Crypto Utopias. The List of The Most Crypto Friendly Countries

In this article I will make a brief description for each crypto friendly country and give you a choice of jurisdictions for your crypto startup.
Where to trade crypto? Where to open the crypto exchanges and crypto business? This question is often asked by those who are somehow connected with the crypto. It is obvious that the choice has to be made for the crypto friendly countries.

Japan

Japan by right is considered one of the most friendly countries to cryptocurrencies in the world. Thus, the Japanese financial regulator the FSA considers changing a legal basis of crypto exchange regulation.

FSA considers enforcing for crypto exchanges FIEA (Financial Instruments and Exchange Act) instead of the acting legislation.

It should be noted that Japan became the first country which realized the legislation recognizing cryptocurrencies as a method of legal payments and regulating exchange within the national program of licensing.

The largest exchanges in the country are BitBank, Zaif, BTC BOX. The list of platforms extends slowly. Also Japanese actively trade on Binance, Poloniex, KuCoin, Kraken

Seychelles

At the moment in Seychelles there are several large crypto exchanges registered. Possibly, they are attracted by lack of regulation of crypto trading and all advantages of an offshore zone like the system of taxation and limited exchange of information with other jurisdictions. At the same time the status of Bitcoin in this region is disputable.

Belarus

Legal regulation of crypto industry in Belarus is defined by the Decree № 8 On Digital Economy Development issued by the President of Belarus.

Decree provides wide prospectives for crypto industry in Belarus thanks to the following highlighted points:

  • Entities and individuals can legally get income from activities with tokens;
  • Crypto exchanges and exchange operators can legally act in Belarus;
  • Tax relief is enforced till January 1, 2023 for all companies making crypto business in Belarus;
  • Token is not a security, but remains to be an asset;
  • Exchanges can make their own rules and are only limited with the Decree statements;
  • Belarus recognizes smart contracts as a new way of making agreements;
You can get more information on crypto industry development in Belarus in our article.

For example, in Belarus there was founded the first legal crypto exchange currency.com. It allows users to trade tokenized version of global assets.

Georgia

At first it has to be mentioned that Georgia is ideal for mining thanks to low electricity costs and proper business regulations. According to the last research of Cambridge Centre for Alternative Finance (CCAF), Georgia occupies the second place in the world for electricity consumption, and on the first place is China with 111 megawatt per hour.

Along with that Georgian government actively uses blockchain - there is created Blockchain Land Registry, and are announced plans to use blockchain in education sphere.

Singapore

Singapore does not plan to introduce the system of licensing crypto exchange similar to that which was created in Japan. Nevertheless the government plans to divide crypto assets into three categories - utilities, security tokens, and the third group will include payment tokens. That are cryptocurrencies, such as bitcoin which the director of monetary management of Singapore Ravi Menon describes as very risky because of price fluctuations.

In general many cryptocurrency startups complain of not transparent legislation in Singapore that, despite desire of the government to involve crypto traders, can frighten off participants of crypto community.

Malta

Malta is considered to be one of the most crypto friendly countries, as a result, it has became the leader in the volume of cryptocurrency trading. The country considerably surpasses large players, such as Japan, Korea, China, the USA and Belize.

All this happened thanks to the fact that last spring the government of Malta adopted three laws:

  • The Bill of Digital Innovative Activity in Malta. Provides creation of Management on digital innovations which on a voluntary basis will certify blockchain platforms for crypto trading and providing legal safeguards.
  • Bill of Innovative Technologies. Defines a framework for registration of suppliers of technological services and certification of the technological agreements concerning administrators of systems and auditors.
  • Bill of Virtual Financial Assets and Services. Establishes the regulatory base for cryptocurrencies and ICO.

Great Britain

FCA published the document to provide clarity of regulation for the participants of the market who are carrying out the activity connected with cryptocurrencies. It is made to prepare the base for future laws on regulation of the crypto industry.

As crypto assets significantly differ by the rights which they grant to the owners and also on the actual and potential use, in Great Britain cryptocurrency assets into three types depending on options of their use:

  • Exchange tokens which more often are called cryptocurrencies. This incorporates the bitcoin, litecoin, air, etc. belong. They are not given and are not supported by any central authority and are intended for use as means of exchange. Usually they represent the decentralized tool for purchase and sale of goods and services without traditional intermediaries, such as central or commercial banks;
  • Security tokens. They represent investments within the law Financial Services and Markets Act within the second EU directive MiFID II. These tokens can grant the right for a part from profit or any other property rights;
  • Utility tokens are used as access to specified platforms and grant the right to use services or goods. At defined conditions these tokens can turn into digital money.
It is very similar to what was made in Switzerland where almost the same classification of crypto assets was adopted.

Though crypto assets can be also used as means of exchange similarly to traditional fiat currencies, now they are not recognized as lawful means of payment in Great Britain and are not considered as currency or money.

Switzerland

Switzerland starts process of registration crypto exchanges within which it is necessary to obtain the license from the FINMA to legalize the business. In Switzerland rules of enciphering also work: in February, 2018 FINMA published a number of the guidelines which applied the existing financial legislation on a number of the directions: from the banking sector and crypto trading to schemes of collective investments.

Switzerland got into the role of the neutral observer and the center of private financial and banking services long ago. For this purpose in the city of Zug in the central part of Switzerland was created a cryptovalley which in fact represents the independent, supported by the government association directed to creation of a global ecosystem where blockchain and cryptographic technologies are created. Besides the focus on innovations and development of a blockchain industry, Switzerland is also known as one of the leading countries on successful regulation of ICO.

At the same time the latest news about Switzerland obviously demonstrate that the country is in a crypto revolution waterway - quite recently the Swiss exchange announced development of a stablecoin for carrying out internal operations.

Australia

In 2017 the Australian government stated that cryptocurrency disputes are lawful and that bitcoin (and cryptocurrencies which share its characteristics) have to be considered as property and to be assessed with capital gains tax (CGT). Cryptocurrencies were exposed to contradictory double taxation according to a goods and services tax of Australia earlier.

In 2018 the AUSTRAC declared introduction of more reliable rules of exchange of cryptocurrencies. New rules demand that the exchanges working in Australia were registered in AUSTRAC, verify users, keep accounts and fulfilled obligations under the reporting in the sphere of POD/FT. In the future the unregistered exchanges will be subject to criminal charges and financial sanctions. Such conditions for certain will be attractive to the traders who are showing interest for the assets and those who are interested to keep them safe.

Conclusion

The list of the countries which actively accept a crypto is growing fast. Those countries which accepted a crypto today get more advantages - from growth of economy to attraction of increasing number of crypto startups.

At the same time a way and rate of acceptance of a crypto at all countries is different - someone begins directly with cryptocurrency, someone from mining, and some are focused on tokenization and trading.

Meanwhile the real leader in a race of crypto loyalty is Switzerland, but we shouldn't not hurry with conclusions - until the EU and the USA slowly but inevitably deal with crypto industry subtleties there is no clear picture yet.
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