The regulatory adaption can not keep up with the global rise of cryptocurrencies, at least in most countries. In this article we will look at some of the best countries to live as a cryptocurrency investor. Important to note is that tax regulations regarding crypto are changing rapidly and therefore we recommend that you speak to a tax lawyer from the related country before you make any decision.
This article is about following countries:
- Portugal
- Switzerland
- Germany
- Singapore
- Malta
Portugal
Laws regarding cryptocurrencies are very crypto-friendly in Portugal. The Portuguese authorities have taken a soft stance towards investments in digital assets. Individuals who gain profits from the buying and selling of cryptocurrencies are not taxed on their capital gains. Furthermore, trades from one cryptocurrency to another will not be taxed either.
In 2020 Portugal established a 'Digital Transitional Action Plan' in which they promote digitalization. Additionally, this action plan includes 'Technological Free Zones' to enable blockchain and other experimental fields to flourish.
Switzerland
Switzerland is probably best known for its beautiful landscape and the high standard of living. But this country is also well known for their incredible banking standards. Switzerland has very soft regulations regarding traders and investors of cryptocurrencies.
The tax applied will differ from canton to canton, but they are usually quite lenient. Additionally, Switzerland is a great place for getting started in the crypto mining industry.
Germany
While Germany has not acknowledged any cryptocurrency as legal tender (yet) it treats digital assets as private money. Germany might be the paradise for long term holders since cryptocurrencies holdings are not taxed if you hold them longer than a year.
Therefore, Germany can be seen as a cryptocurrency friendly country for long term investors. If you want to avoid taxes but you do not plan to hold on to your investments long term, then you might want to reconsider.
Singapore
Singapore enjoys the title as the probably most well-developed and stable economy in the world at the moment. It can be observed that the number of crypto miners and also traders is rising.
Singapore is a tech hub located in southeast Asia. The regulations try to carefully monitor and prevent illegal activities and money laundering. Consider moving to Singapore if you want to legally develop your crypto business under well balanced regulations.
Malta
Malta is a island located in the Mediterranean Sea and is also a member of the European Union. The country is known for soft regulations towards cryptocurrencies. In fact, when Hong Kong tightened its regulations Binance relocated to Malta.
Malta is lacking clear regulation on cryptocurrencies but considering the number of traders, investors and miners being there, it is hard to see this as something bad.