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The World’s Most Crypto-Friendly Countries

Cryptocurrency

November 26, 2024

Exploring crypto-friendly countries is advisable these days, especially for investors and entrepreneurs aiming to leverage growing opportunities in the world of cryptocurrency. 

While some countries welcome crypto innovation, others have imposed certain conditions and even strict bans. This has created a patchwork of legislation whereby crypto investors are only welcome in select jurisdictions. 

Crypto is kind of a big deal, especially for entrepreneurs or investors who want to grow their wealth and access services that help them do so.

And you’re busy, so the last thing you want to do is waste time trying to understand where exactly your crypto interests are best served. So, let’s break it down for you in simple terms.

The historical issue with internationalisation for crypto investors and entrepreneurs has been access to good banks and services that understand and respect cryptocurrency.

Many banks outright refuse to deal with the proceeds of cryptocurrency entirely. An increasing number of credit cards ban the purchase of Bitcoin from exchanges. 

The good news is that, while there is still a long way to go, things are improving. A growing handful of banks and fintech companies are declaring themselves open to crypto or are even crypto-only.We’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.

Pro-Bitcoin Countries
From Bitcoin to Ethereum to ICOs and blockchain startups, countries are competing to be “Blockchain Island” and “Bitcoin Nation”

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 to qualify as ‘crypto-friendly’. 

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, if new regulations or policies are enacted, today’s tolerant parties may well become the ‘we changed our mind’ brigade.

The most crypto-friendly countries are, naturally, those that go out of their way to attract Bitcoin and altcoins to their shores. 

No one country will cater to every crypto investor or entrepreneur, and it’s often wise to include a mix of crypto-friendly solutions from different countries in your personal plan.

The Most Crypto-Friendly Countries

Bermuda is a Crypto Friendly Country
Bermuda may be a tiny island in the Atlantic, but it’s taking big steps to become a Bitcoin haven.

El Salvador

El Salvador is widely known as the most crypto-friendly country. As such, in 2021, it became the first country to recognise Bitcoin as legal tender. 

The government released an app called Chivo Wallet, making it easier for residents to buy and sell goods using Bitcoin. Various incentives were made available for users of this app, including a small Bitcoin donation for new users. 

Tax residents of El Salvador pay no capital gains tax on profits from Bitcoin. 

Malta

Some call it ‘Blockchain Island,’ and it’s one of the most cryptocurrency-friendly countries in the European Union (EU) right now.

Malta’s parliament has long worked to cement the island nation’s pro-bitcoin standing. It passed three bills establishing a legal framework for blockchain technology in July 2018.

Doing this opened up its economy to further investment in a region where attracting foreign  investment, in general, is difficult. 

Malta offers crypto startups established regulation along with low net corporate tax rates and the possibility of opening an EU bank account.

Malta doesn’t levy any capital gains tax on long-held cryptocurrencies. Same-day trades, however, are subject to income tax. The country may also put income tax on crypto trades.

Liechtenstein

The tiny principality of Liechtenstein is one of the most crypto-friendly countries in the world.

The country’s banking system, which is now off-limits to US citizens and all but the ultra-rich, has started to open up to crypto. Bankers at places like Bank Frick are dealing in crypto for their clients and even advising on Initial Coin Offerings (ICOs).

Liechtenstein’s Crown Prince is courting the crypto community, claiming to be an investor himself and issuing reminders that while Liechtenstein is at the heart of Europe, it’s not in the European Union. 

For many crypto startups, this tiny country offers low taxes and friendly regulation.

Bermuda

The New York Times recognised Bermuda as an emerging destination courting crypto businesses and investors.

In August 2018, Bermuda passed legislation allowing a separate class of banking licenses favouring 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 and Altcoin iCash has also set up shop in Bermuda, maintaining that a smaller government is more 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 lustre as the world’s go-to economic haven (despite still being one of the top countries with no capital gains tax​), it may be attempting 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. 

The company correctly predicted the canton would adopt pro-crypto regulations at a time when many other parts of the world had not.

It’s claimed that the influence of Nikolas Nikolajsen, founder of Bitcoin Suisse, drove the region to be an early crypto pioneer.

Antigua and Barbuda

Officially, Antigua offers its citizenship-by-investment program in exchange for Bitcoin and other digital assets. However, we’re still waiting for evidence that the scheme is actually up and running. 

A more crowded field of ‘passport for sale’ offers and tighter restrictions on the flow of US dollars to tax-haven 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.

Georgia

At Nomad Capitalist, we are big fans of Georgia. While Georgian banks aren’t much in favour of cryptocurrencies, the government 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 subsidised 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 very cheap to live in and offers an interesting way of life. Entrepreneurs can apply for citizenship without waiting years, as with the other countries on this list.

Portugal

Portugal has developed a reputation as one of the most crypto-friendly nations in Europe.

Although it introduced more stringent tax rules in 2023, it remains a solid choice as a base for crypto investors.

Cryptocurrency earnings are exempt from value added tax (VAT) and crypto businesses have fewer legal hurdles to overcome than in other EU countries.  

Your cryptocurrency trades may not be taxed if you don’t trade often. Capital gains for long-term holdings (over 365 days) are tax-exempt. At the same time, profits held for less than 365 days are taxed at 28%.

Countries Where Crypto is Banned 

A handful of countries have introduced nationwide bans on owning or trading crypto-assets. These include China, Saudi Arabia, Pakistan, Bangladesh, Nepal, Egypt, Tunisia, Algeria, Morocco and Bolivia. 

Across the rest of the world, it’s generally legal to hold and trade cryptocurrency, although other more specific laws may have to be followed.  

Most Crypto-Friendly Countries: FAQs

Which country has the highest crypto adoption?

India is the country with the highest rate of crypto adoption, according to The 2024 Global Adoption Index. Surveys reveal that up 20% of the population owns cryptocurrency.

Is crypto a good investment?

Cryptocurrency is a risky investment due to its high levels of volatility. While many crypto investors have made money, others have lost a substantial amount.

Are there any countries where crypto is tax free?

Not many, but there are a few that offer crypto tax benefits. Portugal used to exempt crypto gains from personal income tax, but that changed in 2023. Malta has favourable regulations for crypto businesses, while the Cayman Islands has no direct crypto taxation.
Other countries that offer no capital gains taxes or other tax incentives include Bermuda, El Salvador, Georgia, Singapore, Slovenia, Switzerland and the United Arab Emirates.

Can crypto be sent internationally?

One of the key benefits of cryptocurrency is that it can be sent internationally at great speed without the sender having to pay excessive fees. 

Which countries can you spend Bitcoin in?

Countries like Switzerland, Liechtenstein, Bermuda and Georgia are considered Bitcoin countries and allow you to mine, buy or spend Bitcoin at various establishments.

Is it Time to Get Your ‘Plan B’?

Crypto may be the currency of the future but it also comes with plenty 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. 

We’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. Find out more here

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