There are lots of benefits to investing in Bitcoin in these countries.
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It’s been more than a decade that Bitcoin started the cryptocurrency market and since then, it has maintained its position of being the largest crypto coin according to market cap. People who have invested in Bitcoin 10 years ago are now reaping the benefits of its price hike. This has encouraged many new and experienced investors to try their hand at cryptocurrency investments.
Cryptocurrencies are decentralized. This means there is no government or financial body to regulate the flow of crypto. Due to this, many countries restrict their citizens from buying cryptocurrencies. China has even indefinitely banned cryptocurrencies. How friendly a country is towards Bitcoins and altcoins depends on how many it regulates cryptocurrencies and how the taxes are imposed. In that perspective, here are the seven crypto-friendly countries.
The Portuguese law is crypto-friendly. People who profit from Bitcoin investments are not taxed on capital gains. Additionally, the exchange of cryptocurrencies for other fiat currencies is also free of taxation. Portugal’s tax authorities stated that “an exchange of cryptocurrency for real currency constitutes an on-demand, VAT-free exercise of services.” Simply put, individual Bitcoin investors can choose Portugal for its tax laws. It’s only companies that can’t expect the same leniency.
Swiss banking standards are known for their high standards, with high privacy and low risks. The regulations for cryptocurrencies are also lenient. Switzerland is divided into 26 cantons, and each canton has its own legal treatment for cryptocurrencies. One canton might tax cryptocurrency and one might not, and within each canton, the rules might vary. In Zurich, capital gains on Bitcoin are tax-free. However, mining gains are taxed as normal income.
In Germany, cryptocurrency is private money. The crypto laws here favor long-term buy-and-hold investors. Residents who own cryptocurrency for a year and more don’t have to pay any tax. Residents who only hold cryptocurrencies for less than a year will be charged with capital gains tax.
Singapore is one of the most stable economies in the world. It is also one of the best places to do business. The country believes that cryptocurrency must be regulated to stop money laundering, but the innovation must continue. The Payment Services Act of 2019 regulated Singapore’s legal stance on crypto. The law clearly states that it is necessary to regulate cryptocurrency to prevent illegal activities while developing a thriving environment for cryptocurrency. Cryptocurrencies will not be charged for capital gains taxes in Singapore.
Many crypto exchanges and blockchain projects work out of this small Mediterranean Island. After Hong Kong tightened its regulations, Malta opened its doors for Binance exchange. Malta is a member of the European Union, which means crypto operations in Malta can be carried freely anywhere in the European Union.