25 Most Crypto-Friendly Countries for Bitcoin Users (2023)

What are some of the most crypto-friendly countries in the world? Well, the crypto world is both exciting and dynamic. It provides a new form of individual empowerment, free from the control or oversight of central authorities.

However, this also means that those who participate in the crypto space are subject to different regulations based on their country’s stance on digital assets. In some countries, cryptocurrency use is outright illegal, while in others, it’s a booming industry that the authorities have embraced.

Most Crypto-Friendly Countries in 2023

This article compiles 25 countries where Bitcoin and other cryptocurrencies are either accepted as a form of payment or have lax regulatory oversight for investors. Read on!

1. Portugal

We cannot talk about crypto-friendly countries and fail to mention Portugal. This European country is ranked among the topmost desirable places to live in and has created a welcoming environment for Bitcoin. Portugal’s crypto-enthusiasm is largely due to its long history of economic instability.

In the early 1990s, Portugal experienced a period of hyperinflation that drove it into near bankruptcy and left the country in despair. Today, Bitcoin has given the Portuguese an opportunity to escape from their unstable currency system and live without fear or regret for tomorrow.

Even the Financial Crimes Unit of the Portuguese Public Ministry – a unit specializing in combating money laundering crimes and terrorism, has been very vocal about their support for Bitcoin-related technologies from an early stage. They have even implemented blockchain technology into some public services such as digital identification registration and online voting.

2. Malta

The Mediterranean island of Malta has a long history of attracting crypto-companies. For instance, Binance recently relocated to the country after receiving an unfavourable regulatory environment in Japan, despite the fact that this country is also crypto-friendly.

In March 2019, former Maltese Prime Minister Joseph Muscat announced plans for blockchain regulation and laws that will allow individuals and businesses alike to trade cryptocurrencies without fear of being penalized by the government.

The laws governing cryptocurrencies in Malta are extremely favourable for crypto investors. For example, the Maltese government is working on a regulatory framework that will allow blockchain companies to operate in Malta without any fear of prosecution or taxes.

They also have some Bitcoin gambling casinos operating over there.

3. Argentina

After years of economic turmoil and financial instability, Argentinians are looking into Bitcoin as an alternative means of storing their wealth rather than relying on unstable fiat currency.

Argentina is ranked as one of the most crypto-friendly countries in the world because it has a lot of potential for crypto development. Few regulatory hurdles stand in the way of cryptocurrency adoption and development in Argentina, making it a great place for miners, investors, and enthusiasts.

4. Switzerland

Switzerland has a very positive view of Bitcoins. The Swiss government has stated that Bitcoin is not illegal and does not threaten the country’s economy or other currency systems.

Switzerland has created a 100% tax exemption on profits made from the sale of newly issued securities to attract new start-ups and crypto businesses. The country also offers free access to electricity for Bitcoin miners to encourage them into mining operations there.

5. Luxembourg

The digital assets law enacted in Luxembourg last year is one way that this European nation recognizes cryptocurrency as a legitimate currency. There are no restrictions put on trading or using cryptocurrencies within the region, and it is ranked highly by several metrics compared with other countries across Europe.

 Due to its lack of regulation, low taxes, and pro-business stance, many companies have set up their headquarters here because they know that these factors will give them fewer regulatory hurdles to jump over.

Luxembourg is keeping up with the latest cryptocurrency trends that you can check here.

6. Georgia

A hotbed for Bitcoin miners, the country has taken a stance on digital currency that is welcoming and progressive. The Georgian government recognizes cryptocurrency as property rather than a legal tender yet encourages its citizens to take advantage of blockchain technology because they know that it will bring economic prosperity in the future.

The Ministry of Finance even offers favourable tax rates specifically geared towards attracting more investors into their borders.

A large number of companies had relocated here due to these incentives, with Bitfury Group being one such company that chose Tbilisi as their regional headquarters back in 2013 when they were first introduced to Georgia’s straightforward regulatory policies and the pro-business environment by EBRD (the European Bank for Reconstruction and Development).

7. Estonia

Estonia’s progressive stance on cryptocurrency is well documented, and it’s no secret that they are one of the most crypto-friendly countries in the world. This may be due to their own personal experience with currency collapses, like during 2008 when Estonian citizens lost around 40% of their national income due to the global financial crisis – thus making them reluctant towards adopting any form of centralized digital money.

The Financial Supervisory Authority within Estonia has issued a public statement that clarifies that “Estonia doesn’t regulate virtual currencies.”  The Estonian government even positions itself as a “Blockchain nation” because they aim to grow Estonia into the world’s first digital society, which should offer dependable digital services faster than any other country in Europe due to having low overhead costs.

