Cryptocurrency has now reached nearly every part of the world and is quickly becoming a flexible and convenient way to make payments. At first, governments were unsure about cryptocurrency, mainly because of its anonymous nature.

However, things are changing. More governments are interested in becoming crypto-friendly and have started allowing crypto transactions, creating rules for them, and even adapting their economies to include crypto business.

Not too long ago, many countries viewed crypto businesses as a risk for money laundering. But that has changed. Today, there are several crypto-friendly countries, including some crypto-tax-free countries. Some countries do not impose capital gains tax on crypto mining and other crypto-related activities, making them ideal for businesses in the industry.

This guide includes a list of the best crypto-friendly countries, supported by the research done by our Global Intelligence Unit in our latest comprehensive Crypto-Friendly Nations Report. 

Here is more of what we will cover:

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 a report ranking the most crypto-friendly countries, focusing on those with strong regulations, tax benefits, and transparency.

The Global Crypto-Friendly Nations Report analyzes 75 countries through 13 indicators, such as tax policies and cybersecurity, to highlight regions that best support crypto adoption. It also addresses stricter regulations, like Europe’s MiCAR, which enhances transparency, investor protection, and market stability in crypto markets across the EU.

Clear regulatory framework

Countries with clear, well-defined laws for cryptocurrencies create a stable environment where investors and companies know what to expect. For instance, the EU’s Markets in Crypto-Assets Regulation (MiCAR) is an example of a regulatory effort to provide consistent rules across member states.

Favorable tax policies

Crypto-friendly countries often have tax advantages for crypto investors, such as low or no capital gains tax on crypto transactions. For example, Malta and Portugal do not impose capital gains tax on crypto held by individuals, making them attractive to crypto investors aiming to optimize their tax liabilities.

Pedro Solimano, crypto specialist and one of our guests during our cryptocurrency live session, explained:

“Any country that has a crypto-friendly tax regime will be offering tax benefits for people that are doing crypto trading, for companies, for investors in the space. Whether that’s Switzerland, Portugal, Liechtenstein, Dubai, El Salvador, Hong Kong, Singapore. Those are countries that might not have zero tax, but they will have less tax, and they will have things or structures in place for people that are looking to trade or invest, that will have friendlier benefits.”

Open financial institutions

Access to banking services is crucial for crypto businesses and investors. In some crypto-friendly countries, banks are more willing to work with crypto companies, making it easier to conduct transactions, obtain loans, and manage funds.

Supportive infrastructure

Countries like Switzerland (specifically the canton of Zug) offer resources such as blockchain hubs and incubators, which foster innovation and growth within the crypto industry.

Government and regulatory support

Pro-crypto policies and government initiatives to support blockchain technology, such as Dubai’s crypto regulations and Estonia’s e-residency program, make these countries attractive hubs for crypto investors and entrepreneurs.

Privacy and financial freedom

Many crypto investors prioritize financial privacy and seek countries that provide strong protections for personal and financial data, as well as liberal regulations on personal assets.

11 Most Crypto-Friendly Countries 

1. Switzerland

  • Crypto-Friendly Nations Report ranking: 1 

switzerland - best european countries

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, in some Cantons, even recognizes Bitcoin as a 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, 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

  • Crypto-Friendly Nations Report ranking: 2 

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 a regulatory framework that balances 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 second ranking on the report because it supports digital assets and has strong, clear regulations, which make it stable and full of growth opportunities.

3. The Netherlands

  • Crypto-Friendly Nations Report ranking: 5

virtual assets many countries attracting crypto businesses

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.

4. Portugal

  • Crypto-Friendly Nations Report ranking: 6 

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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

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5. Estonia

  • Crypto-Friendly Nations Report ranking: 8 

Tallinn estonia city

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.

6. Malta

  • Crypto-Friendly Nations Report ranking: 9 

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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!

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7. Germany

  • Crypto-Friendly Nations Report ranking: 10 

crypto users crypto holdings crypto profits

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.

