The rise of cryptocurrencies has created a significant wave of change in the global financial system. With the influence of this wave, some countries aim to attract investors and entrepreneurs by adopting cryptocurrency-friendly policies. These countries stand out as “crypto-friendly” by legalizing cryptocurrencies, adjusting taxation policies, and developing crypto infrastructure.

Characteristics of Crypto-Friendly Countries:

  • Legal Framework: The legal status of cryptocurrencies is one of the most important factors that determine whether a country is crypto-friendly. Legal recognition and regulation of cryptocurrencies creates an environment of trust for investors.

  • Taxation: How cryptocurrency income will be taxed is also an important issue. While some countries prefer to tax cryptocurrency earnings as capital gains, some countries apply different taxation methods.

  • Infrastructure: A strong cryptocurrency infrastructure makes trading and using cryptocurrencies easier. This infrastructure includes elements such as cryptocurrency exchanges, ATMs and POS devices.

  • Regulations: Clear and transparent regulations governing the cryptocurrency industry contribute to the protection of investors and the healthy development of the industry.

Leading Crypto-Friendly Countries:

  • United States: Cryptocurrencies are legally recognized and regulated by agencies such as the SEC.

  • Portugal: Cryptocurrency earnings are tax-free and a cryptocurrency-friendly visa program is available.

  • Singapore: It has a well-developed cryptocurrency infrastructure and many cryptocurrency companies and exchanges.

  • Canada: Has a thriving cryptocurrency ecosystem and a growing number of cryptocurrency exchanges and ATMs.

  • Australia: Has a system for licensing cryptocurrency exchanges and cryptocurrency investments are taxed with capital gains tax.

  • El Salvador: Bitcoin was the first cryptocurrency accepted as legal tender.

  • Argentina: Cryptocurrency investments are taxed with capital gains tax.

  • Paraguay: Has a cryptocurrency-friendly legal framework.

  • Zimbabwe: Cryptocurrencies are used as an alternative means of payment in Zimbabwe, which is suffering from hyperinflation.

  • Kenya: Has a cryptocurrency-friendly legal framework.

  • Morocco: Cryptocurrency investments are taxed with capital gains tax.