As cryptocurrency adoption accelerates worldwide, certain countries are emerging as leading destinations for crypto investors, entrepreneurs, and digital nomads.
These crypto-friendly jurisdictions offer favorable regulations, low or zero tax rates on digital assets, thriving blockchain ecosystems, good Internet speed and a sustainable crypto environment.
Whether you’re looking to minimize taxes, start a business, or simply live in a place that embraces innovation, this guide explores the top countries paving the way for a decentralized financial future.
What Makes a Country Crypto-Friendly?
Crypto-friendliness has many layers. The term can carry varying significance depending on individual perspectives and the country’s crypto regulations.
The Global Intelligence Unit at Global Citizen Solutions released the Global Crypto-Friendly Nations Report ranking the most crypto-friendly countries, focusing on those with strong regulations, tax benefits, and transparency.
According to this report, the following factors are most important to consider when choosing a crypto-welcoming country:
1. Regulatory Environment
This assesses the clarity and favorability of a country’s laws regarding cryptocurrencies. Countries with well-defined regulations that support crypto activities and protect investors score highest in this category.
2. Economics
This examines the economic factors that influence crypto adoption, such as the country’s overall economic stability, inflation rates, and the potential for cryptocurrencies to serve as alternative financial instruments.
3. Tech and Innovation
This evaluates the country’s technological infrastructure and innovation capacity, including internet speed, cybersecurity measures, and the presence of blockchain-related research and development.
4. Green Transition
This considers the environmental impact of crypto activities, particularly the use of renewable energy sources in cryptocurrency mining and the country’s commitment to sustainable practices.
5. Governance
This assesses the effectiveness of government institutions, transparency, and the rule of law, which can influence the stability and reliability of the crypto environment.
10 Most Crypto-Friendly Countries
1. Switzerland
In 2018, Switzerland became the first country to allow crypto companies to open business accounts, establishing itself as a global crypto leader and attracting legitimate blockchain firms.
Switzerland classifies cryptocurrency as a digital asset and some Cantons (states) even recognize Bitcoin as legal tender.
For individuals, crypto holdings and trades via personal accounts aren’t taxed, while transactions by professional traders are taxed as business activities.
The Swiss Canton of Zug, also known as “Crypto Valley,” is a thriving center for blockchain startups. Zug offers zero capital gains tax on crypto and was one of the first areas to accept Bitcoin payments, making it a top choice for crypto investors and crypto citizenship.
2. Singapore
Singapore is a standout choice in Asia for crypto investors and crypto businesses due to its pro-innovation approach and favorable tax policies on crypto assets.
Known for its booming fintech sector, Singapore has no capital gains tax on crypto transactions for individual investors, allowing them to benefit from their crypto gains without the burden of additional taxes. This is particularly advantageous for those holding or trading crypto as part of their personal investments.
The Monetary Authority of Singapore (MAS) supports the growth of the cryptocurrency industry while maintaining strict anti-money laundering (AML) and counter-financing of terrorism (CFT) measures to ensure a secure financial environment. MAS has also introduced regulations that balance innovation with oversight, which offers reassurance to crypto businesses that operate within the country.
Although crypto trading companies and other entities that facilitate crypto transactions are subject to income tax, our GIU believes that the country has earned its high ranking on the report because it supports digital assets and has strong, clear regulations, which make it stable and full of growth opportunities.
3. United Arab Emirates
The United Arab Emirates (UAE) has emerged as one of the most crypto-friendly countries in the world, thanks to its clear regulations and proactive government initiatives.
Dubai’s Virtual Assets Regulatory Authority (VARA) and the federal Securities and Commodities Authority (SCA) have established comprehensive rules for virtual asset activities, ensuring investor protection and legal clarity.
Financial free zones like the Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) also offer tailored licensing and oversight, creating a great ecosystem for crypto businesses.
From an economic standpoint, the UAE enjoys strong crypto adoption, with over 30% of residents reported to hold digital assets. This reflects a high level of public engagement and acceptance. The government’s commitment to innovation is evident in initiatives like the Emirates Blockchain Strategy 2021, which integrates blockchain into various public services and sectors.
