According to a recent study, cryptocurrencies are creating more and more billionaires and millionaires annually. Their knack for enriching and their several beneficial use cases are making them increasingly relevant all over the world.
However, while governments in several countries are developing friendly laws and policies to encourage the mass use of cryptos, others, such as those in China, Saudi Arabia, Egypt, and Ghana, are less optimistic.
This post examines eight of the most crypto friendly countries in the world in 2024 and the various ways they’ve been helping to stimulate blockchain and crypto adoption.
Determining The Most Crypto Friendly Countries
While there are no globally standardized criteria for ascribing crypto-friendliness to any country, certain indicators or parameters clearly indicate this. Below are some of the most notable.
- Clear and favorable regulatory framework: Well-defined and favorable sets of laws and regulations regarding cryptocurrencies and blockchain technology are a huge sign of crypto-friendliness. This is because clear and favorable rules help both businesses and private individuals operate legally and securely. Particularly crucial is providing clarity around licensing, compliance, and taxation.
- Tax incentives: Favorable tax treatment for cryptocurrency transactions, such as exemptions on capital gains for long-term holders or low taxation on crypto-related activities, is another sign of being crypto-friendly. Such incentives can stimulate both local and foreign investments while encouraging usage.
- Supportive government initiatives: A government can be seen as crypto-friendly if it supports initiatives that promote innovation in blockchain, cryptos, and fintech as a whole. Such initiatives may include public sector adoption of blockchain technology, grants, and funding programs, among others.
- Robust financial infrastructure: Providing access to banking services and other financial institutions that are open to working with cryptocurrency companies helps make for a friendly environment for operational success. This includes areas such as custody solutions, payment processing, ATM services, insurance, and cross-border collaborations.
- Vibrant startup ecosystem: A crypto-friendly country should be characterized by a thriving community of blockchain startups, tech incubators, and accelerators. All these can play important roles when it comes to supporting innovation and collaboration and driving growth in the cryptocurrency industry.
- Official awareness campaigns and public acceptance: High levels of public enlightenment by a country’s authorities is yet another sign of being crypto-friendly. Such educational or awareness measures can facilitate a greater understanding and acceptance of cryptocurrencies and contribute to their mainstream adoption and use.
- Consumer protectionism: A country with strong consumer protection laws will tend to earn more trust from those wishing to invest in its cryptocurrency market than otherwise.
- Technological infrastructure: Crypto-friendliness also has to do with the state of a country’s technological and digital infrastructure, including internet accessibility and cybersecurity measures. The more advanced and efficient they are, the more conducive their environment will be for both domestic and foreign blockchain operators.
- Ease of doing business: Factors such as straightforward business registration processes, low regulatory burdens, economic stability, strong internal security, and other supportive measures for entrepreneurs can attract crypto investments.
- International cooperation: Membership of and engagement with international organizations and adherence to global standards on cryptocurrencies can enhance a country’s reputation and legitimacy in the global crypto market. Another thing to look out for here is a country’s receptiveness towards playing host to international blockchain and crypto events such as conferences, seminars, and workshops.
8 Best Crypto Countries In 2024
Blockchain technologies and cryptocurrencies have continued to gain traction all over the world, a trend that seems likely to continue well into the future.
While some countries are waking up to the inevitability of cryptos penetrating their financial systems, some others have embraced this reality already. Here are eight of the most crypto-friendly countries in the world in 2024:
El Salvador
- 2023 Population: 6,364,943
- 2023 GDP (current US$): 34,015,620 billion
- 2023 GDP per capita (current US$): 5,344.2
- Official language: Spanish
El Salvador is a Central American country that has evolved a variety of crypto-friendly policies. In 2021, it became the first nation in the world to formally adopt Bitcoin as a legal tender. The country’s move towards Bitcoin legalization started on June 5, 2021, when its president, Nayib Bukele, announced a bill intending to adopt Bitcoin as legal tender in El Salvador.
Four days later, the country’s Legislative Assembly voted to adopt the Bitcoin Law, which would formally legalize BTC as legal tender in El Salvador. The law was enacted after 62 of the 84 assembly members voted in its favor.
The Bitcoin law came into effect on September 7, 2021. All businesses in the country were mandated to accept Bitcoin as a payment method. Additionally, the authorities declared that transactions in Bitcoin will not be subjected to capital gains tax.
At the same time, foreign BTC investors whose total investments in the country amounted to over ₿3 may be offered permanent residency status.
The global cryptocurrency community mostly welcomed the new law. Many thought it might help more countries and their central banks accept cryptocurrency. Supporters of the law took to social media platforms, such as Twitter and Instagram, to post videos showing people in El Salvador using Bitcoin to buy stuff at popular retailers like Starbucks and Pizza Hut.
In the same September, the government launched the “Chivo Wallet” app and offered incentives meant to encourage people to download and utilize it.