8. Luxembourg

  • Crypto-Friendly Nations Report ranking: 12

Luxembourg

Luxembourg offers an accommodating environment for crypto businesses and investors by adopting a hands-off regulatory approach. While there is no specific regulation for cryptocurrencies like Bitcoin, this crypto-friendly country provides a supportive foundation for digital currency use.

Crypto exchanges in Luxembourg are regulated similarly to other financial institutions by the Commission de Surveillance du Secteur Financier (CSSF), ensuring that all financial activity, including crypto transactions, is well-monitored without strict constraints.

This supportive stance, combined with Luxembourg’s openness to crypto innovation, has made it a desirable destination for crypto enthusiasts and businesses aiming to stimulate a future-oriented digital economy.

9. Canada

  • Crypto-Friendly Nations Report ranking: 37 

tax regulations developing countries tax authorities

Canada, one of the fastest-growing economies in the world, was the first country in the Americas to establish a legal framework for cryptocurrency regulation.

Through the Proceeds of Crime and Terrorist Financing Act (PCA), Canada tracks transactions and monitors illegal activities in crypto payments, ensuring a regulated environment.

While cryptocurrency is not prohibited, Canada’s tax system is known for being unbiased and immigrant-friendly, making it one of the top crypto-tax-friendly countries. It does not impose heavy capital gains taxes on crypto trading or related activities.

Canada also ranks highly for cryptocurrency mining, thanks to its many resources and advanced technology, making it a top destination for setting up a crypto mining farm.

10. Slovenia

  • Crypto-Friendly Nations Report ranking: 46

Slovenia has a strong economy and ranks among the top 30 on the Human Development Index in Central Europe. The Slovenian government strongly supports cryptocurrency, actively encouraging the use of Bitcoin and other digital currencies. Slovenia’s tax system is one of the main reasons it’s considered a top crypto-friendly country.

Unlike many nations, Slovenia does not impose capital gains tax on profits from crypto trading or market fluctuations, as crypto is not classified as a financial instrument under Slovenia’s Personal Income Tax Act. This tax incentive is particularly advantageous, especially since many countries impose high taxes on crypto gains.

Additionally, Slovenia does not tax cryptocurrency mining, making it an attractive destination for miners. The country’s laws are also accommodating to cryptocurrency exchanges, and several crypto-friendly banks make it easier for individuals to trade digital currencies seamlessly.

11. Argentina

  • Crypto-Friendly Nations Report ranking: 64 

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.

Rank

Country

Tax Incentive

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.

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.

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.

12

Luxembourg

No capital gains tax on crypto held over six months; tax incentives for crypto startups.

37

Canada

Personal crypto gains treated as capital gains; favorable regulations for blockchain companies.

46

Slovenia

No capital gains tax on personal crypto transactions; crypto mining tax-free.

64

Argentina

Somewhat favorable tax framework with exemptions for low-value transactions; high inflation drives crypto adoption.

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

Which is the most crypto-friendly country?

Portugal is considered one of the most crypto-friendly countries due to its tax-free approach to individual crypto gains and progressive regulatory environment. Other top crypto-friendly countries include Switzerland, Malta, and Singapore. They offer favorable tax policies and regulatory frameworks for crypto businesses and investors.

Which country is number one in cryptocurrency?

It is challenging to designate a single country as the definitive number one country in cryptocurrency, as the cryptocurrency landscape is global and decentralized, and there are frequent changes in comprehensive crypto regulations, with many countries battling to control it.

Which country has no crypto restrictions?

Singapore is a country with no crypto restrictions. While Singapore does have regulations in place to address risks such as money laundering and terrorist financing, 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. The 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.

What are the most crypto-friendly countries in 2024?

The most crypto-friendly countries in 2024 are:

  1. Switzerland
  2. Singapore
  3. The Netherlands
  4. Portugal
  5. Estonia
  6. Malta
  7. Germany
  8. Luxembourg
  9. Canada
  10. Slovenia
  11. Argentina