Top 10 Crypto-Friendly Countries in 2024

A “crypto-friendly” country fosters an environment where blockchain technology and cryptocurrencies thrive through clear regulations, tax benefits, and financial integration. These countries matter to investors and businesses by providing legal clarity, reducing tax burdens, and encouraging innovation. In 2024, global crypto adoption has surged, with more nations embracing blockchain for financial inclusion and economic growth, making it crucial to identify the best destinations for crypto opportunities.

What Makes a Country Crypto-Friendly?

A crypto-friendly country is one that has the ability to create an environment where blockchain and crypto businesses, investors, and enthusiasts can thrive. It offers regulatory clarity, favorable tax policies, decent financial infrastructure, and community support. Such countries have crypto-friendly banking systems so that the integration of digital and fiat currencies is seamless. These countries also have strong adoption rates, ownership, and institutional support for crypto projects. Last but not least, such countries have dedicated zones or cities that promote blockchain research and entrepreneurship. 

What’s in it for you? Operating or investing in a crypto-friendly country offers major advantages for both individuals and businesses. In a nutshell: 

• Tax Efficiency:
  • Many crypto-friendly nations, such as Portugal and Switzerland, offer zero or low taxation on long-term cryptocurrency gains, reducing financial burdens.
  • Jurisdictions like Singapore, which imposes no capital gains tax, make it appealing for traders and investors.
• Regulatory Stability:
  • Countries with clear rules around crypto transactions, taxation, and compliance provide legal certainty.
  • For instance, Switzerland’s comprehensive DLT Act ensures that blockchain companies can innovate within a secure legal framework.
• Access to Financial Services:
  • Crypto-friendly banks and financial institutions simplify everyday operations, from opening accounts to securing loans against digital assets.
  • In the UAE, banks like Emirates NBD offer tailored services for crypto businesses, bridging traditional finance with blockchain technology.
• Community and Ecosystem Support:
  • High adoption rates and government-led initiatives foster growth. For example, El Salvador’s adoption of Bitcoin as a legal tender created a national dialogue around crypto use.
  • Blockchain research institutions and innovation centers in Germany and Estonia contribute to skilled workforce development.
• Global Connectivity:
  • Many crypto-friendly countries serve as gateways to regional and global markets. Hong Kong connects blockchain innovators with mainland China, while Malta and Estonia provide access to the European Union.
• Regulatory Framework
  • A clear regulatory framework provides the foundation for a thriving crypto ecosystem. Governments that embrace blockchain often enact legislation to define cryptocurrencies, establish licensing for Virtual Asset Service Providers (VASPs), and address concerns around anti-money laundering (AML) and counter-terrorism financing (CTF).

Top 10 Crypto-Friendly Countries in 2024

Switzerland

Switzerland consistently ranks as the most crypto-friendly nation globally. Its Financial Market Supervisory Authority (FINMA) leads the charge with transparent guidelines. FINMA mandates the segregation of staked crypto assets, protecting investors even in cases of bankruptcy. The Swiss approach favors regular supervision of crypto banks over exchanges, ensuring stability while facilitating innovation. The Federal Act on the Adaptation of Federal Law to Developments in Distributed Ledger Technology (DLT) sets Switzerland apart in terms of legal certainty. 

Switzerland offers one of the most favorable tax regimes for crypto investors and businesses. There is no capital gains tax for individuals who make long-term investments. Crypto firms are taxed, though, as per standard corporate income, which varies by canton but is competitive on a global scale. In Zug, known as “Crypto Valley,” individuals and businesses can pay taxes using Bitcoin and Ether. More than 1,000 blockchain companies are centered in Zug, including the Ethereum Foundation and Cardano. Other cities such as Lugano also accept payments in Bitcoin and Tether. 

Switzerland leads the world in integrating traditional and crypto finance. It has several crypto banks, including Bitcoin Suisse, Sygnum, and SEBA Bank; all of which provide custody, trading, and tokenization services while being compliant with FINMAN. The Swiss National Bank (SNB) has piloted a central bank digital currency (CBDC) for wholesale transactions. 

The Swiss also do a good job in terms of renewable energy use when it comes to sustainable Bitcoin mining and blockchain applications. All such factors have made Switzerland the most crypto-friendly country of the year. 

Singapore

Singapore’s regulatory framework is perceived as a very balanced and “forward-thinking” one. It is governed by the Monetary Authority of Singapore (MAS), which has done a decent job in terms of consumer protection. Earlier this year, MAS introduced a broader licensing regime covering more digital asset services. Singapore has also established clear guidelines for stablecoins. 