Among the incentives were $30 free Bitcoin for every download and huge discounts for those who buy gasoline with Bitcoin.
Furthermore, Chivo transactions, including converting BTC to USD and withdrawing funds at Chivo ATMs would attract no fees. In a 2023 interview, President Bukele cited the Bitcoin law as the reason for a 95% increase in tourism in his country.
BTC Republic had earlier reported that the IMF has been pressuring El Salvador about its Bitcoin policies.
Canada
- 2023 Population: 40,097,761
- 2023 GDP: 2,140,085.57 trillion
- 2023 GDP per capita (current US$): 53,371.7
- Official language: English and French
Canada has established a clear regulatory environment for cryptocurrencies, with guidelines set by the Canadian Securities Administrators (CSA) and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
Canada has been credited as the first country to establish laws addressing cryptocurrency by amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCA).
It is also the first to approve cryptocurrency exchange-traded funds [ETFs] and Vancouver is home to the world’s first crypto ATM.
Cryptocurrency exchanges in Canada are required to register with FINTRAC and comply with anti-money laundering (AML) regulations, ensuring a safer market for consumers.
Canadians are not subjected to taxation just for buying or holding cryptos. However, the Canadian Revenue Agency (CRA) views cryptocurrency as a type of commodity, which means it is subject to both capital gains tax and income tax.
50% of crypto capital gains and 100% of crypto income are taxable. The country allows for certain tax deductions related to crypto expenses, which can benefit investors and businesses.
Various businesses across Canada accept Bitcoin and other cryptocurrencies for payments, including retail stores and online services, making digital currencies more accessible to consumers.
Canada boasts one of the highest numbers of BTC ATMs in the world, and several Canadian banks allow crypto transactions, making life easier for investors and businesses.
For example, the Toronto-Dominion Bank (TD) and other major banks have begun offering services related to cryptocurrencies, such as custody solutions for institutional clients. This growing acceptance among banks and investment firms enhances the legitimacy of digital assets.
Cities like Toronto and Vancouver have vibrant blockchain and cryptocurrency communities, fostering innovation and collaboration among startups and tech enthusiasts.
Toronto, for example, is home to numerous blockchain events and conferences, such as the Canadian Blockchain Summit, which brings together industry leaders and innovators.
Malta
- 2023 Population: 553,214
- 2023 GDP (current US$): 20,956,999.45 billion
- 2023 GDP per capita (current US$): 37,882.3
- Official languages: Maltese and English
Malta is an EU member state widely known as the blockchain island, thanks to its crypto-friendly policies. In 2018 alone, the country came up with three important laws aimed at stimulating cryptocurrency adoption.
These regulations include the Malta Digital Innovation Authority Act (MDIA), the Innovative Technology Arrangements and Services Act (ITAS), and the Virtual Financial Assets Act (VFAA). It also has KYC/AML regulations, including the Prevention of Money Laundering Act (PMLA).
The above laws and others have been articulated to offer some clarity in terms of guidelines for organizations wishing to operate in the country’s crypto space.
Malta also has favorable tax policies for companies in the blockchain sector. For example, tax rates for some income types are significantly discounted, making the island nation an attractive destination for both startups and established businesses.
Also, if you are a crypto investor in Malta, then you do not have to pay any capital gains tax for any profits derived from your long-term investments.
Spending up to 183 days of a year in Malta qualifies you as a tax resident and thus makes you eligible to enjoy all the country’s crypto-friendly tax policies.
Malta hosts several blockchain-oriented events, including conferences and other meetups. It also promotes education and awareness about blockchain technology in order to help build a knowledgeable labor force and consumer base.
Notable regulatory agencies in the country include the Malta Financial Services Authority (MFSA) and the Malta Digital Innovation Authority (MDIA).
Switzerland
- 2023 Population: 8,849,852
- 2023 GDP (current US$): 884,940,402.23 billion
- 2023 GDP per capita (current US$): 99,994.9
- Official languages: German, French, Italian, and Romansh
Switzerland is considered a crypto-friendly country for a variety of reasons. For instance, it has been a top financial center for years. It also boasts a solid legal system renowned for its stability and protective mechanisms for intellectual property rights.
Such conditions can be beneficial for aspirating investors, including blockchain operators.
The country also has a clear regulatory framework aimed at sanitizing blockchain and cryptocurrency operations in its territory. Most of these regulations are under the purview of The Swiss Financial Market Supervisory Authority (FINMA).
One such regulation is The Swiss Anti-Money Laundering Act (AMLA) which became law in October 1997 and was updated in 2016.
The AMLA is complemented by the FINMA Anti-Money Laundering Ordinance (AMLO) which was revised in November 2022. This regulatory clarity is helping boost financial institution participation in the country.
