5 Countries with the Most Crypto-Friendly Policies
Despite their growing popularity, Bitcoin and other virtual currencies are still not accepted in many states and nations. There are varying levels of ‘crypto-friendliness’ in different countries, which refers to each government’s policy regulations to support (or against) cryptocurrencies.
Some, like Ecuador and Bolivia, have banned the use of decentralized currencies altogether. However, others have a more accepting or positive stance towards crypto. These five are some of those countries that are generally crypto-friendly:
The small nation of Malta, which sits off Southern Europe, is a pioneer in cryptocurrency adoption. While Bitcoin or altcoins weren’t invented on the archipelago, Malta was the first country to regulate the use of blockchain technology in 2018. The Maltese government enacted legislation that protects its citizens’ interest by prohibiting unlawful practices like insider trading. Those who don’t follow are fined or incarcerated. They are also developing frameworks to integrate blockchain into different areas, such as public services.
Switzerland, one of the world’s richest countries, was also one of the first to adopt a forward-thinking approach with cryptocurrency. They’ve been able to enjoy tax laws in favor of crypto as well as a wide network of blockchain entrepreneurs, service providers, and investors. Much of the blockchain activity is concentrated within the Crypto Valley, a region that spans from the Swiss city of Zug to Lichtenstein. The Crypto Valley is continuing its expansion, however, as Coindesk reports that it’s also looking to tap into the Zurich market.
Singapore has one of the most flourishing economies globally. It also provides a supportive environment for businesses and new technologies to thrive, like cryptocurrencies. In fact, the country passed the Payment Services Act in 2019 as the regulatory framework of cryptocurrency payments. Bitcoin and altcoins can be used to pay for goods and services, whether domestically or internationally.
Japan is one of the most innovative countries globally, so it’s no surprise that the Land of the Rising Sun is also one of the most crypto-friendly states. In 2018, the Japanese Virtual Currency Exchange Association (JVCEA) was established in response to the Coincheck hack of the same year. The government formally recognized the JVCEA as the official regulatory body of cryptocurrencies in Japan. They ensure that digital assets are protected, and entities can use blockchain technology within a safe environment.
Some might not consider the US as a leader in cryptocurrency adoption. There are various regulatory agencies across different states, all with different approaches to digital currencies. However, the US is continuously moving to a more crypto-friendly space with policy changes and a more even approach to regulation.
What about the rest of the world?
Cryptocurrency regulations are ever-evolving, with many countries adopting a more positive stance towards virtual currencies. For instance, Vietnam’s Ministry of Finance evaluates its crypto policies by forming a research group for further development. With its complicated relationship with digital money, even China is creating its own currency for East Asian nations. The United Arab Emirates is also taking a more progressive approach to launch a regulated digital asset this year.
In other parts of the world, Canada has a very similar view of cryptocurrencies as the US and Australia, which maintains a generally crypto-friendly environment. European member states now accept digital currency transactions for services, while other EU countries have their own views and regulations.
The bottom line is that adoption of cryptocurrencies is still in its early years, but crypto-friendliness continues to improve worldwide.