8. Denmark

Denmark is another country that stands out for its progressive stance on crypto.  It is unnecessary to register with an exchange platform in this country if you want to start trading cryptocurrencies. All you need to do is set up an account with a local payment provider.

In Denmark, the Financial Supervisory Authority is currently evaluating whether Bitcoin should be regulated under its current Anti-Money Laundering Act.  As of now, it appears as if there will not be a crackdown on crypto trading in general or Bitcoin in particular, which is a big relief for Danish crypto investors.

In this Country, you can use Bitcoin to pay taxes and some public sector payments such as vehicle registration fees or healthcare services.

9. Canada

Canada is a crypto-friendly country, and there are no laws that restrict the use of Bitcoin or other cryptocurrencies.  Cryptocurrency businesses can freely operate in Canada as long as they comply with all local legal requirements. This is a very open-minded attitude towards cryptocurrency, which may not be present for much longer due to pressure from outside entities who have been pushing for strict regulations on crypto trading in recent years.

In this Country, it is possible to buy property using Bitcoins, but you will need to get your lawyer involved if you want them to hold onto any funds while waiting for formalities such as registration or title transfer before converting said currency into dollars (USD).

10. South Korea

South Korea is another country on the list of Bitcoin-friendly countries. In this country, trading is not prohibited, and authorities fairly regulate cryptocurrency exchanges. However, there is a ban on ICOs in South Korea that you should be aware of before investing.

11. United States

In the United States, there are no federal regulations for cryptocurrencies. State governments regulate cryptocurrency exchanges, and some have a more stringent system than others. For instance, New York has a BitLicense, which is considered one of the most stringent in the country. Other states such as California have a fairly lax regulation system. Each state has its own set of rules for cryptocurrency exchanges that you should be aware of before investing in any ICOs or trading cryptocurrencies. Always make sure to do your research by reading up on local laws before committing yourself!

12. Slovenia

Slovenia is one of the most Bitcoin-friendly countries in Europe. Authorities have explicitly expressed their intention to promote Bitcoin and other cryptocurrencies as part of a strategy to attract high-tech companies and investment into Slovenia. It has some advantages over other countries, such as tax reduction on crypto trading for six years (provided that all profits are reinvested back into the business).

13. Singapore

Another country that is very crypto-friendly and has a supportive regulatory system in place for cryptocurrency start-ups. The Monetary Authority of Singapore (MAS) announced on March 27th, 2018, that it would not regulate virtual currencies as part of its efforts to be innovation-friendly. Its laws favour crypto-related activities and do not mention any restrictions on mining or trading cryptos. This regulator also clarified that it would not impose licensing requirements on cryptocurrency exchanges as long as they have been authorized by the government or self-regulatory organization in another jurisdiction.

14. Vanuatu

Vanuatu is another crypto-friendly country, which is not a member of the European Union (EU). The Vanuatu Financial Services Commission has taken an open and supportive stance towards cryptocurrencies.

It recently issued AML/CFT guidelines for cryptocurrency exchanges to help them comply with its laws against money laundering and terrorism financing.

This country is also very crypto-friendly and is among the most welcoming jurisdictions for cryptocurrency mining.  It has no restrictions on crypto trading, as long as there are adequate know your customer (KYC) and anti-money laundering measures in place to comply with its laws.

Finally, Vanuatu has allegedly started to allow people to require citizenship using Bitcoin. Read more here.

15. Japan

Japan is, without a doubt, one of the most, if not the most, crypto-friendly countries in the world. It is one of the leading countries in blockchain investments, both by government and private companies alike, with a large focus on crypto-enabled services.

There are no special laws or regulations for cryptocurrencies in Japan, as long as they abide by anti-money laundering (AML) requirements and other existing financial rules such as those set out by the Financial Services Agency (FSA).

Cryptocurrency trading has become so popular that there’s even been an increase in “crypto cafes” where people can purchase food, enjoy high-speed internet connectivity, and spend their coins!  This country also offers favourable tax rates to citizens who make money from cryptocurrency trades – up to 20%, depending on how much profit was made.

16. Netherlands

The Netherlands has a very open stance on Bitcoin, as they believe it could potentially help stimulate their economy.

This country doesn’t have strict regulations for cryptocurrencies or ICOs specifically at this time, and follows the international standards required by FATF (Financial Action Task Force). They do not tax digital currency profits like other countries may and instead classifies them as “gambling” wins – meaning any profit made from cryptocurrency trades is subject to gambling taxes.

17. Lithuania

The biggest country among the three Baltic states, has already featured on our blog when talking about crypto friendly banks. Lithuania is the country with more crypto-friendly banks and with a booming start-up and blockchain industry it’s the idyllic scenario for crypto business to flourish.