An example can be found in this BTC Republic post covering a crypto offering by Switzerland’s fourth-largest bank, Zürcher Kantonalbank.
Crypto awareness is high in Switzerland. The country even has a “Crypto Valley” in one of its towns known as Zug. The valley hosts several firms and foundations that are attracted to Zug because of tax benefits. There’s also a Crypto Valley Conference whose seventh edition is slated for June 2025.
The conference is organized by the Crypto Valley Association and Lucerne University of Applied Sciences and Arts.
Private investors in Switzerland are free of capital gains tax obligations. But if you are into professional mining or crypto trading, then you’ll be faced with income and wealth taxes, respectively. Cryptos are regarded as assets and hence wealth tax applies to them.
Germany
- 2023 Population: 84,482,267
- 2023 GDP (current US$): 4,456,081.02 trillion
- 2023 GDP per capita (current US$): 52,745.8
- Official language: German
There is a growing awareness of cryptocurrencies among the general public in Germany. Many German residents are becoming more familiar with digital currencies, leading to increased usage and investment. Cities like Berlin and Frankfurt are emerging as key hubs for blockchain and cryptocurrency startups.
Berlin hosts numerous blockchain events and companies, including Finoa and Bitwala which offer a variety of crypto services. This vibrant ecosystem helps promote innovation and collaboration among businesses, developers, and investors.
Over the years, Germany has managed to articulate and establish a clear regulatory framework for cryptocurrencies. The establishment of the Blockchain Strategy by the German government in 2019 sought to promote blockchain technology and its applications in order to enhance the country’s position in the crypto space.
Notably, the German government had, at one time, held a stash of over 49,000 Bitcoins. More on that story here.
The Federal Financial Supervisory Authority (BaFin) recognizes cryptocurrencies as units of account and financial instruments, subjecting them to financial regulations.
This provides legal direction for businesses operating in the space. With clear crypto laws, German financial institutions are increasingly exploring opportunities offered by cryptocurrency investments.
Several banks are now providing crypto-related services such as custody solutions and trading. Some good examples are the Landesbank Baden-Württemberg (Germany’s largest federal bank) and Deutsche Bank, which have since announced plans to offer crypto custody services. This indicates a shift in traditional banking attitudes toward digital assets.
German tax authorities regard cryptos as an asset. Consequently, the gain arising from selling cryptos is taxable as “other income” and is subject to the individual taxpayer’s progressive income tax rate.
Additionally, the sale of cryptos is tax-exempt for private investors who have held their crypto assets for over a year.
Otherwise, German law allows for a tax exemption limit of only €600 per year. Should the overall gain from crypto assets exceed the annual exemption limit of €600, then all gains become taxable.
Singapore
- Population: 5,917,648 (2023)
- 2023 GDP (current US$): 501,427,500.08 billion
- 2023 GDP per capita (current US$): 84,734.3
- Official languages: English, Mandarin, Malay, and Tamil
Singapore’s reputation as a global financial hub makes it a choice destination for companies seeking to take advantage of cryptocurrencies and blockchain solutions. The Singaporean government actively supports innovation in fintech and blockchain. Initiatives like the Financial Sector Technology and Innovation (FSTI) scheme provide funding and support for fintech startups.
Traditional banks like DBS have launched cryptocurrency trading services that integrate digital assets into their offerings.
The Monetary Authority of Singapore (MAS) has established a comprehensive regulatory framework for cryptocurrencies and blockchain technologies. The MAS has launched projects like Project Ubin, a collaborative initiative to explore the use of blockchain for interbank payments, demonstrating the government’s commitment to advancing blockchain technology.
The Payment Services Act (PSA) regulates cryptocurrency exchanges and digital payment tokens, helping to provide clarity for businesses. Top companies like Binance and Coinbase have successfully been operating in Singapore in adherence to MAS compliance regulations.
Singapore has a favorable tax regime for cryptocurrencies. This tax framework encourages both local and international investors to engage in cryptocurrency trading and investment without the burden of additional taxes.
From Jan 2020, some crypto transactions were exempted from the country’s goods and services tax (GST). Examples include the exchange of tokens for fiat currency or other tokens, the use of tokens as payment, and loans made with tokens.
Mining is not subject to GST, but a miner providing services that have commissions or transaction fees may be taxed.
The general public and businesses in Singapore exhibit a high level of awareness and acceptance of cryptos, which further supports their use. Numerous conferences, meetups, and educational initiatives, such as TOKEN2049, focus on blockchain and cryptocurrencies, promoting understanding and engagement.
Estonia
- 2023 Population: 1,366,188
- 2023 GDP (current US$): 40,744,848.83 billion
- 2023 GDP per capita (current US$): 29,823.7
- Official language: Estonian
Like the other states mentioned above, Baltic state Estonia has implemented a clear regulatory framework for cryptocurrencies and blockchain technologies. Its Financial Intelligence Unit (FIU) oversees the licensing of cryptocurrency exchanges and wallet providers, ensuring compliance with regulations.
