10 Countries That Allow Cryptocurrency

TEMPO.CO, Jakarta - Cryptocurrency, or simply known as virtual money, has rapidly become a significant aspect of the global financial landscape. A number of countries have recognized its potential and embraced it to their economic system.

However, the legal status of cryptocurrency varies in each country. Some fully support its use while others impose outright bans.

In this article, we will explore several countries which allow cryptocurrency, citing from Investopedia and The Swiss Money. Which country do you think is considered crypto-friendly?

1. Switzerland

You can consider Switzerland as a crypto-friendly country. It has been promoting crypto, particularly for financial purposes, since 2016. The government also enacted the Swiss Anti-Money Laundering Act (AMLA), as well as its ordinance (AMLO), as the legal foundation of cryptocurrency.

2. Singapore

Singapore is another country that has established itself as a leading destination for cryptocurrency enthusiasts. The city-state implements clear and flexible regulations. Not to mention, crypto profits an individual gain are tax-free, but this does not apply for ones from trading.

3. Malta

Cryptocurrency in Malta are under some regulatory laws, namely the Malta Digital Innovation Act (MDIA) and the Virtual Financial Assets Act (VFAA). The Maltese government does not impose capital gains taxes on crypto transactions either.

Furthermore, should you be planning to explore more on the crypto world, consider joining certain crypto communities in Malta. The so-called "Blockchain Island”, too, often hosts international Blockchain and crypto events.

4. Portugal

Another European country which allows cryptocurrency is Portugal. The Swiss Money perceives it as a crypto-friendly country as the Portuguese government supports and even creates innovations for the development of cryptocurrency.

The digital currency also sees a promising future as crypto businesses and community events are flourishing in the country.

5. Canada

Canada is apparently a great place to invest on crypto, notably bitcoin. Investopedia mentions that the digital money is taxed based on how it is used.

The Canadian government has implemented clear regulations as well. For instance, cryptocurrency exchanges must register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

6. Estonia

Do you know that Estonia is one of the first countries embracing cryptocurrency? The Baltic nation, which promotes cashless society, has established a licensing system for crypto businesses. Since Estonia advocates the use of cryptocurrencies, blockchain startups and communities thrive in this country.

7. Japan

Japan portrays an important role in the cryptocurrency market. Besides establishing clear regulatory framework, the country further enhace its appeal as a crypto-friendly destination through the existence of Japan Virtual Currency Exchange Association (JVCEA).

The JVCEA runs as a self-regulatory body with responsibilities that include enforcing regulations and standards for cryptocurrency exchanges in Japan.

8. Germany

Most—if not, all—European Union members allow cryptocurrencies, one of which is Germany. Germany recognises the digital currency as private money in terms of crypto taxes. The country imposes strict rules to prevent fraud and money laundering which eventually provide a stable environment for crypto businesses.

9. Australia

Australia is another country allowing cryptocurrency. While there is no tax for bitcoin profits from personal-only use, the Australian Taxation Office still requires you to keep records of your transactions for tax purposes.

10. United Kingdom

The United Kingdom (UK) has allowed cryptocurrency since its debut. The UK’s Financial Services and Markets Act exists as a guidance to regulate digital assets.

Moreover, the government regulates a number of crypto assets, including exchange tokens, commodity-linked tokens, and crypto-backed tokens, according to Investopedia.

In addition, other countries not included on the list, such as France, Denmark, Austria, Bahamas, and Spain, also legalize the use of cryptocurrency, namely bitcoin.

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