10 Countries That Are Friendly to Bitcoin and Crypto Investment
Crypto Investment – As the popularity and value of digital currencies like Bitcoin continue to rise, many countries have started developing strategies to regulate and embrace this technology within their financial systems.
From merely an investment instrument to a legitimate means of payment, crypto has transformed the global perspective on currencies and digital assets, prompting many to explore the best ways to invest in crypto.
However, not all countries take the same stance. Some outright reject it due to a lack of understanding about what crypto investment is, while others welcome it with open arms to drive innovation and attract investment.
Summary Key Takeaways
Show10 Crypto-Investment Friendly Countries
The rapid growth of Bitcoin has prompted many countries to recognize and regulate its use within their financial systems as they begin to understand that crypto investment is a modern way to generate wealth.
Here are ten countries that have legalized Bitcoin and crypto investments and established regulatory frameworks for their use, as cited by Coinvestasi.
1. United States and Crypto Investment for Beginners
The U.S. Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN), has classified Bitcoin as a convertible currency with value equivalent to fiat since 2013.
However, while Bitcoin is not recognized as legal tender, it is supported as a way to invest in crypto for beginners.
Entities that manage or exchange Bitcoin, such as crypto exchanges and payment processors, are categorized as money services businesses (MSBs) and are required to register with the Treasury Department and report transactions over US$10,000.
2. Japan
In April 2017, Japan passed the Payment Services Act, requiring cryptocurrency exchanges to register and comply with requirements such as record-keeping, security measures, and user protection in accordance with anti-money laundering regulations.
Although cryptocurrencies are recognized for their purchasing power, they are not considered legal tender since they are not issued by a central bank, even though many citizens are interested in crypto investment.
3. South Korea and Crypto Investment
Since March 2021, South Korea has enforced a March 2020 amendment to the Act on Reporting and Use of Specific Financial Transaction Information, legalizing cryptocurrency and establishing a regulatory framework for virtual asset service providers.
Requirements for crypto investment service providers for beginners include opening official bank accounts, obtaining Information Security Management System (ISMS) certification, and implementing Anti-Money Laundering/Know Your Customer (AML-KYC) procedures.
4. Canada and Crypto Investment for Beginners
The Canada Revenue Agency (CRA) considers Bitcoin a commodity for income tax purposes due to the growing interest in digital assets by the public after understanding what crypto investment is.
Profits from Bitcoin transactions are treated as business income or capital gains and must be reported accordingly in line with real crypto investment practices.
Crypto exchanges are categorized as money services businesses and are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, requiring them to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and comply with related regulations.
5. Australia
The Australian Tax Office treats Bitcoin as an asset subject to capital gains tax upon certain events, such as trading, selling, or using Bitcoin for purchases.
Individuals who hold Bitcoin for personal use may be exempt from taxes, as their activity only involves personal crypto investment practices.
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6. Germany and Crypto Investment
In August 2013, the German Ministry of Finance classified Bitcoin as “private money” that can be used as a means of payment in multilateral transactions, after most of the population began to understand that crypto investment is modern finance.
Bitcoin investments are treated similarly to other assets like gold; sales are tax-free if held for at least one year. If sold in under a year, a flat tax of 25% applies, with an exemption for gains up to €600.
7. Malta and Crypto Investment for Beginners
Malta is known as one of the most crypto-friendly countries because it is tech-savvy and familiar with how crypto investment works.
The country gained attention when Binance, one of the largest crypto exchanges, announced it would open its headquarters in Malta in March 2018.
8. El Salvador
The next crypto-friendly country is El Salvador, which made history as the first nation to adopt Bitcoin as legal tender on September 7, 2021.
This move made Bitcoin an official currency alongside the U.S. dollar, with the aim of improving financial inclusion and facilitating remittances.
9. Ukraine
In February 2022, Ukraine’s parliament passed a law legalizing and regulating crypto investment and various digital currencies, including Bitcoin.
Although Bitcoin is not yet recognized as legal tender, the law provides a legal framework for crypto-related activities and legal protection for digital asset holders.
10. Singapore and Crypto Investment for Beginners
The Monetary Authority of Singapore (MAS) regulates cryptocurrencies under the Payment Services Act, which took effect in January 2020.
Exchanges and digital payment service providers are required to register and comply with anti-money laundering and counter-terrorism financing regulations.
Singapore is known as a financial hub that embraces technological innovation, including current crypto investment practices.
Conclusion: The Future of Crypto Investment in the Eyes of the World
From the Americas to Asia, more and more countries are beginning to realize that crypto investment is a pathway to modern finance, both as an investment tool and as part of the future financial system.
While the approaches vary—some, like El Salvador, fully embrace it, while others, like Australia, offer limited recognition—they all show that Bitcoin and other digital assets can no longer be ignored.
Legalization, regulation, and oversight efforts by these countries serve as positive signals for investors and crypto industry players who already understand what crypto investment entails.
In a supportive and clearly regulated environment, innovation can thrive more rapidly, and public trust in the crypto ecosystem can grow stronger.
Moving forward, countries that adapt to crypto investment are poised to become global digital economy leaders.
Frequently Asked Questions (FAQs)
What is crypto investment and why is it gaining global attention?
Crypto investment involves buying and holding digital assets like Bitcoin as a means to generate wealth or diversify a portfolio. It’s gaining traction worldwide due to its high growth potential, decentralized nature, and increasing adoption in financial systems.
Which countries are considered crypto-friendly and why?
Countries like the United States, Japan, South Korea, Canada, and Germany are considered crypto-friendly because they have established legal frameworks that regulate, tax, and support cryptocurrency usage, making it safer and more accessible for investors.
Is Bitcoin recognized as legal tender in any country?
Yes, El Salvador is currently the only country that has officially adopted Bitcoin as legal tender, allowing it to be used for all forms of transactions alongside the U.S. dollar.
