Countries and cryptocurrencies
As an innovative type of digital asset, cryptocurrencies now enable secure and decentralized global trade. The regulatory environment is critical to fostering wider adoption of cryptocurrencies as they grow in popularity. In this blog, we explore cryptocurrency-friendly countries, resolve regulatory, tax and political issues, and encourage continued development of blockchain infrastructure. The acceptance and spread of cryptocurrencies largely depends on the regulatory environment that surrounds them. Clear and thorough laws in the blockchain sector make it easy to attract businesses and investors, and drive innovation.
Source: cointelegraph
El Salvador; The innovator's state
El Salvador became the first country in the world to introduce Bitcoin as legal tender in June 2021. years. President Nayib Bukele said the move aims to improve the country’s economy, facilitate sending money from abroad and encourage foreign investment. This small Central American state also became the first country to buy and hold Bitcoin as part of its reserves. Recently, a project called “Volcano Energy” was launched, which will use geothermal energy from volcanoes to mine Bitcoin and stabilize the electricity grid. This project aims to reduce the environmental impact of Bitcoin mining and show that it is possible to use renewable energy sources to mine cryptocurrencies. If you want to learn more about how El Salvador uses Bitcoin in its economy, you can read our special blog on the subject. In it, we will introduce you to how Bitcoin works in El Salvador, what are the advantages and challenges of its use, and how the population has adapted to the new currency.
Source: cointelegraph
Switzerland; European Capital
Switzerland is one of the most friendly countries towards cryptocurrencies and blockchain technology in the world. Some parts of Switzerland, such as the cantons of Zug and Schwyz, do not charge taxes on cryptocurrency profits for private investors. Also, some Swiss municipalities, such as Zermatt and Chiasso, allow their citizens and companies to pay taxes with cryptocurrencies. Switzerland is also home to many well-known crypto companies and projects, such as Ethereum, Cardano, Tezos, Polkadot, etc. These companies are attracted to the Swiss regulatory framework, which is tailored to the development of digital assets and blockchain. Switzerland has also established a special zone called Crypto Valley, which includes more than 1,100 blockchain companies and 14 unicorns (companies worth more than $1 billion). One of the most interesting examples of Swiss enthusiasm for cryptocurrencies is the city of Lugano, which plans to introduce Bitcoin, Tether and its own token LVGA as legal tender. The city has partnered with USDT stablecoin’s publisher, Tether, to accelerate the use and exploitation of bitcoin as the foundation for transforming the city’s financial infrastructure. The plan includes investing in blockchain startups, education on cryptocurrencies and decentralized technologies, building a blockchain hub and meetup space, and encouraging merchants to accept crypto payments with a 10% refund in the LVGA token. In this way, Lugano hopes to become the European capital of Bitcoin.
Source: cointelegraph
United Arab Emirates (UAE)
The United Arab Emirates (UAE) is an alliance of seven emirates on the east coast of the Arabian Peninsula. The country has the second largest economy in the Arab world (after Saudi Arabia), with a gross domestic product (GDP) of $414 billion, according to 2018 data. years. The state has made significant economic and social progress over the past decades, thanks to its rich oil and gas resources, but also to its vision of diversification and modernization. The UAE is also one of the countries that treats cryptocurrencies and blockchain technology extremely friendly. They have adopted a number of crypto-friendly rules and regulations, which encourage development and innovation in the sector. They are among the first countries to launch an initiative to explore the central bank’s common digital currency with Saudi Arabia, called “Project Aber”. According to a 2021 YouGov survey. In 2011, the state had the most confidence in cryptocurrencies of all 17 markets surveyed, and 15% of the population owned, bought or paid with cryptocurrencies in the previous three months. They are also known for their low or non-existent tax policy, which attracts many investors and entrepreneurs from around the world. There is no income tax, corporate income tax or inheritance tax. The only tax applied is value added tax (VAT) of 5%, which was introduced in 2018. It also applies to cryptocurrency transactions. However, the UAE also offers a number of VAT benefits and exemptions, especially for sectors such as health, education, real estate and financial services. Such a free market has contributed to the high acceptance of kriptovault, and the state is very likely to continue with further progress and adoption of cryptocurrencies.