Among the Lithuanian banks who accept Bitcoin there is Bankera, Mistertango, Simplex and Majestic. Also, in June 2018 the Ministry of Finance of Lithuania issued a guideline on ICOs, cryptocurrency taxation and security tokens.

So, while other countries governments were and still are reluctant in adopting cryptocurrencies, Lithuania saw an opportunity to get ahead and immediately regulate that market. They became one of the first countries to provide legal framework for crypto related activities.

More recently, LBCOIN became the world ‘s first blockchain-based digital collector coin. LBCoin was issued directly by the Bank of Lithuania.

18. Germany

Germany is one of the most crypto-friendly countries in the world. The country has a well-established legal framework for cryptocurrencies and Blockchain technology. In addition, it is home to many cryptocurrency exchanges and businesses that accept crypto payments.

Businesses and individuals who want to invest in crypto will find Germany to be a welcoming environment. The laws and regulations surrounding cryptocurrency are clear and fair, making it a safe place to invest.

The good news is, you won’t be taxed as long as you don’t hold your crypto for more than 18 months. This makes it a great place to invest for the long term.

19. The Bahamas

The Bahamas is another country that is friendly to cryptocurrency and Blockchain technology. The government has been supportive of the industry, and there are many businesses that accept crypto payments. The Bahamian central bank even announced its own digital currency, called the Sand Dollar, in October 2020.

Investors will find that the Bahamas is a welcoming environment for cryptocurrency. The laws and regulations are clear and fair, making it a safe place to invest.

20. Cyprus

The Mediterranean island of Cyprus has been a financial hub for years, and it’s no surprise that it’s also one of the most crypto-friendly countries in the world. The Cypriot government has been supportive of Bitcoin and Blockchain technology, and there are several exchanges based in the country.

Taxation on cryptocurrency is also relatively low, making it an attractive destination for crypto investors.

The Cyprus Securities and Exchange Commission even established an innovation hub to promote fintech and Blockchain startups. This shows that the country is serious about becoming a leader in the crypto space.

21. Bermuda

This country’s Digital Asset Business Act 2018 set up a regulatory framework for ICOs, exchanges, and other crypto businesses. The act provides a clear legal basis for crypto companies to operate in Bermuda and also establishes strict anti-money laundering regulations.

The government of Bermuda is also supportive of Blockchain technology and has been working on several pilot projects. For instance, the government is trialing a Blockchain-based land registry. Even though the plan has been ditched at the moment, it shows that the country is willing to experiment with crypto. This small island nation is definitely one to watch in the crypto space.

22. Czech Republic

The Czech Republic has been a hotbed for Bitcoin and Blockchain activity in recent years. Prague, the capital city, is often referred to as the “Silicon Valley of Europe.” And it’s no surprise why.

There are many startups and innovative companies based in the Czech Republic. What’s more, the government is supportive of crypto and Blockchain technology. The Czech National Bank even released a report outlining the benefits of Bitcoin and Blockchain.

The country is also home to several Bitcoin ATMs and exchanges. And taxation on cryptocurrency is relatively low, making it an attractive destination for crypto investors.

23. Gibraltar

This British Overseas Territory is one of the most crypto-friendly jurisdictions in the world. In 2018, the Gibraltar Financial Services Commission (GFSC) released regulations for businesses involved in distributed ledger technology (DLT). The regulatory framework covers Initial Coin Offerings (ICOs), cryptocurrency exchanges, and other crypto-related business activities.

The GFSC’s regulatory approach is based on principles rather than rules, which allows companies the flexibility to innovate.

24. Slovenia

Ljubljana is hailed as one of the world’s most crypto-friendly destinations. There are over 72 businesses and 33 sports venues that accept Bitcoin as payment. The government is also supportive of the cryptocurrency industry.

Slovenia even has a Bitcoin city, where you can buy almost everything with digital currency. This means that if you are an investor or entrepreneur in the cryptocurrency space, you will feel right at home here.

25. Mauritius

Mauritius is the only country in Africa that is crypto-ready. This small island nation has a population of just over one million people.

The Mauritian government is supportive of the cryptocurrency industry and has even released guidance for businesses involved in Blockchain technology and ICOs.

Even though there are no clear laws or regulations regarding cryptocurrencies, the government is supportive and has shown a willingness to work with businesses in this space.

Conclusion

In conclusion, there are many Bitcoin-friendly countries in the world that you can consider investing your money into if you want to use this financial technology – but not all of them will be perfect options for every person or company.

It is important to do thorough research before deciding how best to invest in cryptocurrencies because each country has different regulations on trading crypto assets, affecting how it interacts with fiat currencies such as USD, EUR, and GBP.

Before buying crypto, make sure you have a wallet or app like Tezro that allows you to trade crypto with total security and encryption.

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