Cryptocurrency has revolutionized investment and the digital asset landscape, contributing to economic growth in many regions.
Recognizing this potential, numerous countries have adapted their regulatory frameworks and introduced laws to attract crypto businesses and startups.
In 2024, the global landscape of crypto-business-friendly nations is rapidly evolving, with some countries standing out for their proactive approach to fostering the growth of crypto enterprises.
Our research reveals that nations like Switzerland and Singapore are consistently recognized as top crypto-friendly jurisdictions, while others such as Estonia, Malta, and the UAE are also making significant strides in this arena.
After an in-depth analysis of regulatory policies, tax frameworks, and business conditions, we’ve ranked the top 10 countries shaping crypto businesses’ future.
Explore our list of the world’s most crypto-friendly nations, highlighting those that provide the most favorable environments for blockchain and crypto ventures.
Quick Overview of Key Statistics
- Dubai (Score: 79): Dubai leads with top scores in regulatory clarity, no capital gains tax, and favorable corporate tax (9%), plus affordable licensing fees, making it a top crypto destination.
- Switzerland (Score: 74.5): Switzerland ranks second, with 900 registered crypto companies and a favorable 7.8% capital gains tax for long-term investors.
- South Korea (Score: 73.5): South Korea holds the third-highest score, playing a key role in the global crypto landscape.
- Singapore (Score: 72): Singapore ties for fourth, with $8.9 million in blockchain grants, offering strong support for crypto businesses.
- Brazil (Score: 66.5): Brazil ranks 10th, trailing Dubai by 12.5 points but maintaining a strong presence.
- Germany (Score: 66.5): Germany matches Brazil’s score, offering similar conditions for crypto businesses.
- USA (Score: 71): The USA leads in crypto adoption with 5,968 businesses accepting cryptocurrency, scoring 20/20 in this category.
- Portugal (Score: 51.5): Portugal has 108 businesses accepting crypto, a 28% short-term capital gains tax, but favorable conditions for long-term investors.
- Malta (Score: 59.5): Malta supports blockchain businesses with a 35% corporate tax but a favorable regulatory framework and 15 authorized crypto companies.
Top 10 Crypto Business Friendly Countries
- Dubai
- Switzerland
- South Korea
- Singapore
- USA
- Estonia
- Italy
- Russia
- Germany
- Brazil
1. Dubai
- G20 Nation – Yes
- Regulatory Framework: Dubai Multi Commodities Centre (DMCC), Dubai Financial Services Authority (DFSA)
- Clarity of Laws: Clear and supportive
- Capital Gains Tax: No capital gains tax
- Corporate Tax: 9% for taxable income above AED 375,000
- Registered Crypto Companies: 550+
- Crypto Business Friendly Total Score: 79/100
Dubai has emerged as a progressive crypto country in the last few years. Its DMCC ( Dubai Multi Commodities Centre) has even added a crypto center and a launchpad for companies working with crypto and blockchain technologies.
This G20 nation has regulatory entities like VARA (Virtual Asset Regulatory Authority) and DFSA ( Dubai Financial Services Authority).
Companies must register with DFSA and DMCC to operate a crypto business in Dubai. The government does not impose a capital gains tax on crypto corporate income, making it appealing to crypto firms.
Additionally, Dubai has a low corporate income tax rate of 9% for income above AED 375,000. There are currently over 550 registered crypto firms operating in Dubai.
2. Switzerland
- G20 Nation – No
- Regulatory Framework: Swiss Financial Market Supervisory Authority (FINMA)
- Clarity of Laws: Clear and supportive, especially in Zug
- Capital Gains Tax: 7.8%
- Corporate Tax: 12%-21%
- Registered Crypto Companies: 900+
- Crypto Business Friendly Total Score: 74.5/100
Switzerland has made significant strides in the crypto space. Its city of Zug is recognized as a global crypto hub. In 2018, the economy minister, Johann Schneider-Ammann, announced his vision to make Switzerland a crypto nation.
The Swiss Financial Market Supervisory Authority (FINMA) provides clear and supportive regulations, particularly in the crypto-friendly canton of Zug. Crypto companies are required to register with FINMA.
