It’s time to find out in which state crypto enthusiasts will be welcome. We present the TOP 5 Countries open from a legal point of view and tax policy that promotes blockchain and the development of the crypt.
Ljubljana has one of the world’s largest crypto trading centers-BTC city. There are more than 100 shops in the shopping center, where you can buy food, drinks, things, household appliances, sports goods, tourist travel, and pay for a taxi for cryptocurrency.
Slovenia began to position itself as friendly to the crypt since 2017. Prime Minister Miro Cerar personally encouraged crypto startups and the use of blockchain in various fields. In October 2018, Slovenia initiated the creation of a European blockchain hub.
What about taxes?
Cryptocurrency is classified as a virtual currency, so Slovenia does not tax it.
Great opportunities in a small country
Tiny Gibraltar, located in the South of the Iberian Peninsula, has attracted crypto enthusiasts with a regulatory framework, in particular by granting a formal license to crypto companies. Further, the country became the first financial body in Europe to develop rules governing the activities of ICO.
The Gibraltar stock exchange also announced BitcoinETI, a bitcoin-based exchange-traded instrument. This was made possible by the fact that the Gibraltar Financial Services Commission (GFSC) fully supports cryptocurrency.
Local authorities continue to pay attention to the creation of legislation that will ensure strict supervision, protection of investors, and customers.
A trade association and a working group have been established to support the industry. The Gibraltar new technology association promotes relationships between cryptographic companies and authorities, while new technologies in education and nhà cái số một aim to meet the growing demand for crypto and blockchain skills by organizing courses to train employees and industry professionals.
Gibraltar has established itself as a low-tax state. Crypto exchanges are subject to a 10% corporate income tax rate. There are no capital gains tax or dividend on cryptocurrencies.
Customers, assets, and pop the crypt
Cryptography has already become an integral part of our lives and is closely intertwined with various industries, such as sports. But Japan went even further. In the land of the rising sun, the Virtual Currency Girls pop group appeared. In their songs, the girls warn against falling into the clutches of crypto-scammers and urge people to monitor their cybersecurity carefully. Each of the eight group members represents a different cryptocurrency such as BTC, BCH, ETH, and XRP, etc.
According to the income tax law, the profit received as a result of crypto-sales is considered to be a different type of income and not a capital gain. Currently, the financial supervision authority of Japan is developing a tax reform that will allow for crypto-operations.
The Crypto Valley project is in the Canton of Zug in Central Switzerland. It is an independent but government-backed association. The goal is the development of the blockchain and crypto-technology ecosystem.
The headquarters of several dozen companies and startups, including ShapeShift, Bancor, and ConsenSys, are already located in the Crypto Valley. Zug became the first in the world to approve payment of local taxes in BTC back in 2016.
The Swiss financial market surveillance authority (FINMA) has set up a framework to regulate ICOS, intending to help local startups launch ICOS that comply with Swiss law. The structure explains how blockchain technology companies comply with KYC (Know Your Customer) and AML (Anti – Money laundering) laws, which will accelerate the growth of DLT (Distributed Ledger Technology – blockchain Parent) platforms in the region.
In March 2019, the Federal Assembly approved a proposal directing the Federal Council to regulate cryptocurrency. This will contribute to addressing corruption, extortion, and fraudulent crypto activity, as well as adapting existing legislation to include and account for cryptocurrency and its associated risks.
In Switzerland, cryptocurrency is defined as “virtual currency,” and is subject to property taxes. Income tax is applied to cryptography received as wages and as to the crypt received as a result of mining profits. ICOS are treated as securities.
Perhaps the main crypto state of the planet is Malta. Back in April 2018, the country’s Economy Minister announced that Malta aspires to be known worldwide as a “Blockchain Island.” Friendliness led to the fact that the largest crypto-exchange Binance moved its headquarters to the island state in the spring of 2018.
The established MDIA provides a comprehensive regulatory framework for the crypto business and seeks to certify blockchain platforms and improve verification processes for crypto platform users.
In the near future, MDIA will become a government body in Malta responsible for developing further cryptographic policies, cooperating with other countries and organizations, and enforcing ethical industry standards.
Malta hosts one of the largest and most significant annual crypto events in the world – AI & Blockchain Summit. The purpose of the event is to gather the most influential crypto-speakers, enthusiasts, potential investors, and the largest international blockchain companies to discuss the latest events and news of the industry, with the proposal of plans for development.
Malta does not have tax laws governing cryptography as a medium of exchange and operations to exchange Fiat money for cryptocurrency. Therefore, the crypt is not subject to VAT. For this reason, a lot of people call Malta a real crypto-haven.
Five of the above States have shown that blockchain and cryptography technologies are able to benefit society in an environment where they are given the opportunity to develop and thrive. Already now, we can safely say that these five countries are marked in history as virtues who opened the doors to the technologies of the future.