Because of good institutions and regulatory approaches, Singapore has attracted large crypto firms such as Binance and Crypto.com over the years, though Binance later exited due to stricter compliance requirements. Still, it remains one of the most exchange-dense nations globally. Crypto banks such as Sygnum and Swissborg operate in Singapore, and there are other major players, such as the DBS Bank. 

When it comes to taxation, there are no capital gains for long-term investments, similar to Switzerland. However, there is a 17% tax rate for corporations. The government does a good job of incentivizing blockchain and crypto-focused startups engaging in R&D so that they benefit from tax rebates. 

Singapore has one of the highest crypto-ownership rates globally, and thousands of blockchain-related jobs have been reported over the years. However, there is a reported lack of Bitcoin ATMs in Singapore, but there are many online payment systems integrated. Last but not least, as one of the most sustainable countries in the world, Singapore does an incredible job in terms of leveraging its tech-centric approach to integrate blockchain into sustainable practices. 

Germany

Germany is recognized as one of the most crypto-friendly countries, despite its government selling BTC earlier this year. The Federal Financial Supervisory Authority (BaFin) oversees the regulation of crypto activities, while BaFin mandates that crypto custodians obtain licenses, making Germany one of the few countries to formally regulate crypto custody. As an EU member, Germany aligns its regulations with the Markets in Crypto-Assets (MiCA) framework.

Similar to Singapore and Switzerland, cryptocurrencies held for long term (more than a year) are entirely tax-free for individual investors. Short-term crypto trades are tax-exempt if annual profits are under €600. This tax policy incentivizes holding rather than frequent trading. 

The country has 6 licensed crypto banks, including established players like Nuri and Solarisbank, providing services like trading, custody, and crypto-backed loans. German law allows special investment funds to allocate up to 20% of their assets to cryptocurrencies. BaFin-approved crypto custody solutions and tokenized securities make Germany a leader in crypto financial services.

Germany has a vibrant crypto community, with a relatively high level of adoption and blockchain education initiatives. Reports show that one in three Germans see crypto as part of the future of finance. Additionally, Germany offers quite an accessible infrastructure for crypto transactions, including ATMs. There have been a lot of projects in Germany focusing on real-world asset tokenization (RWAs) and integrating blockchain into traditional sectors. However, Germany can do a better job in terms of attracting more exchanges in the country. After all, Frankfurt is one of the leading finance cities in the world, so it is second nature to think of Germany as a crypto hub in the future. 

Portugal

Portugal has carved a niche as a crypto-friendly haven in Europe. Portugal does not impose specific licensing requirements for crypto activities, making it a business-friendly environment for startups and individual investors. While lacking specific regulations for Virtual Asset Service Providers (VASPs), Portugal supports innovation by fostering an open regulatory ecosystem. As a member of the European Union, Portugal aligns with broader EU crypto regulations, including MiCA, which provides added clarity for future operations.

For individual investors, profits from holding cryptocurrencies for more than 365 days are entirely tax-free, provided crypto is not the primary source of income. Gains from assets held for less than a year are taxed at a flat rate of 28% but no VAT. Hence, Portugal’s crypto tax approach is one of the most favorable in the world.

While Portugal does not yet have dedicated crypto banks, local financial institutions have begun engaging with crypto businesses to provide basic banking services. Banks and platforms in Portugal are increasingly open to integrating crypto-based financial products, including wallets, investment funds, and payment solutions.

There are regular blockchain meetups happening in Portugal, and a significant amount of the population owns cryptocurrencies. More importantly, Portugal has become a hub for crypto expats and nomads because of its beautiful cities and crypto environment, with Lisbon becoming a key hub. Portugal also has the Digital Transitional Action Plan to help integrate blockchain into public services. Portugal could go higher on the list if adoption rates scale even more.

El Salvador

El Salvador made history in 2021 by becoming the first country to adopt Bitcoin as legal tender. Bitcoin holds the same status as the US dollar, enabling its use for goods, services, and debt settlement. 

Plenty of VASPs operate in El Salvador, securing their licenses from the National Digital Assets Commission (CNAD). The government offers incentives, such as residency programs and tax breaks, for crypto entrepreneurs and firms.

