This article discusses world’s most crypto-friendly countries and what makes a country crypto-frienldy.
The historical issue with internationalization for crypto investors and entrepreneurs has been access to good banks and services that understand and respect cryptos.
Many banks outright refuse to deal with the proceeds of cryptos entirely. An increasing number of credit cards ban the purchase of Bitcoin from exchanges.
The good news is that, while there are still a lot of fast-moving targets, things are improving. A growing handful of banks and fintech companies are declaring themselves open to crypto or even crypto-only.
W’ve helped dozens of cryptocurrency investors and business owners legally reduce taxes, reduce regulatory burdens, and build personal freedom. We can help you do the same. All you need to do is reach out to us.
What Makes a Crypto-Friendly Country?
In some cases, a country, bank, or other institution that is merely tolerant of crypto can be good enough. Think, for example, of a bank that serves as a waypoint between an exchange and a real estate investment; you don’t necessarily need a long-term relationship.
However, today’s tolerant parties may be tomorrow’s “we changed our mind” nightmares if new regulations or policies are enacted.
The most crypto-friendly countries are, naturally, those that have gone out of their way to attract Bitcoin and altcoins to their shores. As we say here at Nomad Capitalist, “Go where you’re treated best”. The easiest way to find out who will treat you best is to see who is literally begging for your business.
As in any other area, no one country will cater to every crypto investor or entrepreneur, and it is often sensible to include a mix of crypto-friendly solutions from different countries in your personal plan.
The Most Crypto-Friendly Countries
Malta
Call it “Blockchain Island.” So says the Parliament of Malta, which has long been working to cement the European island nation’s standing as pro-Bitcoin, and which passed three bills establishing a framework for blockchain technology in July 2018.
The benefit of Malta doing this is that it will open up its economy for further investment in a region where offshore investment, in general, is difficult. Malta’s banks have slowly been removing themselves as an offshore banking center, with many now refusing to accept foreign companies or even non-EU resident individuals for bank accounts.
Malta offers crypto startups an established regulatory body along with low net corporate rates and the possibility of EU bank account opening.
Malta also doesn’t levy any capital gains tax on long-held cryptocurrencies. Same-day trades, however, will be subjected to income tax. The country may also subject crypto trades to an income tax.
Liechtenstein
The tiny principality of Liechtenstein is not just one of only two double-landlocked countries in the world; it’s also becoming one of the most crypto-friendly countries in the world.
The country’s outsize banking system, which has become off-limits to US citizens and all but the ultra-rich as of late, has started to open up to crypto. Bankers at shops like Bank Frick are not only dealing in cryptos for their clients but are even advising on ICOs.
Liechtenstein’s Crown Prince is courting the crypto community, claiming to be investing himself and reminding that while Liechtenstein is in the heart of Europe, it’s not in the European Union. For many crypto startups, the alpine forests of this tiny country are perfect for the same reason the place has more corporations than people: low taxes and friendly regulation.
Bermuda
Bermuda has long been a leader in the insurance industry but has now joined the crypto revolution. The New York Times has also recognized Bermuda as an emerging destination courting crypto businesses and investors.
In August 2018, Bermuda passed legislation allowing a separate class of banking licenses favoring fintech, fearful that the small number of banks operating on the island were not encouraging crypto investment in the country. Bermuda has also passed a law allowing for fast approval of ICOs.
These efforts have not gone unnoticed; Binance is investing millions to set up compliance operations on the island; altcoin iCash has also set up shop in Bermuda, rightfully claiming that the government’s small size should make it nimble and responsive.
Switzerland
Switzerland is home to hundreds of blockchain startups, most headquartered in the low-tax canton of Zug, which has become dubbed “Crypto Valley”.
While Switzerland has lost its luster as the world’s go-to economic haven, it may be able to redeem itself with its crypto-friendly policies.
For one thing, the Ethereum Foundation is based in Zug. Switzerland has become a hub for initial coin offerings, and the exchange Shapeshift also chose to incorporate in Zug several years ago, correctly predicting the country and the canton would adopt pro-crypto regulations at a time when many other parts of the world were iffy.
It is claimed that the influence of Nikolas Nikolajsen, founder of Bitcoin Suisse, drove the region to be an early pioneer in welcoming cryptocurrency businesses.
Antigua and Barbuda
Antigua offers its upstart citizenship in exchange for Bitcoin (at least according to an official announcement). The proposal is still in the pipeline yet to be implemented.
The reason is simple: a more crowded field of “passport for sale” offers and tighter restrictions on the flow of US dollars to flyspeck islands means countries like Antigua need to diversify.
Perhaps Antigua is accepting Bitcoin as payment more out of an inherent need than a newfound love for cryptos, but we’ll take it nevertheless.
While the process still only takes a few months, it can be inconvenient, especially for crypto investors with non-western passports who may need a visa just to fly through an airport to get there.
On top of that, the citizenship isn’t finalized for several years. So basically, the most crypto-friendly citizenship countries offer the least attractive passports.
Georgia
At Nomad Capitalist, we are a big fan of Georgia. While Georgian banks aren’t much in favor of cryptocurrencies, the government of Georgia was one of the earliest adopters of blockchain technology.
Eastern Georgia has always been one of the wealthiest parts of the country, thanks in part to vineyards making wine in the ancient Georgian tradition. Today, the same valleys are home to crypto mining operations.
Electricity is rather subsidized in Georgia, making it easy to mine. The government is slowly opening up to the idea of cryptocurrencies, with one political party allowing its flock to use their computers to mine Bitcoin as a donation.
Unlike Liechtenstein or Switzerland, Georgia is dirt cheap to live in, offers an interesting way of life, and offers the possibility of citizenship for entrepreneurs
without waiting dozens of years as with the other countries on this list.
Get Your Plan B Now
Crypto may be the currency of future but it also comes with tons of volatility. Governments and banks worldwide may be slowly opening up to the concept of cryptocurrencies but there is still a long way to go.
The taxes, regulations, and restrictions surrounding crypto are still pretty vague and that’s why you need a Plan B to protect yourself against all the uncertainty.W’ve helped dozens of cryptocurrency investors and business owners legally reduce taxes, reduce regulatory burdens, and build personal freedom. We can help you do the same. All you need to do is reach out to us.
