In regards to the new technological advancements, the lawmakers are following to define the terms of the legal structure around which crypto solutions can work.
Over the previous year, governments have also strived to keep up with the speedy evolution of the cryptocurrency market.
While some countries like Korea and China have drawn a stance regarding the control over virtual currencies whereas other countries have adopted much more progressive position.
What the Current State Says?
Anyone seeking to open up a cryptocurrency business will obviously avoid the rare countries which actively neglect its use, either via
- Burdensome regulations
- Hostile banks
- Harsh taxation
- Even outright bans
There are some governments that are still settling on how to approach Cryptos and are yet to pass resolute legislation.
Instead, there exist certain countries that are however effortlessly trying to embrace digital currencies, as they realize it could be of tremendous profit to their economic future. By uplifting Bitcoin adoption and alluring crypto companies, these countries manage to place themselves at the vanguard of the financial innovation.
In this listing, you’ll find the best possible places to establish entirely new cryptocurrency business. Following factors are important to look for place to start your business:
- The tax rate on cryptos
- Attitude of lawmakers
- Friendliness of banks
- The clarity of regulations
- Business-friendly aspects of the country
This information is subject to sources, and changes.
This is one of the “Absolute Friendliest Countries” toward Digital currency and blockchain. Since April 2017, Bitcoin has been considered legal tender in Japan.
Nikkei Asian Review says: “This has been proposed by Japanese financial regulators. Bitcoin would be treated as an equivalent to traditional currencies in this country”.
Japan has adopted the digital revolution completely. It is the home to the initial crypto themed J-pop band- “Virtual Currency Girls”.
Recently, the 2 largest virtual industry groups- “The Cryptocurrency Business Association” and “The Blockchain Association”. However it has have also launched a merger to create a self-regulatory body.
Denmark is one of the popular crypto-friendly countries worldwide, boasting a well attractive 0% tax on cryptos. This country doesn’t consider cryptos as legal tender as they do not have any issuer. Thus they are free from regulation as mentioned by the “The National Bank of Denmark”.
3) Hong Kong
In this country, Bitcoin is free from VAT and capital gains taxes as well. However, income tax is still applicable while a business receives HKD or BTC. The country has its self-built currency- “Hong Kong Dollar” (HKD), with lots of trading volume.
Back in April 2018, the Treasury agency and Hong Kong Financial Services reported on terrorist financing and money laundering. However, as a result the digital asset had no visible impact in these sectors.
This Baltic country has one of the most tech-friendly governments. Starting from healthcare to banking services, Bitcoin possess an all-encompassing implementation in this country.
Estonia Government has initiated to transform their townsman as e-townsman by providing blockchain based e-voting system. The country has many numbers of Bitcoin ATMs as well.
This country’s economy is built in port trading. The Malta Financial Services Authority (MFSA) has successfully drawn credit-card issuing banking licenses, ship and aircraft registration, fund administration, and gaming businesses.
The country is the EU’s crypto leader because of its favorable detailed legislation. It is one amongst the EU countries which don’t impose a property tax. However, the business tax for global residents is 35%.
Back in January 2018, the MFSA started making plans to allow regulated investment into ICOs and cryptos.
In April, an economic minister announced that Malta desires to become “The Blockchain Island”. So, this inherited function seems to bring light in the near future.This option is preferable.
Overall Legal Position- Cryptocurrency
By looking from a global perspective, it’s evident that most countries with a steady economy with technological provision. Therefore they are adapting the cryptocurrency in their particular places with or without regulation.
Hence, it is clear that the way digital currencies are creating inroads in the global economy; in just a matter of time, it’ll be globally legitimized.
The Future of International Crypto Regulation
All of the mentioned crypto-friendly countries provide different benefits to individuals and businesses operating or investing in the development of blockchain ecosystem.
One similar factor is the proactive foundation of self-regulating organizations or communities that are trying to lead the growth of crypto regulation in a productive direction.
With the league and alliances- the Dutch Blockchain Coalition, Crypto UK, as well as Japan’s recent self-regulatory organization, the digital industry is stepping towards assisting regulatory arms to keep alongside the blockchain ecosystem.
Image Source: Crypto-Friendly Countries