The country’s tax policy is another major draw. The UAE imposes no personal income tax, meaning individuals can trade cryptocurrencies without being taxed on gains. Corporate tax is a low 9% (only for businesses exceeding AED 375,000 in profit), and crypto transactions are exempt from VAT, making operations more cost-efficient for both individuals and firms.
Technologically, the country supports digital innovation, with strong infrastructure and initiatives that promote blockchain integration across sectors. Dedicated zones like Ras Al Khaimah’s Digital Assets Oasis provide an ideal environment for startups and entrepreneurs in the crypto space.
Finally, the UAE maintains high compliance standards with strict AML (anti-money laundering) and KYC (know-your-customer) protocols, enhancing the safety and legitimacy of its crypto ecosystem.
4. Liechtenstein
Liechtenstein has established itself as a leading crypto-friendly nation, offering a robust legal practices, favorable tax policies, and an environment that supports innovation.
Central to its crypto-friendly stance is the Token and Trusted Technology Service Provider Act (TVTG), also known as the Blockchain Act, which came into effect in January 2020.
This pioneering legislation provides comprehensive regulation for the token economy, ensuring legal certainty for businesses and protection for consumers. It encompasses various aspects of the crypto ecosystem, including token issuance, trading platforms, custody services, and more.
The Financial Market Authority (FMA) oversees the registration and supervision of crypto service providers, ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. The FMA’s Regulatory Laboratory fosters innovation by facilitating dialogue between regulators and fintech companies.
Taxation in Liechtenstein is also conducive to crypto activities. Individuals are not subject to capital gains tax on profits from trading cryptocurrencies, and there is no wealth tax. Companies benefit from a flat corporate income tax rate of 12.5%, with no capital or coupon taxes.
Liechtenstein’s commitment to technological advancement is evident in its support for blockchain and fintech initiatives. The government actively promotes the development of the token economy, recognizing its potential to transform various sectors. Educational institutions, such as the University of Liechtenstein, offer programs focused on blockchain and fintech, contributing to a skilled workforce in the field.
5. The Netherlands
The Netherlands has positioned itself as a leader in supporting crypto assets and crypto businesses, driven by a forward-thinking approach and a welcoming attitude toward digital innovation.
Ranked among the wealthiest and most progressive countries globally and holding the fifth position in our report, the Netherlands has embraced cryptocurrency as a legitimate financial tool.
Individual investors benefit significantly from the lack of capital gains tax on crypto transactions, meaning that gains from buying, holding, or selling crypto as an individual are not subject to additional taxes.
This supportive environment for crypto use is reinforced by the Dutch National Bank’s active role in regulating the industry, which has standardized practices and increased transparency in the market. Meanwhile, the Financial Action Task Force (FATF) guidelines are followed to ensure the integrity and safety of the crypto space, providing a secure ecosystem for crypto businesses and investors.
With minimal restrictions on crypto transactions and an open stance toward digital assets, the Netherlands is a top choice for investors looking for a stable yet innovative destination in Europe for crypto-related activities.
6. Portugal
For many crypto enthusiasts, Portugal is a top choice for living and investing in digital assets. Recognized as one of the world’s most developed nations, Portugal has made strides in tech innovation, prioritizing areas like blockchain and cryptocurrency.
A standout factor is Portugal’s crypto tax incentives, such as investors benefiting from tax exemptions on personal crypto gains. This policy has positioned Portugal as one of Europe’s most crypto-friendly countries despite potential upcoming changes.
Portugal also makes it easy for investors to gain residency in the country through their attractive Portugal Golden Visa program, which offers different investment options and allows the opportunity to enjoy the nation’s crypto-friendly tax incentives.
The Portuguese government also launched the Digital Transition Action Plan in 2020, encouraging business innovation and digital growth. This includes Technological Free Zones, where blockchain and crypto companies can conduct experiments, making Portugal an ideal destination for crypto investors looking to minimize tax burdens while enjoying a progressive and supportive ecosystem.
Take a look at our guide on The best countries for crypto citizenship
7. Austria
Austria has emerged as a leading crypto-friendly nation through establishing comprehensive regulations, implementing a favorable tax regime, and fostering a supportive environment for individuals and businesses alike who want to engage in cryptocurrency activities.
