Different countries are approaching cryptocurrency with varying degrees of openness and regulatory frameworks
El Salvador: Became the first country to adopt Bitcoin as legal tender in September 2021. The Central African Republic (CAR) followed suit in 2022, though this status was revoked in April 2023.
Switzerland: Known as the "Crypto Valley", Switzerland has a clear regulatory framework and recognizes cryptocurrencies as assets. Debut Infotech states that individuals holding crypto as personal investments benefit from no capital gains tax.
Singapore: A leading financial center, Singapore offers a balanced regulatory environment and supports crypto innovation. It boasts a thriving ecosystem with clear licensing regimes and low corporate taxes. Singapore does not have a capital gains tax on cryptocurrency investments.
5. Portugal: Offers zero tax on individual crypto gains for non-professional traders. This, combined with a progressive legal framework and attractive lifestyle, makes it appealing for crypto investors and digital nomads.
7. United Arab Emirates (UAE): Dubai and Abu Dhabi have become hubs for global crypto innovation and development, offering clear operational frameworks through VARA and ADGM. Debut Infotech mentions tax-free policies and crypto-friendly free zones like DMCC.
8. Estonia: Its digital-first approach, including e-residency, simplifies business operations for crypto companies. Debut Infotech notes its transparent legal frameworks and support for blockchain innovation.
9. Canada: Has a mature financial market and advancements in blockchain technology. Crypto is considered a commodity and subject to capital gains tax.
Australia: Offers clear regulations, consumer protection, and is supportive of blockchain innovation.
Japan: Recognized Bitcoin as legal tender in 2017 and has a clear regulatory framework under the Payment Services Act (PSA).
South Korea: Has established clear regulations for exchanges and trading, with strict but clear rules.
Hong Kong: Despite regulatory pressures, it remains a financial hub with an active crypto scene and new licensing frameworks for Virtual Asset Service Providers (VASPs).
India: Permitting Bitcoin trading but has imposed regulations to monitor crypto transactions. India has high adoption rates and is exploring a central bank digital currency (CBDC).
