{"id":2201,"date":"2020-02-04T05:22:59","date_gmt":"2020-02-04T05:22:59","guid":{"rendered":"https:\/\/coindeveloperindia.com\/blog\/?p=2201"},"modified":"2020-02-04T06:11:24","modified_gmt":"2020-02-04T06:11:24","slug":"countries-for-legal-cryptocurrency","status":"publish","type":"post","link":"https:\/\/www.coindeveloperindia.com\/blog\/countries-for-legal-cryptocurrency\/","title":{"rendered":"Countries for Legal Cryptocurrency Businesses in 2020"},"content":{"rendered":"\n

There is absolutely no\ndoubt about digitization taking over the global economy and our\nlifestyle, the only question is, how soon we will adopt it?\nCryptocurrency is the obvious next step towards the embracing of a\ndigital era, this is a technology that allows us to bring more\ntransparency, efficiency, and security into our business. With this\nfintech solution, we can get rid of all the complex problems that\nhave restricted ourselves in taking an advanced step. But this is\ngoing to be possible only when the governments of different countries\nunderstand the significance of cryptocurrency and legitimize it for\ntheir citizen. \n<\/p>\n\n\n\n

So far, we have seen a mixed reaction from different nations across the globe, while some cracked down on it, a few embraced it with all its potentials. Most of the nations have neither rejected the power of this technology nor have accepted it with open arms. This ambiguous stance has left the experts speculating their next move around the world. The latest developments in this domain certainly suggest that we could see some positive moves made towards the induction of crypto into the mainstream. <\/p>\n\n\n\n

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Recently, the social media\ngiant Facebook made it official that it is going to launch its own\ncrypto. In a first, the Internal Revenue Service (IRS) also gave an\ninkling that would set up a framework for levying taxes on the\ntransactions of digital assets. \n<\/p>\n\n\n\n

A couple of countries have\nlegalized cryptocurrency which is certainly a laudable move but\nconsidering a large number of hostile ones, that could be equated\nwith a drop in the ocean. We can only hope that more nations would be\nforthcoming about the implementation of cryptocurrency this year. If\nwe are to accept crypto as a pioneering solution that could break new\nground in different domains, then it has to be a unanimous step. \n<\/p>\n\n\n\n

In this article, we will\ndiscuss the stance of different countries towards this fintech\nsolution including the possible steps they could take for\nincorporating it into their economy.<\/p>\n\n\n\n

1. Malta<\/strong><\/p>\n\n\n\n

It became the first country\nto regulate cryptocurrencies by approving the Virtual Financial\nAssets Bill on July 4, 2018. It is certainly a big step that has\nprodded many other nations to think about the implementation and\npositive effects of this technology. Historically, this island\nnation\u2019s economy has majorly depended on port trading for obvious\nreasons. However, the government is resolute to incorporate more ways\nto increase the revenue and the induction of cryptocurrency is\ncertainly going to lay a positive impact. \n<\/p>\n\n\n\n

2. Bermuda<\/strong><\/p>\n\n\n\n

Another country that took a solid step towards making crypto a \u2018virtual currency\u2019 for its citizens. The government of Bermuda has also passed the Virtual Currency Business Act that regulates the working of digital assets in the country. With this step, the startups and enterprises of this country have got greatly benefitted, they have found a new way to deal with assets. Not only that, they can acquire more transparency and execute voluminous deals as there is no charge on the crypto transactions. The country is already known for being a tax haven across the globe with levies on wealth, capital, income or VAT. It only has the provision of payroll tax that is 10% on certain goods and services. <\/p>\n\n\n\n

Related: Top 5 Trends In Cryptocurrency For 2020<\/a><\/em><\/strong><\/h2>\n\n\n\n

3. Switzerland<\/strong><\/p>\n\n\n\n

Probably the biggest safe\nhaven for those want to save taxes in their country. Switzerland has\nalways been the prime destination for various industrialists,\npoliticians, and celebrities who surreptitiously wanted to evade\ntaxes in their country. But that\u2019s not the reason it became an\nentrant in our list, with the policy of armed neutrality, Switzerland\nhas always worked towards maintaining peace and healthy economy\nacross the globe. With its stance towards cryptocurrency, this\ncountry has once again proved that it is ahead of others in bringing\nprosperity and innovation in the world. It can soon introduce the\nBitcoin taxation law in 2020 or in the next few years.<\/p>\n\n\n\n

