Crypto friendly countries in 2021

If you’re a business owner who plans to move to another country and acquire residency through investments, you might want to try your hand at cryptocurrencies. These digital assets are among the innovations today that gain mainstream adoption for competitive businesses.

But what are cryptocurrencies?

Cryptocurrencies are virtual money that has value, but they only exist in digital form. Another thing that makes them different from flat currencies is that they are decentralized, which means there is no central authority. Because they are based on the blockchain principle, they are very safe to use and there is no way to counterfeit.

What cryptocurrencies are there?

The exact number of cryptocurrencies is not known, but it is estimated that there are more than a thousand, and new ones are still emerging. Even if you don’t know much about digital money, you’ve probably heard of one currency. Bitcoin was created by a group of people under the pseudonym Satoshi Nakamoto 13 years ago. At the very beginning, this currency was worthless and amounted to only 0.03 dollars.

In that period, it was considered that it would be successful if it equaled the US dollar and that it would then reach its maximum. After more than 10 years, we are witnessing that bitcoin has long exceeded the value of the dollar and is currently more than $ 60,000! Although other currencies do not have nearly this value, they have gained their audience. Ethereum, Litecoin, Bitcoin Cash, Ripple, Altcoin, and many others are common choices for beginners.

Cryptocurrencies for Investment-Related Migration

If you’re thinking about moving to a different country, there are a lot of things to consider: housing and other living arrangements, education, culture, visas, healthcare services, language barriers, cost of living, banking and currencies, rules and regulations, and working or business conditions.

If you’re a cryptocurrency holder, you probably won’t have a problem bringing your crypto funds with you. This is because of the decentralized nature of these digital assets. They aren’t issued by any government or higher authorities and work solely on their networks independently.

Other benefits of using cryptocurrencies include:

• Accessibility - They’re operating via technology, which means you can easily access your crypto as long as you have a stable Internet connection. Their adoption rate is also rising, so you can use it in thousands of merchants across the world.

• Low transaction costs - Cryptocurrencies facilitate direct payments, which cuts the cost for third-party services.

• Instant payments - Crypto transactions can be completed almost instantaneously—no need to pay the bank a visit since funds can be sent directly to and from your digital wallet.

• Reduced fraud risks - Bitcoin, for example, has a robust and very complex technology that can be extremely difficult to compromise. Also, the network of cryptocurrencies like BTC is transparent, meaning everyone on the network can view the BTC fund’s whereabouts. This gives users a sense of security and accountability.

Crypto-Friendly Countries and Their Importance to Immigrant Investors

1. Vanuatu

If you fancy living on an island, you can try Vanuatu—an island country located in the South Pacific Ocean. It’s considered the first and only country that accepts BTC payments in exchange for citizenship and offers one of the fastest investment migration programs in the world.

In terms of crypto regulation in the country, Vanuatu’s government has confirmed that crypto holders can grab citizenship by investing in BTC. What makes it more ideal for crypto immigrant investors is that the government offers investors a Vanuatu passport, valid for five years.

2. Portugal

Another crypto-friendly country you might want to consider is Portugal, where personal or individual crypto trades are exempt from VAT and there are no capital gains and income taxes.

On the flip side, these tax exemptions don’t apply to cryptocurrency exchanges, crypto or blockchain start-ups, crypto hedge funds, and other businesses that involve crypto-related activities. Such businesses will be charged with a usual rate of 21% on their income.

If you want to fly to Portugal and experience its tax treatment for individual crypto trading, you must make a qualifying investment like a piece of real estate worth 500,000 euros. If you’re looking for a slightly cheaper option, you can try looking for one worth 350,000 euros in urban areas.

3. Malta

Malta is one of the most crypto-friendly countries in the world. If you’re looking to invest in BTC, explore offers in Malta. Day traders are required to pay a 35% business income tax. On the other hand, all crypto-related transactions that aren’t part of trading are excluded from taxes. If you’re looking to move and bring your crypto adventure to Malta, you can apply to the Malta Citizenship by Investment Program.

4. Singapore

This high-ranking country in terms of political stability is among the few jurisdictions that support the zero capital gains policy on cryptocurrency income. The Monetary Authority of Singapore also allows some cryptocurrency companies to operate without a license, within a grace period of six months. This is granted under the latest Payment Services Act.

The country’s regulatory body also initiated some crypto-friendly efforts, like the publication of initial coin offering (ICO) guidelines in 2017. What makes Singapore even more attractive to crypto users and investors is that you can spend your BTC and other cryptocurrencies in various merchants in the country.

5. Argentina

Argentina is the name of a leading crypto-friendly nation within South America. With Buenos Aires being its capital city, Argentina is home to 20 bitcoin ATMs, 130 Bitcoin merchants, and an immensely huge number of Bitcoin traders within the world. The small-populated nation has made its way to the top 5 bitcoin-friendly countries in the world as one of the stalwarts of crypto trading worldwide.

Other Popular Crypto-Friendly Countries

Australia (Brisbane), the US (California), New Zealand, Liechtenstein and Estonia and Sweden are also among the most welcoming countries in terms of holding and using cryptocurrencies. Like the countries we mentioned earlier, their treatment of digital assets varies depending on their financial regulations and procedures.

Remember, we’re living in a digital world and the way we approach and use money is constantly changing. So if you’re thinking of moving to a foreign land where you can utilize your cryptos for business opportunities, it would be better to go to a country with a positive approach to such advancements and developing technologies.