Among such regulations are the 2008 Anti-Money Laundering and Terrorist Financing Prevention Act, which was amended to define virtual assets as cryptos. There’s also the Financial Supervision Authority (FSA), which has a supervisory role in the finance industry.
The Estonian public is generally open to cryptocurrencies, and there is growing interest in blockchain technology across various sectors.
Various educational initiatives and conferences focused on blockchain and crypto, such as the W3N 2024 Conference, promote awareness and understanding of decentralized technologies and digital assets.
Estonia offers an innovative e-Residency program that allows entrepreneurs from around the world to establish and manage businesses online. This program facilitates the creation of crypto-related startups without needing to be physically present in the country.
The country boasts a thriving startup ecosystem, which is why its capital, Tallinn, is often referred to as the “Silicon Valley of Europe.” This environment encourages innovation and collaboration among tech companies, including those in the crypto space.
Banks like LHV Bank have started offering accounts to crypto businesses, among other services, thus facilitating smoother operations for startups in the sector.
Cryptocurrencies are classified as assets and, therefore, liable to Estonia’s Income Tax Act. The income tax rate is 20% but will increase to 22% in 2025.
From 2025, the Financial Supervisory Authority will start issuing licenses. If you already have a license from the Financial Intelligence Unit, you’ll need to get a new or extra license from the Financial Supervisory Authority by 2026.
Slovenia
- Population: 2,120,937 (2023)
- 2023 GDP (current US$) 68,216,781.41 billion
- 2023 GDP per capita (current US$): 32,163.5
- Official language: Slovenian
In 2017, Slovenia’s government announced its intention to make the country the EUs top blockchain technology destination. The government had earlier in the same year launched an initiative known as The “Blockchain Think Tank” as part of the Slovenian Digital Coalition.
The think tank was meant to facilitate communication and collaboration between the government, blockchain developers, and other industry players. It was also saddled with helping in the creation of educational materials on Blockchain and the drafting of new blockchain regulations.
On July 25, 2024, Slovenia became the first EU country and one of the earliest in the world to issue a digital bond on distributed ledger technology (DLT). The Financial Administration of the Republic of Slovenia continues to provide guidance on the tax treatment of cryptocurrencies in order to help individuals and businesses understand their obligations.
Personal income tax is not levied on capital gains arising from the disposal of virtual currencies under the condition that the individual does not generate the income from a business activity. When a crypto token is used to pay for individual products and services, the transaction will be subject to VAT.
Many businesses in Slovenia are beginning to accept cryptocurrencies as a form of payment, increasing their usability in everyday transactions.
For example, several local restaurants and shops in Ljubljana accept Bitcoin and other cryptocurrencies, making it easier for both locals and tourists to use digital currencies. Another example is Bitcoin City, a shopping mall that accepts Bitcoin.
Slovenia is home to several blockchain startups and initiatives that promote the adoption of cryptocurrencies and blockchain technology. This includes companies like Eligma, which focuses on streamlining online shopping using blockchain technology.
Events like the upcoming NiceHashX Bitcoin Conference 2024 and others draw significant attention, bringing together industry leaders, developers, and investors. This vibrant ecosystem fosters collaboration and innovation in the crypto space.
Conclusion
The rising importance of cryptocurrencies and blockchain technology is evident all across the globe. However, some countries have not embraced them as the countries mentioned above.
Their fears seem to arise from the tendency to abuse cryptocurrencies, for example, through money laundering.
However, a lot of countries have decided that the benefits of crypto adoption are far greater than the risks, especially if sound regulatory mechanisms are evolved.
FAQs
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What criteria determine the best crypto-friendly countries?
Factors like regulatory clarity, tax policies, public acceptance, technological infrastructure, and support for blockchain innovation are crucial.
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Which country has no tax on crypto?
It may be hard to find countries whose tax laws don’t cover virtual currencies in one way or the other. However, tax havens such as the Cayman Islands tend to have comprehensive tax-free policies.
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What are the best countries for crypto?
El Salvador, Canada, Malta, Switzerland, Germany, Singapore, Estonia, Slovenia. There are also several others, including the United States, Portugal and Japan.
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Which countries have adopted Bitcoin as a legal tender?
El Salvador was the first country to adopt Bitcoin as a legal tender in September 2021. The Central African Republic also announced Bitcoin as a legal tender in 2022.
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What Are the least crypto-friendly countries?
Countries like China, Saudi Arabia, Argentina, Egypt, Taiwan, Iran, and several others have laws that cannot be considered friendly to cryptos. However, with the increasing adoption and use cases of cryptos and blockchain technology, things could change in these countries in the future.