The Austrian Financial Market Authority (FMA) provides a transparent domain for crypto-asset service providers (CASPs). The FMA released preliminary guidance on the licensing process for CASPs in anticipation of the EU’s Markets in Crypto-Assets Regulation (MiCAR) in 2024. This type of proactive approach ensures that the country is not left behind as crypto activities evolve worldwide.
On the taxation front, Austria has streamlined its approach to crypto assets. Since March 1, 2022, cryptocurrency holdings are considered income from capital assets and are taxed at a special rate of 27.5%. This flat tax rate applies to both current income, such as mining or lending, and realized gains from sales or conversions. Furthermore, from January 1, 2024, domestic providers like Bitpanda automatically deduct the capital gains tax (KESt) for all individuals residing in Austria, simplifying the tax process for investors.
Austria’s infrastructure also supports the adoption of crypto. The country boasts the highest number of crypto ATMs per capita in Europe, with 56 machines serving its 9 million residents. Additionally, the sale of Bitcoin is available in all 400 post office branches and 5,000 kiosks nationwide. Vienna, the capital city, has especially embraced cryptocurrency, with over 100 businesses, including shops, bars, and restaurants, now accepting Bitcoin.
8. Estonia
Estonia is widely regarded as a top European destination for crypto-friendly policies despite its smaller size. The country has integrated cryptocurrency as part of its digital economy, treating digital currencies as equivalent to traditional assets for taxation purposes.
Crypto trading and mining activities are subject to capital gains taxes, providing transparency and a straightforward tax approach that appeals to investors. Furthermore, Estonia’s digital-forward stance includes supportive legislation that enables crypto businesses to operate efficiently.
One of Estonia’s largest financial institutions, LHV Bank, even offers its own blockchain wallet, showcasing the country’s commitment to encouraging digital innovation. These factors have led many blockchain companies to establish themselves in Estonia, which establishes the country as a secure yet innovative environment for those looking to invest or build in the crypto space.
9. Malta
Malta has established itself as a global leader in cryptocurrency through its progressive and supportive viewpoint toward digital assets.
The government introduced comprehensive legislation with three core laws—the Virtual Financial Assets Act, the Innovative Technology Arrangements and Services Act, and the Digital Innovation Authority Act—creating a structured regulatory ecosystem for crypto assets and trading.
These regulations include clear classifications for digital assets and innovative frameworks that allow secure growth for crypto businesses. Additionally, Malta offers income tax incentives favorable to both residents and non-residents. Not to forget that Malta is one of the few countries offering an exclusive Malta citizenship by investment program and a Malta residency by investment scheme to investors.
Malta Crypto Tax:
Everything You Need to Know!
10. Germany
Germany takes a unique approach to crypto taxation, distinguishing it from many other nations. While not entirely crypto tax-free, Germany offers notable tax incentives.
If individuals hold crypto assets like Bitcoin or Ethereum for over a year, they are exempt from capital gains taxes on their gains, which is a significant benefit for long-term holders.
Additionally, if crypto trading or exchange activities yield a profit under €600, these gains are tax-exempt. This income tax policy places Germany among the more crypto-tax-friendly countries in Europe, as it also ranks in the top 10 of our Crypto-Friendly Nations Report.
Germany offers sustainable digital investments while creating a serious, future-focused digital economy.
Honorable Mention: Argentina
Argentina’s economic landscape has made it a natural fit for crypto assets, especially as locals seek alternatives to the peso in response to high inflation. The government has generally taken a relaxed approach to crypto businesses and does not heavily tax crypto trading.
Argentina’s welcoming position and the increasing integration of crypto transactions have helped the country become a significant player in Latin America’s crypto sector. The lack of restrictive regulations makes Argentina a favorable environment for investors and those interested in a supportive regulatory landscape for crypto.
Pedro Solimano, a political scientist and crypto space specialist, pointed out during Global Citizen Solutions’ live stream on crypto-friendly countries that Argentina is a nation to look out for. “I think that Argentina is right now, the biggest and most under-covered story that’s happening in terms of potential growth for Latin America when it comes to crypto investments,” said Solimano.
