While some countries have a strict monetary policy against bitcoins, others have begun to embrace this system and open up to the cryptocurrency world. In the first part, we looked at some of them. We will continue with the second part of cryptocurrency friendly countries today.
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Cryptocurrency friendly countries – Part 2
In terms of bitcoin trading volume, the United States ranked first in the list with the maximum number of bitcoin traders. The United States has been a pioneer in the world of bitcoin trading since its inception. With the maximum number of bitcoin ATMs and other start-ups in Silicon Valley, which promote cryptocurrencies.
However, keep in mind that all cryptocurrency transactions will be subject to personal income tax or capital gains tax.
There are many trading platforms and bitcoin ATMs in the US, especially in San Francisco, New York, Florida and many other US cities.
Canada has always been one step ahead and recognized the validity of Bitcoin by creating and adopting an official cryptocurrency law.
The country is very friendly to bitcoins, and the people who live there will vouch for it because there is an incredibly high number of bitcoin traders working under official law.
Precisely, Toronto and Vancouver are on their way to the prosperity of bitcoin nodes, and therefore the state of the earth seems very promising for crypto users. However, cryptocurrencies are taxed in Canada as either capital gains or income tax, depending on whether your cryptocurrency activity is considered a business.
There are over 900 bitcoin ATMs in Canada, most of them in Toronto, Montreal, and Vancouver.
Slovenia is a Central European nation with a population of around 2 million. It has a cryptocurrency-friendly government and financial institution that does not restrict those involved in bitcoin transactions.
Bitcoins and other cryptocurrencies are classified as virtual currencies. This means that Slovenia does not need to tax bitcoins as money but as income tax.
The country has 20 ATMs for cryptocurrencies, and 10 of these facilities are located in its capital city Ljubljana.
In terms of political stability, this high-ranking country is one of the few jurisdictions that supports a zero-capital policy for receiving cryptocurrencies. Therefore, it is one of the most cryptocurrency friendly countries in the world.
The Singapore Monetary Authority also allows some cryptocurrency companies to operate without a license during a six-month grace period.
The capital gains tax does not apply to long-term investments in Bitcoin. Singapore does not currently have a capital gains tax system in place.
So profits from long-term investments are not currently taxable. Still, if cryptocurrency transactions are considered a revenue asset, taxes could be applied depending on the nature of the return.
In Singapore, there are currently 12 bitcoin ATMs located throughout the country in various locations.
Japan is a leading country in the crypto space and was also the first country in the world to approve Bitcoin as legal tender.
The nation was also the first to adopt extensive rules for its 32 cryptocurrency exchanges to improve their security. Japan even offers tax-free bitcoin transactions and encourages other countries to join.
The country is on track to become one of the nations most prone to cryptocurrencies. Many new start-ups and businesses in Japan have already begun to identify and accept cryptocurrency shifts in their usual activities. The government duly recognizes all transactions that take place in this area.
Conclusion on cryptocurrency friendly countries
Some countries are more open to cryptocurrencies, others less so. However, there is no doubt that with the growing interest from the public and institutional investors, the overall adoption in the world is increasing. Thus, the interest of individual governments, especially the CBDC.
Evidence of this may also be that China, where the crypt trade is still banned, has newly identified cryptocurrencies as an investment alternative. It is preparing to support them further. In the following article, we’ll look at five other crypto-friendly countries.