More and more countries are recognizing the inevitability of the blockchain revolution and try to adjust the financial regulations and requirements accordingly. However, there are several states that have taken a positive stance on crypto, which translates to a legal acknowledgment of digital currencies as a viable means of payment and business operations. Here is the list of Top 5 countries where cryptocurrencies are gradually becoming a part of financial life.
Singapore currently upholds the reputation of the country that recognizes technological innovation and adapts its legislation in a way that lures the promising startups to this jurisdiction. Just check out the reported place of registration of most Asian cryptocurrency exchanges, and you will find out that the majority of them are domiciled in Singapore.
The fact is that the Monetary Authority of Singapore (MAS) has taken several meaningful steps towards facilitating the registration of cryptocurrency-related projects and establishing an advantageous taxation system. For instance, the applicable ‘Goods and Services Tax on Virtual Currencies” provides for the tax rate of only 7% for the domestic supply of services, while the international supply is not taxed at all.
The official policy of the Maltese government states that the country is striving to become the first “blockchain island” that welcomes tech startups with open hands. And indeed, they have already taken very concrete legal steps to show the seriousness of their intentions. Relaxed crypto regulation has been developed to attract promising blockchain projects from around the world that are tired of looking for regulatory arbitrage. Malta is probably one of the few countries in Europe that has a comprehensive regulatory framework for cryptocurrencies, ICOs, and the application of distributed ledgers.
Estonia follows the suit of Malta in terms of establishing herself as one of the blockchain powers in Europe. The government of this small Baltic country decided to exploit the rising popularity of cutting-edge technology and created the necessary legal conditions for the promising blockchain startups to thrive. No wonder that when one opens up the project info, more often than not, he finds out that it is registered in Estonia. This friendly attitude towards cryptocurrencies is dictated by the fact that Estonia has an ambitious plan to create a Digital Society with blockchain at its service.
The Land of the Rising Sun has traditionally been known as the pioneer of tech and innovations, including blockchain. Cryptocurrencies have officially been recognized as legal tender within the framework of the Payment Service Act, which allowed to eliminate the consumption tax on operations with cryptocurrencies, thus making them more accessible to the general public.
Thanks to that, the Japanese have become one of the biggest adopters of cryptocurrencies, with nearly a third of the population being involved with crypto to a different extent. Interesting fact, in the midst of the 2018 bear market, when the general sentiment towards crypto was at its worst, more than 200 Japanese companies applied for the cryptocurrency exchange license, which signifies the popularity of digital coins in this country.
Switzerland is home to the unique Crypto Valley, a tax and tech haven located in the city of Zug. The Crypto Valley Association (CVA) is the organization that manages the activities in this particular field and even lobbies the crypto agenda among Swiss regulators, which resulted in the passing of more than a dozen legislative acts that were favorable towards blockchain startups. The entire country is gradually turning into a world-class incubator for crypto startups and develops a legal framework that allows these companies to thrive. These are some of the reasons why Facebook chose Swiss jurisdiction for its Libra project.
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