1 | Switzerland | No capital gains tax on personal crypto investments; crypto recognized as legitimate digital asset. |
2 | Singapore | No capital gains tax; favorable business environment for crypto companies. |
3 | United Arab Emirates | No capital gains tax; low 9% crypto business tax; high crypto adoption; financial free zones are crypto business-friendly |
4 | Liechtenstein | No capital gains tax or wealth tax; flat corporate income tax rate of 12.5%; government support for a token economy |
5 | The Netherlands | Progressive tax policies; cryptocurrency is classified as an asset, and individual holdings have favorable tax treatment. |
6 | Portugal | No tax on personal crypto gains, though business-related crypto activities are taxed. |
7 | Austria | Flat tax rate; largest number of crypto ATMs per capita in Europe; high adoption rate of crypto transactions |
8 | Estonia | Low corporate tax on retained profits; no tax on personal crypto holdings unless exchanged for fiat currency. |
9 | Malta | No tax on long-term capital gains from crypto; strong regulatory framework for crypto businesses. |
10 | Germany | No tax on crypto held for over a year; exemptions for personal use under certain amounts. |
Least Crypto-Friendly Countries
China
China has been vocal in its strict regulations and crackdowns on cryptocurrencies and cryptocurrency-related activities. The country has implemented a ban on Initial Coin Offerings (ICOs), restricted cryptocurrency exchanges, and has taken steps to limit crypto mining operations.
India
India has expressed concerns about cryptocurrencies and has taken a cautious approach to their adoption. Although Indian residents are free to trade crypto, the government imposes a staggering 30 percent tax rate on crypto gains.
Algeria
Algeria has imposed a complete ban on crypto and all other digital assets, considering them illegal and restricting their use and trading.
Bolivia
Bolivia has banned cryptocurrencies, expressing concerns about financial stability and potential criminal activities associated with them.
Ecuador
There is no official ban on crypto in Ecuador: however, the Central Bank of Ecuador has made it clear that Bitcoin is not a legitimate form of payment. The country also plans to establish its own state-backed digital currency called the Sistema de Dinero Electrónico, which may set a precedent for prohibiting or excluding other cryptocurrencies.
Bangladesh
Bangladesh has prohibited the use of cryptocurrencies and deems their trading and transactions unlawful.
Morocco
Like Bangladesh, Morocco has banned cryptocurrencies entirely, considering them a violation of exchange regulations.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
Frequently Asked Questions about Crypto-Friendly Countries
What countries offer residency for crypto investors?
The following programs or visas are available for crypto investors in exchange for residency:
- Panama Residency by Investment
- Portugal Golden Visa
- UAE Golden Visa
- Antigua & Barbuda Citizenship by Investment
Which country has no crypto restrictions?
Singapore is a country with no crypto restrictions.
While Singapore does have regulations in place to address risks, it has generally been supportive of blockchain technology.
Which country has the lowest crypto tax?
El Salvador not only boasts one of the lowest crypto taxes but was officially one of the first crypto tax havens. This country was among the first to adopt Bitcoin as a legal tender.
Are there any European countries that are crypto-friendly?
Yes, several European countries are crypto-friendly, including Switzerland (with its Crypto Valley), Portugal, Germany, and Malta.
Are there countries where crypto transactions are completely tax-free?
Yes, countries like Portugal, Malta, Germany (under certain conditions), and Singapore have tax-free or very low-tax policies for crypto transactions.
Where can you live tax-free as a crypto trader?
Crypto traders can live tax-free in the following countries:
- UAE
- Portugal (if structured properly)
- El Salvador
- Puerto Rico (under Act 60)
Which countries accept cryptocurrency as legal tender?
El Salvador and the Central African Republic accept crypto coins as legal tender. However, the latter has limited adoption.
Which countries have crypto-friendly banking systems?
If you’re looking to open an account for your cryptocurrencies, the following countries have the most favorable systems:
- Switzerland
- Singapore
- Liechtenstein
- Estonia
- Gibraltar