The clarity of laws here has made it a preferred destination for over 900 registered crypto businesses.
The nation has established reasonable tax rates for crypto service providers.
Switzerland has imposed a 7% capital gain tax and corporate tax income rate ranging from 12% – 21%. Plus, over 400 various companies within the country accept cryptocurrency as payment.
3. South Korea
- G20 Nation – Yes
- Regulatory Framework: Korea Financial Intelligence Unit (KFIU), a division of the Financial Services Commission (FSC)
- Clarity of Laws: Developing clarity
- Capital Gains Tax: Postponed (0%)
- Corporate Tax: Postponed till 2025
- Registered Crypto Companies: 376+
- Crypto Business Friendly Total Score: 73.5/100
South Korea, another G20 country, is becoming a hotspot for crypto businesses.
The digital asset transaction and services are regulated by entities like the Korea Financial Intelligence Unit (KFIU), a division of the Financial Services Commission (FSC).
However, the regulations concerning cryptocurrency in this area are still being developed.
To run a crypto service firm in South Korea, businesses need to register with FSC and operate in compliance with the same entity’s laws.
Even though the regulatory framework is still developing, the country’s commitment to fostering a crypto-friendly environment is evident.
South Korea currently has postponed capital gains tax, and the corporate tax will be enforced in 2025. With over 376 registered crypto companies, South Korea is steadily gaining traction as Asia’s crypto powerhouse.
4. Singapore
- G20 Nation – No
- Regulatory Framework: Monetary Authority of Singapore (MAS)
- Clarity of Laws: Clear and supportive
- Capital Gains Tax: No capital gains tax
- Corporate Tax: 17%
- Registered Crypto Companies: 100+
- Crypto Business Friendly Total Score: 72/100
Singapore is a prime business hub, including for crypto companies.
Corporations need a license from the Monetary Authority of Singapore (MAS) to establish a crypto business in Singapore.
Additionally, the country supports the crypto industry through the Cryptocurrency and Blockchain Association, which assists small and medium-scale enterprises in this niche.
The absence of capital gains tax and a flat corporate tax rate of 17% on chargeable income are significant draws for crypto entrepreneurs.
With almost 19 registered companies, Singapore dominates Southeast Asia’s crypto business space. The country allocated a significant grant of $8.9 million for the research and development of blockchain technology in Southeast Asia.
5. USA
- G20 Nation – No
- Regulatory Framework: Securities and Exchange Commission (SEC), Financial Crimes Enforcement Network (FinCEN)
- Clarity of Laws: Mixed clarity, varies by state
- Capital Gains Tax: Varies by state (mostly 0%)
- Corporate Tax: 21%
- Registered Crypto Companies: 474+
- Crypto Business Friendly Total Score: 71/100
Crypto is widely accepted in the USA. Over 5000 businesses in different niches accept cryptocurrency as payment in the country.
From this, it’s clear that crypto is a substantial industry in this G20 nation. However, the clarity of laws varies by state, creating a mixed regulatory environment.
The USA has a considerable crypto sector, with many states enacting pro-crypto laws. For instance, Colorado offers a sandbox program for blockchain businesses to test new products and services.
Taxation is also lenient for crypto firms in the USA.
Currently, the country doesn’t levy any capital gain tax on cryptos. The corporate income tax rate stands at 21%, and the license fees can be substantial, exemplified by the government fee of $176,226.
In the end, the USA continues to be a major player with over 474 registered crypto companies, fueled by its expansive market and innovative spirit.
6. Estonia
- G20 Nation – No
- Regulatory Framework: Financial Supervisory Authority (EFSA)
- Clarity of Laws: Clear and supportive
- Capital Gains Tax: 20%
- Corporate Tax: 20%
- Registered Crypto Companies: 1,200+
- Crypto Business Friendly Total Score: 69.5/100
Estonia established strict AML (Anti-Money Laundering) and Terrorist Financing Prevention Act regulations between 2021 and 2022, significantly impacting its crypto service provider market.