Bitcoin-related earnings, including gains from trading and investments, are entirely tax-free, fostering an attractive environment for crypto investors. Companies operating under the cryptocurrency framework benefit from exemptions on income, capital gains, and other associated taxes. Transactions and conversions between Bitcoin and the US dollar incur no additional taxes.

El Salvador’s banking ecosystem is adapting to its Bitcoin-first strategy. A government-backed digital wallet allows citizens and businesses to store, send, and receive Bitcoin without fees. The country has two operational crypto banks, supporting crypto custody, lending, and other financial services. The government also introduced Bitcoin Bonds to raise funds for national development projects through Bitcoin-backed bonds. 

Having a cryptocurrency as your legal tender does wonders in population adoption, and Bitcoin acceptance in the country keeps increasing. Hundreds of crypto businesses now operate in El Salvador, not just for the favorable environment, but also because of the publicity that the country has received since embarking on Bitcoin. 

El Salvador has launched geothermal-powered Bitcoin mining projects to provide sustainable solutions via its volcanic resources. It is also safe to say that there are plenty of accessible payment solutions, ATMs, and much more in El Salvador. The government is also trying to adopt Bitcoin in rural and underserved communities to show that it can be used as a tool for financial inclusion. 

Still, there’s still skepticism regarding the whole El Salvador saga, with further development needed to support the widespread usage of Bitcoin. There has been tons of criticism by the likes of the IMF, but El Salvador continues its bold and potentially lucrative stance on Bitcoin and crypto. 

United States

The approval of Bitcoin and Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) was perhaps one of the biggest news since Bitcoin’s inception. Federal guidance still remains uneven in the states, but the likes of Wyoming, Texas, and Florida have become quite friendly. The SEC regulates cryptocurrencies as securities, while the Commodity Futures Trading Commission (CFTC) oversees them as commodities, leading to regulatory overlaps. The U.S. has introduced banking charters for crypto banks, allowing them to operate as financial intermediaries. Banks such as Silvergate and Anchorage Digital hold federal charters. Ongoing legislative efforts seek to regulate stablecoin issuers, ensuring reserve transparency and minimizing systemic risks.

Crypto gains are taxed based on the holding period:

• Short-Term Gains: Taxed as ordinary income, ranging from 10% to 37%.
• Long-Term Gains: Taxed at lower rates of 0%, 15%, or 20%, depending on income levels.

Crypto-to-crypto transactions are treated as taxable events, requiring accurate record-keeping. Mining and staking income is also subject to income tax. But there are state-level tax variations, with some (i.e. New York) imposing stricter tax rules. 

Plenty of crypto banks operate in the states. ETFs, futures, and crypto-backed loans are readily available through mainstream financial institutions like Grayscale, Fidelity, Blackrock, etc. The likes of PayPal and Venmo also support crypto transactions, making crypto very accessible to retail. 

Quite a chunk of the population owns crypto in the US, and crypto exchange traffic and interest are some of the highest in the world. Additionally, the US is also leading in Bitcoin mining, and there are tens of thousands of crypto-related ventures, crypto-based payment providers, and billions of dollars worth of crypto activity. Hence, in tandem with ETFs and despite the regulatory uncertainty (including the anti-crypto rhetoric among some lawmakers), the US remains one of the most crypto-friendly countries in the world in both relative and absolute terms. 

United Arab Emirates (UAE)

The UAE has also made a name for itself in the crypto sector, and not just for the lifestyle that crypto people based there embody. The Virtual Asset Regulatory Authority (VARA) is the regulatory body along with the Abu Dhabi Global Market (ADGM). The forward-looking laws of the UAE have done an amazing job of creating a blockchain environment that protects investors. Dubai has introduced new rules for crypto advertising and custody services, ensuring better market transparency and consumer safeguards.

There is no tax on capital gains for individuals or businesses involved in cryptocurrency trading or investments. Crypto businesses operating in free zones like DMCC Crypto Centre are exempt from corporate taxes. The UAE does not levy Value-Added Tax (VAT) on cryptocurrency transactions, adding to its appeal. Moreover, the government offers tax incentives for crypto investors holding assets for over a year.

Many banks such as the Emirates NBD and Dubai Islamic Bank offer accounts and services to crypto businesses. Plenty of VASPs have registered as well, recognizing the UAE as an emerging country in VASP licenses for 2024. 

The UAE has one of the highest, if not the highest, crypto ownership globally, with a reported quarter of the population engaging in crypto-based activities. The UAE has also become a meeting point for millions in this industry from initiatives like the Future Blockchain Summit. 

