When it comes to the crypto universe, we live in the “every man (or country in this case) for themself” times. Some countries are taking their first steps into the future by opening their doors to cryptocurrencies, while others are going in a completely opposite direction.
Today, we are looking at the top five pro-crypto countries and their policies and regulations.
However, everything in the world of crypto fluctuates, so this list could be susceptible to changes - especially now when it’s trending to jump on the crypto bandwagon!
El Salvador
This country may be the most popular one when it comes to its pro-crypto regulations, eco-friendly crypto mining technique of bitcoin mining, and adoption in general.
Last September, El Salvador became the first country to make BTC legal tender and equal to the U.S dollar. Not everyone was happy with this decision - e.g. the IMF said that this can cause financial instability, but President Nayib Bukele hasn’t reversed the decision. Quite the opposite.
After this monumental moment, the country surprised us once again, when it announced that it will use Vulcano-generated energy to mine bitcoins. This could be the perfect response to one of the biggest issues when it comes to mining - power consumption, especially because the country has more than 20 active volcanoes.
The President of El Salvador said that their next goal is to build a Bitcoin city, and Salvadorians will use crypto to fund this project. Also, he added that the city will have everything - residential and commercial areas, bars and restaurants, museums…even an airport.
Lastly, President Bukele made news recently when he tweeted that El Salvador will offer “citizenship in exchange for investments” in the bitcoin fund.
Whether or not people think these actions were a good idea, one thing is sure - El Salvador never had a double GDP growth rate before last year.
Australia
As we all know, everything that could, moved online.
That also happened with payment methods - the use of cryptocurrency has skyrocketed, especially in Australia (around 55 million non-cash payments are made on a daily basis).
As a pro-crypto policy-maker, the country has announced it will create a licensing framework for crypto exchanges. Also, the government stated it is considering launching a retail central bank digital currency at the beginning of this year, so besides being interested in crypto, Australia is also interested in issuing its CBDC. The only thing left to do is to wait and see how this will play out.
Portugal
named as one of the most crypto-friendly countries.
Portugal made cryptocurrency tax-free back in 2016 (that doesn’t apply to professional activities), making this type of currency the same as any other currency. Even though the salaries paid in crypto are taxed, the fact that in Portugal you can pay wages in crypto is still fascinating.
Portugal went one step further in 2020 when it established a “Digital Transitional Action Plan”, whose sole purpose is to promote digitization - creating conditions suitable for business innovation and digital transformation. Within it, there is also a plan called “Technological Free Zones” with a mission to enable experiments on the blockchain.
All of these advanced regulations are making Portugal one of the most prominent pro-crypto countries over and over again.
Slovenia
The list of pro-crypto countries wouldn’t be complete without mentioning this tiny yet progressive European country, slowly making an imprint in the crypto community with its advanced regulations.
According to Cryptonomist, “Slovenia is the country with the highest market capitalization per capita of blockchain projects, with an average of 14.5 blockchain companies per million inhabitants.” Besides this, Slovenia also has Bitcoin ATMs (BTMs for short) around the country.
The Financial Administration of the Republic of Slovenia (also known as FURS) has a mission to regulate crypto by changing the way it gets taxed - a 10% tax rate for when crypto is spent on goods or exchanged for cash. These changes should make tax reporting much easier and faster. Also, in Slovenia, cryptocurrency mining is not considered a value-added tax (VAT) transaction.
One thing is certain, Slovenia’s crypto community is thriving and we are excited to watch it blossom into something innovative.
Singapore
For the last pro-crypto country on our list, we are moving to another continent, all the way to Asia. Singapore is already known for being one of the most developed economies in the world, so no wonder it is also a very fertile ground for investments. People also call it the fintech hub of the Southeast Asia region.
When it comes to crypto regulation, the central bank of Singapore is trying to achieve balance - closely monitoring the crypto ecosystem to avoid possible money laundering on one side and encouraging innovation on the other.
That is why Singapore chose to not have capital gains tax - cryptocurrency funds (individuals and companies) are not subject to taxation. On the other hand, companies that accept crypto payments and are based in Singapore are liable to income tax.
Now it’s left for the world to see what benefits will these kinds of regulations bring to Singapore.
Honorable Mention: Ukraine
Even though the list is done, we wanted to give a pat on the back to the latest member of the progressive crypto acceptance group.
In recent days, Ukraine has made headlines for finally legalizing and regulating cryptocurrency.
Bitcoin is still not equal to the country’s national currency, the hryvnia, unlike in El Salvador for example.
This comes after President Volodymyr Zelensky’s words from last September, that the country isn’t able to create a regulatory body for Bitcoin and cryptocurrency specifically. Up until now, cryptocurrency in Ukraine was a part of a legal gray area.
This is great news for Ukraine, a country that processes more transactions in cryptocurrency than in its own currency. The law called “On Virtual Assets” will also bring new opportunities for business development and more foreign investments into the country.
Takeaway
The Crypto Universe is ever-evolving. Today, these five are considered to be the most pro-crypto, but there is always an underdog looking from a distance, waiting for fifteen minutes of fame.
Cryptocurrencies are a great way to support growth processes in developing countries (just take a look at El Salvador). We have many examples of countries that welcome crypto gain a lot of benefits thanks to innovation, taxes and investment.
We are excited to see what country will be next to regulate cryptocurrency and with that, step into the future. The only thing we can say is - stay tuned!
Disclaimer: The information provided in this post is not legal, accounting, or financial advice. The information should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies.