World’s Top 10 Bitcoin & Blockchain Friendly Countries in 2018
DLT use is expanding and reaching various countries. However, different nations treat digital coins differently – there are different regulations, tax rules and attitude to the technology. Ten most welcoming crypto countries are presented below.
List of Cryptocurrency Friendly Countries
- United Kingdom
Blockchain and Bitcoin Friendly Countries
Switzerland is considered to be the leading blockchain country because of its positive treatment of the technology, tax-free environment and welcoming regulatory atmosphere.
One of the reasons the country has taken the first place is its virtual coins hub – “crypto valley” which is located in the city of Zug.
Apart from that, the country demonstrates numerous innovative applications of the technology. For instance, in July 2018, it tested the DLT-based voting system.
In 2018, the Gibraltar Financial Services Commission (GFSC) has formulated new regulations for crypto exchanges with the aim to make trading more secure and attract crypto businesses to the country.
More than that, Gibraltar Stock Exchange (GBX) was launched in summer 2018, with the support for BTC, ETH and US dollar.
Also, the taxation in the country is positive as there is no tax on capital gains or added value. Citizens should only pay low income tax.
Malta is considered to be the crypto island as the regulatory environment for ICOs and the technology in general is positive.
The country has the authority regulating the crypto sphere – MDIA. It passes the crypto bills and ensures that the DLT-based operations are legal and secure.
Also, Maltese companies apply the technology in innovative ways. For instance, startups are working in using DLT for transportation, education and plan to host the first ICCO in the world.
4. United Kingdom
According to the report by the Guardian, UK’ DLT-based companies have received over £ 500 million (around $637 million) of investments only during the past two years.
Then, in spring 2018, the country’s government has announced the crypto asset task force to monitor cryptocurrencies and fintech industry with the aim to manage risks around crypto assets.
More than that, the Bank of England plans the advancement of Proof-of-Concept (PoC) blockchain by 2020.
Denmark is considered to be DLT and crypto friendly as capital gains on BTC are tax exempted.
Then, the country is trying to create the ICO regulations to make token sales more secure. In April 2018, there was a discussion on the topic in Copenhagen Fintech Lab, in collaboration with the Financial Services Union Denmark.
In Germany, BTC is considered a legitimate currency. Also, in spring 2018, German securities bank, Wertpapierhandels Bank, has started to trade crypto coins.
Also, German solarisBank supports cryptocurrencies and offers a “blockchain company account,” which can be opened by DLT-startups.
German population treat digital coins positively as well: recent report by the German Consumer Centers of Hesse and Saxony shows that over a quarter of young Germans are willing to invest in crypto.
Estonia is quite a developed country regarding crypto. The country’s government is planning to integrate DLT into industries like healthcare, banking and even governance by giving its citizens an option to become “e-Residents.”
In 2016, Nasdaq and the Republic of Estonia have announced that Estonia's e-Residency platform will facilitate a DLT-based e-voting service.
Moreover, the country is considered the Baltic nation with the easiest opening of a crypto business. Taxation of transactions depend on their nature: there is no direct taxation if the token is sold or bought similar to security or investment.
8. The Netherlands
The country has the unregulated crypto investments environment according to the Netherlands’ Financial Supervision Act.
It also has the Dutch Blockchain Coalition – the organization including insurance giant ING, ANB AMRO bank, De Volksbank bank, Port of Rotterdam, Delft University of Technology and Tilburg University.
Divided into 20 groups, these organizations are implementing 35 separate DLT-based pilot projects, 25% of which are funded by the government.
The country is developing in terms of crypto coins and DLT, as in July 2018, the Government of Bermuda has announced that it intends to make amendments to the Banking Act. The aim is to have more services to local fintech and DLT-based startups.
Then, the country has no VAT, corporate, income, wealth or capital gains taxes. Bermuda only has a low payroll tax.
Moreover, in April 2018, Bermuda Monetary Authority (BMA) has released the Virtual Currency Business Act (VCBA). The aim of the document is to implement AML rules to create the friendly and secure atmosphere for DLT-based companies.
Sweden is the crypto welcoming country in terms of supporting ICOs. Sweden’s Financial Supervisory Authority (FSA) has made a warning about the risks of conducting and participating in ICOs with the aim to make investments more secure.
More than that, the country is developing DLT apart from the financial sphere as well. For instance, in June 2018, Sweden's land registry authority and a group of participating banks have successfully completed the third phase of the DLT-based project.
Blockchain and crypto coins will be discussed by DLT experts at the Blockchain & Bitcoin Conference Philippines.