Many exchanges such as Binance and Bybit have offices there, and a lot of crypto centers/hubs have been created to support blockchain companies as the UAE transitions to digitalization. 

However, it is worth noting that not all banks are crypto-friendly, and there could be high costs associated with setting up a crypto-based business there. 

Estonia

Estonia is making a name for itself in Europe as one of the best environments for blockchain and crypto innovation. They have established decent guidelines for VASPs and compliance, but there are higher capital requirements for new businesses. 

In terms of taxation, there is a flat 20% for corporate income tax, and individual income is also taxed accordingly. There are certain tax treaties for some entities. Overall, it is a tax-friendly structure.

Banks like LHV Bank and TBB Bank are crypto-friendly and offer support for crypto transactions. There are also blockchain payment systems for businesses, and Estonia has done amazingly in terms of attracting more businesses, with 46 registering in 2024 alone. 

The key thing for Estonia is that the Estonian government uses blockchain for its e-governance services, showcasing the blockchain-friendly approach that they have. Some educational institutions have also added blockchain studies to create a skilled workforce for the sector. 

Malta

Many refer to Malta as the Blockchain Island, with the name accurately reflecting the island’s stance on crypto. Malta has become one of the leaders in terms of providing a stable and supportive regulatory framework. The government has created several policies to establish a compliant, transparent, and innovative environment for Web3 businesses. 

Similar to some other crypto-friendly countries, there are no capital gains tax for long-term gains, incentivizing users to hold their investments. The corporate tax rate is 35\% but can be lower under some conditions. Also worth noting, non-residents can avoid local taxation on income sourced outside of Malta/ 

Some banks in Malta provide crypto-related services, and several companies have registered on the island over the years. The government also actively promotes blockchain adoption, which has led to crypto ownership to increase in the island. Because of such an environment, companies such as Binance and OKX have offices there.

It is these factors, such as a clear legal framework and a forward-thinking approach toward blockchain that has made Malta live up to its name as the Blockchain Island. 

Australia

While it may not compare to some of its counterparts, Australia has also done well in terms of its crypto stance throughout 2024. The nation has provided clear guidelines for the registration and regulation of VASPs, taxation of cryptocurrencies, and consumer protection laws. 

Profits from cryptocurrency transactions are subject to CGT. However, crypto used for personal purchases under AUD 10,000 is exempt from tax. Cryptocurrency mining and staking rewards are treated as income and are taxed accordingly, depending on the taxpayer’s activity and intent.

Banks like ING and St. George Bank are known for their crypto-friendly policies. NAB’s UBank offers flexible banking solutions for crypto users, and startups are also innovating in this space. Hence, crypto is pretty accessible there as well.

Crypto is increasingly becoming more popular in Australia, with cities like Sydney and Melbourne becoming meeting points for key shareholders of the industry. Companies in various sectors, including healthcare, logistics, and supply chain management, are adopting blockchain solutions. Some businesses have raised concerns about the cost and complexity of compliance with AUSTRAC and ASIC regulations. Nonetheless, Australia has earned its position as one of the top 10 crypto-friendly countries of 2024.

Emerging Crypto-Friendly Nations to Watch

Hong Kong

Hong Kong has re-emerged as a global leader in the crypto and blockchain space. The SFC introduced a mandatory licensing regime for VASPs to ensure compliance with anti-money laundering and combating the financing of terrorism standards. Earlier this year, Hong Kong also announced plans to regulate stablecoins to enhance their security and reliability.

In terms of taxes, crypto trading and investment profits are not subject to capital gains. But businesses have to pay a corporate tax rate of 16.5%. Overall, there are plenty of tax advantages in Hong Kong.

Banks such as HSBC and Standard Chartered have started providing banking services to crypto companies. Similar to the US, Hong Kong is also offering Bitcoin and Ethereum ETFs and gives easy access to institutional investors. 

Overall, a good segment of the population reports owning cryptocurrencies, and Hong Kong has become a blockchain hub due to the policies formed and initiatives organized to promote crypto. Exchanges like the OKX operate there, and crypto overall is pretty accessible. 

Kazakhstan

Kazakhstan is also gaining recognition as an emerging hub for crypto. The Astana Financial Services Authority (AFSA) has provided a clear framework for crypto regulation for both businesses and individuals. The government has also introduced policies to integrate blockchain technology into its public and financial systems.