4. Gibraltar<\/strong><\/p>\n\n\n\n

A British Overseas\nTerritory, known for the Rock of Gibraltar and a minuscule population\nof 32,000 people, this is the next country in our list that\nintroduced a law that recognized the existence of cryptocurrency. In\n2018, the government of Gibraltar drafted and passed the Distributed\nLedger Technology Regulatory Framework that legalized the buying and\nselling of cryptos in the country. It provides the freedom to the\nentrepreneurs who want to launch their ICOs with the legal backing of\nthe government. With this step, the country becomes a hub for various\nentrepreneurs who want a successful and seamless launch of their\ncrowdfunding campaign.<\/p>\n\n\n\n

5. Slovenia<\/strong><\/p>\n\n\n\n

A country located in Europe\nand known for an impressive human development and economy index, the\nRepublic of Slovenia has also been a step ahead from many countries\nin recognizing the potential of this technology. According to its\npolicy framed in 2017, the country doesn\u2019t levy any taxes on\nBitcoin or any other digital currency, a fact that gives plenty of\nopportunities to the crypto traders. However, if you have made\nprofits with your crypto trading, then you will have to pay the\nincome tax under the relevant laws. \n<\/p>\n\n\n\n

6. Singapore<\/strong><\/p>\n\n\n\n

Another highly-developed\ncountry with a remarkable GDP and human development index as well.\nThe government of Singapore deems Bitcoin and other cryptocurrencies\nas goods and not currency. This brings regulations in the working of\ncryptos as they come under the ambit of Goods and Services Tax (GST),\nthe current rate of which is 7%. The leaders of the country have\ntaken a positive stance towards this technology and said that they\nmust do some experiments to gauge its efficiency. While warning the\ncitizens about the risks involved in crypto trading, the Monetary\nAuthority of Singapore (MAS) maintained a welcoming gesture for any\nsort of discussion over it.<\/p>\n\n\n\n

7. Estonia<\/strong><\/p>\n\n\n\n

Located on the eastern\ncoast of the Baltic Sea in Northern Europe, this developed nation has\na high-income economy along with a noteworthy development index. It\nis also considered as one of the most digitally-advanced countries in\nthe world and the first nation to hold elections over the internet\nand to provide e-residency. With these technological advancements, it\nis no wonder if you hear that the country has an inclination towards\ncrypto. In this country, crypto is considered an alternative\ncurrency, not security which makes the earning through crypto trading\ntaxable under the capital tax of 25%. \n<\/p>\n\n\n\n

8. Georgia<\/strong><\/p>\n\n\n\n

A developing country\nthriving hard to attain the superior status, the Republic of Georgia\nis located in the Caucasus region of Eurasia. Like all the other\ndeveloping, this one is also making maximum efforts to attract\nforeign investment and cryptocurrency gives it a chance to amp up the\nrate of progress. The efforts for economic reforms and modernization\nalso engulf this technology and makes it a primary focus for the\ncountry. The preferential taxation scheme introduced by the\ngovernment allows more crypto users to indulge in this trade.<\/p>\n\n\n\n

9. Belarus<\/strong><\/p>\n\n\n\n

A landlocked country in\nEastern Europe, Belarus is one of the nations that has made trading\nof crypto easier in its territory. Being a manufacturing-centric\neconomy, this country has worked well on digital assets and come up\nwith measures that make trading even easier. It has waived all taxes\non the crypto transactions until January 2023 which means that the\nminers can also indulge in minting as many coins they want till this\nperiod. Besides trading, the law also encompasses the gifts and\ninheritances given in cryptos. \n<\/p>\n\n\n\n

10. Hong-Kong<\/strong><\/p>\n\n\n\n

As an administrative region\nof the People\u2019s Republic of China, Hong Kong has done an impressive\njob of inducting new technologies for the good of its citizens.\nCurrently, this entire region is embroiled in violent protests\nagainst the amendment in one of the key laws that snatch the autonomy\nout of the country\u2019s hands and bring it under the jurisdiction of\nChina. However, as far as its stance towards Bitcoin and other\ncryptocurrencies is concerned, the country has friendly regulations\nthat allow the citizen to enjoy the benefits of this technology. \n<\/p>\n\n\n\n

Besides these countries,\nthere are others that are likely to take some positive steps soon to\nincorporate this technology into their economy:<\/p>\n\n\n\n