Countries in which the crypto is already working

Cryptocurrencies are incredibly popular all over the world. Some governments even pass laws to encourage the adoption of this growing industry. Let's look at countries that are leading in this field.

Salvador

Salvador is the first country that adopted BTC as a legal tender. The government is transforming the digital economy by attracting foreiThe Coinomist entrepreneurs and investors who may not pay taxes on their crypto earnings. El Salvador is an asylum for people who want to save their money. 

The President of El Salvador, Nayib Bukele, is strongly promoting his country in the cryptocurrency field. Recently he announced that his country will buy 1 BTC each day, regardless of its price. More than 4 million residents of El Salvador own cryptocurrencies, this is 60% of the population!

Bitcoin and El Salvador flag. Source – Minfin.ua

Switzerland

Swiss banks were among the first to offer business accounts to crypto firms. Nowadays Switzerland interprets cryptocurrencies as assets, and there are some places where you can legally pay with BTC. 

The Swiss government has taken a step towards the regulation of crypto exchanges, which are legal in the country with an appropriate license from the Federal Financial Market Supervisory Authority (FINMA). Nevertheless, cryptocurrency income is taxed in Switzerland.

There is a Crypto Valley in Switzerland. It is a large-scale global blockchain center in the city of Zug. As of 2021, there were 50 major crypto companies with a combined value of $611.8 billion.

Bitcoin peeking out from behind the Swiss mountain. Source – Kraken

Hong Kong

Although Hong Kong is a special administrative region of China and not a separate country, there have been more friendly conditions for the development of cryptocurrencies than in China. Local government supports digital currencies, the region is full of crypto startups, there are many crypto ATMs, and the tax system is fair concerning the cryptocurrency sector.

According to Forex Suggest research, Hong Kong’s readiness score for widespread crypto adoption is 8,8. There is one more sign that crypto is very well adopted in this country – the Central Bank has already launched a prototype of a complex digital currency.

In 2023, Hong Kong will host a Web3 Summit, designed for investors, entrepreneurs, startups, NFT artists, and other crypto enthusiasts.

Crypto ATMs in Hong Kong. Source: Thestandard

Singapore

Singapore is one of the leading financial centers in the world. The country supports the adoption of cryptocurrencies and creates the appropriate conditions for their development.

The government of the country, together with the Monetary Authority (MAS), is trying to tokenize the economy and educate its citizens on the basics of crypto investing. Singapore regulates the cryptocurrency industry, ensuring the protection of investors.

There is no capital gains tax in the state, so people do not pay tax for profits from crypto trading. In addition, transactions with digital assets are considered barter and are not subject to commissions. Nevertheless, there is an income tax for residents who earn crypto. 

Crypto ATMs in Singapore. Source: Reuters

Ukraine

In 2021, Ukraine held 4th place in terms of crypto adoption per capita. In March 2022, President of Ukraine Volodymyr Zelensky signed the law “On virtual assets”, which legalized crypto usage and regulated the industry. In part, the decision was made because of Russian military aggression in order to stimulate the economic activity of the country in every possible way.

After that, Ukraine joined the European Blockchain Partnership, which consists of 27 EU member states. The Ukrainian government is interested in cross-border blockchain-based services testing. 

There is also the Blocckchain4Ukraine association, which consists of Ukrainian deputies who promote crypto, as well as the Virtual Assets of Ukraine (VAU) organization. In November 2022, they published a joint roadmap in the Web3 field. The document has a paragraph that describes the possibilities of implementing blockchain in healthcare and education. 

According to Merchant Machine research, in 2022 Ukraine entered the top three countries that use crypto most actively, along with the UK and the USA.

Web3 implementation roadmap illustration. Source: Blockchain4Ukraine

Slovenia

Slovenia is a cryptocurrency haven that has no taxes on crypto trading, and no VAT on mining. Since the Slovenian authorities publicly endorse the implementation of blockchain in government processes, the country can be considered one of the most digital currency-friendly in Europe.

Crypto startups are very widespread in this country. The market capitalization of blockchain projects per capita is one of the highest. There are around a hundred merchants that accept crypto as a form of payment in the Slovenian capital. There is also a BTC City in Ljubljana, the largest trading mall in Europe where visitors can pay with their crypto. 

In 2018, the world's first bitcoin monument was erected in the Slovenian city of Kranj.

Bitcoin monument in Slovenia. Source: Andrej Trcek.

Georgia

There are no legal restrictions for crypto trading in Georgia. Activities related to digital assets do not require a license. Residents of Georgia are not required to pay income tax on crypto trading profits. No VAT is charged for the exchange of digital assets for other currencies.

In 2018, Georgia ranked second in cryptocurrency mining after China: the fertile Alazani Valley has turned from a wine-making center into a cryptocurrency mining region. As of 2022, large mining data centers are located near Batumi, in Svaneti, and near Tbilisi.

Bitfury mining farm in Georgia. Source: Andrew Nort

Great Britain

The UK is also vying for the title of the leading crypto hub in Europe. The government is actively implementing a regulatory framework for blockchain and crypto. It is one of the reasons why British CoinFLEX became the first regulated trading platform for crypto derivatives. At the same time, the Bank of England insists on strict regulation of the virtual asset sector.

The UK is the first country where you can get a degree in blockchain technology at the University of Buckingham. The new Prime Minister Rishi Sunak is known for his plans to turn the country into the largest crypto hub.

Germany

According to German law, people do not pay taxes on income from cryptocurrencies that have been holded for more than a year. Digital assets are regulated by the Federal Financial Supervisory Authority (BaFin). The regulations for digital currencies are the same as for traditional banking transactions. In addition, Germany strictly enforces anti-money laundering policies, making it one of the safest countries for crypto trading.

In addition to the mentioned countries, many other states promote the development of the cryptocurrency sector – the USA, Canada, Portugal, Luxembourg, Estonia, the Netherlands, etc. Nowadays, there are almost no countries left that would not move in the direction of cryptocurrencies. Authorities are starting to understand the importance of technology, although there are still enough opponents of the integration of digital assets.