Source: cointelegraph
Singapore; One of the most developed countries
Singapore is a city-state in Southeast Asia, which has one of the most developed and competitive economies in the world. The state has a high standard of living, education, health and safety, and is ranked as one of the best countries for business, innovation and human development. It is one of the most advanced countries in terms of crypto innovation and adoption. Singapore has a large number of people investing and using cryptocurrencies, as well as numerous crypto companies and projects that have decided to move or set up in Singapore. According to the 2021 YouGov survey already mentioned earlier. Singapore has the second most confidence in cryptocurrencies (behind the UAE) of all 17 markets surveyed, and 14% of Singaporeans owned, bought or paid for cryptocurrencies in the previous three months, just 1% less than the UAE. Some of the well-known crypto projects that originated or operate in Singapore are Binance, Huobi, KuCoin, Kyber Network and Zilliqa. The country also has a well-regulated and transparent tax environment for cryptocurrencies. Cryptocurrencies are not characterized as legal currencies or commodities, but as digital assets that are subject to income tax or corporate income tax. However, no value added tax (VAT) or consumption tax (GST) is charged on cryptocurrency transactions used as a means of payment. There are also numerous tax breaks and incentives for startups and innovators dealing with cryptocurrencies and blockchain technology. Ultimately, Singapore as one of the world’s leading economies, with a high standard, is an excellent country for building and launching crypto companies, so it is quite logical that it is one of the leaders in this field.
Source: cointelegraph
Croatia
Croatia is also a country that has favorable tax conditions for cryptocurrencies and blockchain technology. Cryptocurrencies are not considered as legal currencies or financial instruments, but as another type of asset. This means that no value added tax (VAT) applies to cryptocurrency transactions, only income tax or corporate income tax. However, Croatia also offers a special relief for long-term cryptocurrency investors: if cryptocurrencies are held for more than two years, no income tax or corporate income tax has to be paid. This is one of the most affordable tax schemes in Europe for crypto investors. There is also potential for growth and development, Croatia has several crypto companies and projects that could raise the acceptance and use of cryptocurrencies in the country and the region. Some of them are:
- Infobip: a global communication platform that provides solutions for SMS, voice calls, emails, chatbots and other channels. Infobip is one of two Croatian unicorns (companies worth more than $1 billion), and recently announced that it will allow its users to pay for cryptocurrency services.
- Rimac: electric hypercar manufacturer and provider of battery and powertrain solutions for other automakers. Rimac is also the second Croatian unicorn, and the company has shown interest in cryptocurrencies and blockchain technology. They participated in a project called “Blockchain for Social Impact Coalition,” which aims to use blockchain technology to solve social and environmental problems.
Croatia is a country that has a lot to offer fans of cryptocurrencies and blockchain technology. Favorable tax conditions, talented and innovative people, and ambitious and successful crypto companies are the key to success, and it is obvious that all of the above is present. So we can consider Croatia one of the hidden gems of the crypto world, with one of the more suitable regulations within the entire European Union.
Source: cointelegraph
Conclusion
In this blog, we explored cryptocurrency-friendly countries and their benefits. We have seen these countries demonstrate their support and openness to crypto innovation and adoption, through their regulatory, tax, policy and infrastructure frameworks. We have also seen that they have realized significant economic and social benefits from cryptocurrencies. We hope you enjoyed reading this blog and learned something new about cryptocurrencies and their impact on the world. If you are interested in more information about cryptocurrencies and blockchain technology, you can read some of our blogs or follow us on social networks (Twitter, Instagram), and if you have any questions or comments, feel free to contact us on our social networks.