Crypto businesses registered in the AIFC are exempt from corporate taxes until 2066. Crypto miners benefit from low electricity costs and favorable taxation. Personal crypto gains are not subject to capital gains tax, making the country attractive for individual investors.

Local banks are starting to offer limited services for crypto businesses, focusing on compliance with AFSA’s regulations. Some also provide specialized services catering to those involved with crypto mining operations. Needless to say, Kazakhstan contributes more than 3% of the global Bitcoin hash rate, making it one of the top Bitcoin mining countries. The government is leveraging renewable energy sources to support sustainable mining practices. Overall, Kazakhstan is pretty crypto-friendly. 

Panama

Panama has introduced legislation aimed at regulating crypto and maintains a relatively lenient stance, meaning that the regulatory approach is rather passive. Nonetheless, this has allowed the sector to grow organically and gradually. Some of the largest banks in the nation are now transitioning to “Bitcoin-friendly.” 

There are no capital gains taxes for crypto income, but there are taxes at the corporate level. Still, fiscal policy has attracted many professionals in this industry into the country. 

There is a growing usage and adoption rate of crypto for everyday use in Panama, and more businesses are starting to accept Bitcoin and Ethereum payments. There have also been a lot of awareness campaigns to educate citizens about blockchain. 

With Panama being very startup-friendly, supportive of blockchain integration, and with hundreds of businesses accepting crypto, Panam is emerging as one of the most crypto-friendly countries in the world. 

How to Choose the Best Crypto-Friendly Country

One thing that everyone needs to understand is that one country can be very crypto-friendly but lacks in some other aspects (i.e. difficulty in business licensing) or vice versa, so it is down to the needs of individuals or businesses to decide which country is more friendly for them. This list has been constructed using information available for each country, but interpretation in terms of what is more crypto-friendly or not can be at times subjective. Nonetheless, this list provides a brief but essential overview in terms of what countries are crypto-friendly. With that said, selecting the right crypto-friendly country for individuals, businesses, or investors is very important. 

Conclusion

In 2024, the global landscape of crypto-friendly countries continues to change. Leading nations like Switzerland, Singapore, and Germany have established clear regulatory frameworks, favorable tax regimes, and innovative ecosystems, making them top choices for crypto operations. Countries like El Salvador and the UAE showcase unique approaches such as legal tender adoption to dynamic VASP licensing. Emerging nations, including Hong Kong and Kazakhstan, demonstrate rapid advancements in regulation and adoption, signaling potential growth. Choosing the right crypto-friendly country depends on individual needs, such as taxation, regulatory clarity, or infrastructure support. Each country offers different advantages, whether it’s zero capital gains tax, good blockchain communities, or access to global markets. Choosing the right crypto-friendly country requires careful consideration of individual needs, such as taxation, regulatory clarity, or infrastructure support. It is essential to consult with legal, financial, and regulatory experts to ensure compliance and to make informed decisions tailored to your specific circumstances. 

FAQ

Which countries are considered the most crypto-friendly?

Switzerland, Singapore, and Germany are among the most crypto-friendly countries. They offer favorable regulations and tax policies for crypto investors.

Are there any European countries that are crypto-friendly?

Yes, several European countries are crypto-friendly. Switzerland, Germany, and Portugal provide supportive environments for crypto activities.

What are the most crypto-friendly countries in 2024?

In 2024, top crypto-friendly countries include Switzerland, Singapore, and El Salvador. They offer favorable regulations and tax benefits for crypto investors.

Which is the most crypto-friendly country?

Switzerland is often considered the most crypto-friendly country. It provides clear regulations and favorable tax policies for crypto activities.

Are there countries where crypto transactions are completely tax-free?

Yes, some countries offer tax-free crypto transactions. For example, Germany exempts long-term holdings from taxes.

Which country is number one in cryptocurrency?

The United States leads in cryptocurrency adoption and transaction volumes. It has a significant impact on the global crypto market.

What factors make a country crypto-friendly?

A crypto-friendly country has clear regulations, favorable tax policies, and supportive financial infrastructure. These factors encourage crypto adoption and innovation.

How do I choose the best crypto-friendly country for my needs?

Consider factors like regulatory clarity, tax policies, and financial infrastructure. Consult with legal and financial experts to make informed decisions.

Is cryptocurrency legal in all countries?

No, cryptocurrency legality varies worldwide. Some countries fully embrace it, while others impose restrictions or bans.