Top 10 Crypto Friendly Countries in 2024
If you are a crypto enthusiast, investor or entrepreneur, you might be wondering which countries are the most crypto friendly in 2024. Crypto regulations vary widely across the world, and some nations are more welcoming than others when it comes to digital assets. In this blog post, we will rank the top 10 crypto friendly countries in 2024 based on their legal framework, tax policies, innovation hubs and overall support for the crypto industry.
Here is our list:
10. Lithuania
Lithuania is a small Baltic country that has embraced crypto innovation in recent years. It has a clear and favorable legal framework for crypto businesses, which are regulated by the Bank of Lithuania under the Law on Virtual Assets. Crypto exchanges, wallet providers and other service providers need to obtain a license from the central bank and comply with anti-money laundering and consumer protection rules. Crypto investors enjoy a low tax rate of 15% on capital gains from crypto trading, and there is no VAT on crypto transactions. Lithuania also has a vibrant crypto community and hosts several events and conferences related to blockchain and fintech.
9. Gibraltar
Gibraltar is a British overseas territory that has become a leading jurisdiction for crypto businesses. It was one of the first countries to introduce a bespoke regulatory framework for distributed ledger technology (DLT) in 2018, which covers crypto exchanges, custodians, brokers and advisors. The Gibraltar Financial Services Commission (GFSC) grants DLT licenses to qualified applicants who meet high standards of governance, risk management, security and customer care. Crypto investors benefit from a zero tax rate on capital gains from crypto trading, as well as no VAT or stamp duty on crypto transactions. Gibraltar also hosts the Gibraltar International Fintech Forum (GibFin), an annual event that showcases the latest developments in the crypto space.
8. Estonia
Estonia is a small Nordic country that is known for its e-government and digital innovation. It has a supportive and transparent legal framework for crypto businesses, which are regulated by the Financial Intelligence Unit (FIU) under the Money Laundering and Terrorist Financing Prevention Act. Crypto service providers need to obtain a license from the FIU and comply with anti-money laundering and consumer protection rules. Crypto investors pay a flat tax rate of 20% on capital gains from crypto trading, and there is no VAT on crypto transactions. Estonia also has a thriving crypto ecosystem and hosts several events and initiatives related to blockchain and fintech.
7. Malta
Malta is a Mediterranean island nation that has earned the nickname of "Blockchain Island" for its progressive approach to crypto regulation. It has a comprehensive and holistic legal framework for crypto businesses, which are regulated by the Malta Financial Services Authority (MFSA) under the Virtual Financial Assets Act (VFAA). Crypto service providers need to obtain a VFA license from the MFSA and comply with anti-money laundering, consumer protection and market integrity rules. Crypto investors pay a flat tax rate of 15% on capital gains from crypto trading, and there is no VAT on crypto transactions. Malta also has a vibrant crypto community and hosts several events and conferences related to blockchain and fintech.
6. Singapore
Singapore is a leading Asian financial hub that has adopted a balanced and pragmatic approach to crypto regulation. It has a clear and flexible legal framework for crypto businesses, which are regulated by the Monetary Authority of Singapore (MAS) under the Payment Services Act (PSA). Crypto service providers need to obtain a license from the MAS and comply with anti-money laundering, consumer protection and market conduct rules. Crypto investors pay no tax on capital gains from crypto trading, unless they are derived from trading activities or are their main source of income. There is also no VAT on crypto transactions. Singapore also has a robust crypto infrastructure and hosts several events and initiatives related to blockchain and fintech.
5. Switzerland
Switzerland is a renowned global financial center that has embraced crypto innovation with open arms. It has a clear and favorable legal framework for crypto businesses, which are regulated by the Swiss Financial Market Supervisory Authority (FINMA) under the Banking Act, the Anti-Money Laundering Act and the Financial Services Act. Crypto service providers need to obtain a license from FINMA or register as financial intermediaries depending on their activities and comply with anti-money laundering, consumer protection and market conduct rules. Crypto investors pay a low tax rate of 7% on capital gains from crypto trading, unless they are professional traders or hold their assets for less than one year. There is also no VAT on crypto transactions. Switzerland also has a thriving crypto ecosystem and hosts several events and conferences related to blockchain and fintech.
4. Dubai (UAE)
Dubai is a modern metropolis that aims to become a center of Web3 commerce and has been extremely supportive of blockchain technology. It has a supportive and innovative legal framework for crypto businesses, which are regulated by the Dubai Financial Services Authority (DFSA) under the Digital Assets Regulatory Framework. Crypto service providers need to obtain a license from the DFSA and comply with anti-money laundering, consumer protection and market conduct rules. Crypto investors pay no tax on capital gains from crypto trading, as well as no VAT or stamp duty on crypto transactions. Dubai also has a vibrant crypto community and hosts several events and initiatives related to blockchain and fintech.
3. Slovenia
Slovenia is a small Central European country that has a friendly and progressive attitude towards crypto. It has a clear and simple legal framework for crypto businesses, which are regulated by the Financial Administration of the Republic of Slovenia (FURS) under the Tax Procedure Act. Crypto service providers need to register with FURS and comply with anti-money laundering and consumer protection rules. Crypto investors pay no tax on capital gains from crypto trading, unless they are derived from business activities or exceed 50,000 euros per year. There is also no VAT on crypto transactions. Slovenia also has a thriving crypto ecosystem and hosts several events and initiatives related to blockchain and fintech.
2. Portugal
Portugal is a sunny Southern European country that has a welcoming and favorable attitude towards crypto. It has a clear and beneficial legal framework for crypto businesses, which are regulated by the Bank of Portugal (BdP) under the Law on Virtual Assets. Crypto service providers need to obtain a license from BdP and comply with anti-money laundering and consumer protection rules. Crypto investors pay no tax on capital gains from crypto trading, as long as they are not their main source of income and the tokens have been held for more than 365 days. There is also no VAT on crypto transactions. Portugal also has a vibrant crypto community and hosts several events and conferences related to blockchain and fintech.
1. El Salvador
El Salvador is a small Central American country that made history in 2021 by becoming the first country in the world to adopt Bitcoin as legal tender. It has a revolutionary and visionary legal framework for crypto businesses, which are regulated by the Bitcoin Law. Crypto service providers need to comply with anti-money laundering and consumer protection rules. Crypto investors pay no tax on capital gains from crypto trading, as well as no VAT or import duty on crypto transactions. El Salvador also has a strong crypto infrastructure and hosts several events and initiatives related to blockchain and fintech.
These are the top 10 crypto friendly countries in 2024 according to our ranking. Of course, this list is not exhaustive and there may be other countries that are also supportive of the crypto industry. However, we believe that these countries offer the best conditions for crypto enthusiasts, investors and entrepreneurs in terms of legal clarity, tax benefits, innovation hubs and overall support for the crypto industry.