These laws led to many companies withdrawing from seeking licenses, and the regulatory entity Financial Intelligence Unit (FIU) also revoked almost 482 crypto businesses‘ licenses in 2022.
Currently, only 100 crypto companies have a license to operate in Estonia. Despite these stringent regulations, favorable tax conditions remain attractive to crypto corporations. Estonia does not have a capital gains tax but imposes a 20% withheld income tax.
7. Italy
- G20 Nation – Yes
- Regulatory Framework: Ministry of Economy and Finance (MEF), Italian Securities and Exchange Commission (CONSOB)
- Clarity of Laws: Clear but evolving
- Capital Gains Tax: 26%
- Corporate Tax: 24%
- Registered Crypto Companies: 73+
- Crypto Business Friendly Total Score: 68/100
For a long time, Italy welcomed crypto companies without any regulation barriers. However, it has recently tightened its rules and regulations concerning crypto business entities.
The introduction of the EU’s MiCA (Markets in Crypto-Assets Regulation) framework has influenced the country’s approach to regulating crypto service providers.
Even after that, 73 approved crypto service players are still active within the country.
Though higher than some countries mentioned, the tax rates are relatively low compared to others like Australia or Japan. Italy imposes a 26% capital gains tax and a 24% corporate income tax.
8. Russia
- G20 Nation – Yes
- Regulatory Framework: Central Bank of Russia (CBR)
- Clarity of Laws: Clear but restrictive
- Capital Gains Tax: No capital gains tax
- Corporate Tax: 20%
- Registered Crypto Companies: 70+
- Crypto Business Friendly Total Score: 67/100
Russia, one of the world’s superpowers, attracts crypto companies with its favorable tax policies.
There is no capital gains tax, and the corporate income tax is flat at 20%. The country acknowledges crypto as a legal currency, with over 500 businesses across various industries accepting it as payment.
This accelerates transaction processes and ensures payment data security. Most importantly, it simplifies operations for crypto companies within the market.
- G20 Nation – Yes
- Regulatory Framework: BaFin (Federal Financial Supervisory Authority)
- Clarity of Laws: Clear and supportive for licensed businesses
- Capital Gains Tax: 25%
- Corporate Tax: 15%-30%
- Registered Crypto Companies: 300+
- Crypto Business Friendly Total Score: 66.5/100
Germany was one of the first countries to recognize the potential of blockchain technology, using it for digital transformations.
The German Savings Banks Association, a network of 400 savings banks, even developed fintech blockchain applications to facilitate cryptocurrency transactions.
Germany has a favorable stance toward cryptocurrencies and extends this support to crypto businesses.
There is no long-term capital gains tax on crypto income for individuals or corporations, though a short-term capital gains tax ranges from 0% to 45%, depending on the gains. Corporations must also pay an income tax of 15%.
Despite the higher tax rates, Germany’s transparent and well-established rules regarding crypto make it an attractive location for crypto businesses.
The country acknowledges crypto as a legal currency, with over 700 businesses accepting it as payment, enhancing business ease.
10. Brazil
- G20 Nation – Yes
- Regulatory Framework: Central Bank of Brazil
- Clarity of Laws: Developing clarity
- Capital Gains Tax: 15.0% – 22.5%
- Corporate Tax: 0% – 27.5%
- Registered Crypto Companies: 19+
- Crypto Business Friendly Total Score: 66.5/100
Brazil is still developing its grounds in the crypto world. Crypto service providers must register with the Central Bank of Brazil to operate in Brazil.
In 2022, Brazil created a framework for the crypto sector and designated the Central Bank as the overseeing body. However, the laws and regulations are not yet firmly established, which makes it a less restrictive environment for companies.
However, Brazil’s tax rates make it a less favorable option for businesses. The country imposes a high corporate income tax of up to 25% and a short-term capital gains tax ranging from 15% to 22.5%.
Conclusion
The crypto industry is profitable and increasingly acknowledged by many countries as the future of digital investments.
To join this crypto wave, countries are developing laws and regulations that support crypto businesses while protecting their citizens’ interests.
G20 countries lead in creating crypto-supportive regulations, but even countries that aren’t G20 members are not far behind, offering intense competition.
Source Link