a Citizenship by Investment program. The Malta Financial Services Authority recently approved a crypto index fund for a stock market listing, as well.

Malta doesn’t apply capital gains tax to long-held crypto investments, but they do tax crypto trading profits at 35%. This may be the place to move for a long-term crypto investor rather than a daytrader. Through restructuring, this tax rate can be brought down to as little as 5%.

Switzerland: home to crypto valley

Switzerland has a long banking history, as it is home to banking giants such as UBS and international banking reputation was critical to embracing crypto, given the fact that the country already has so many tech-savvy regulators and expert bankers. In 2015, Switzerland made it clear that they wanted to attract crypto investors by exempting Bitcoin from VAT (value-added tax).

Switzerland is also home to Zug, considered the “crypto valley” of the world. Zug is also where the Ethereum Foundation is based, the nonprofit organization dedicated to promoting Ethereum adoption. The town is home to many blockchain-related startups, some of which are already worth over a billion dollars. And guess what? Your individual crypto profits or losses are exempt from tax reporting.

Thanks to the fact that there are crypto-friendly regulators, low taxes, and a collaborative startup ecosystem, some believe that Switzerland is the “blockchain capital of the world.” While the country may not replace the Swiss franc with Bitcoin anytime soon, it’s clear that the country will remain crypto-friendly for the near-term future.

Singapore: emerging crypto capital

If you’re worried about whether Singapore is crypto-friendly, consider this: two crypto billionaires have decided to make it their base. This includes Ethereum co-founder Vitalik Buterin and Binance founder Changpeng Zhao (“CZ”). Singapore first attracted many crypto enthusiasts and investors during the 2018 ICO boom.

Why are so many crypto startups flocking to the country? Well, one of the main reasons is the fact that Singapore is so business-friendly. Singapore is considered to be one of the easiest countries in the world to do business, and it also is known as a fintech hub of Asia. With China cryptocurrency crackdowns, many believe that Singapore will emerge as the “crypto capital” of Asia.

It’s legal to own and trade Bitcoin and other cryptocurrencies in Singapore, and crypto exchanges are licensed and regulated. There is no capital gains tax for cryptocurrency profits, and digital assets are even exempt from a 7% goods and services tax.

The Singapore dollar is the currency used, and its value hovers at around 75 cents of a U.S. dollar. Many Singaporean citizens are busy turning those Singapore dollars into crypto, as a staggering 67% of citizens own crypto. With these kinds of numbers, it’s obvious why Singapore makes the list.

Which countries will embrace crypto next?

Of course, it’s important to remember that circumstances change. There may be high-profile politicians who embrace crypto in a specific country. Still, it doesn’t mean that the country is necessarily the best place to live for a savvy crypto investor. Many countries have waffled back and forth about whether or not to crack down on the crypto sector, or offer new incentives to attract crypto investors and startups.

These countries still rely on their fiat currency, whether it’s the Swiss franc, Euro, or Singapore dollar. However, more countries may embrace crypto as it becomes adopted more, and after more countries begin to offer precise crypto regulation. Still, these three countries lead the list.