Insights

Best countries for digital money trading, mining, and more.

Bitcoin and other cryptocurrencies sure have made a splash since they were introduced in 2008.  As of 2015, there were 14.6 million bitcoins in circulation and they have found their way into many aspects of our everyday lives. Because digital currencies have become so familiar to us, it is inevitable that regulations begin to develop. Many countries, like the People’s Republic of China for example, have strict laws surrounding currency. ICOs have been banned and cryptocurrency exchanges have been frozen. Bitcoin mining is no longer allowed and cryptocurrency or any internet activity surrounding crypto has been banned. Many nations are concerned with the security of the currency. Others aren’t willing to introduce a new currency into their economy. These nations are shutting down exchanges and refusing services to cryptocurrency companies. Other nations, however, are excited about what crypto can mean for their economy. These crypto-friendly countries are the best places to conduct digital currency business. We have listed some of the most recognized countries that are encouraging the use of cryptocurrency around the world.

Switzerland

Switzerland has always had a progressive viewpoint on individual banking and privacy, and this holds true with cryptocurrency regulation – with an open attitude towards digital money. Economics Minister, Johann Schneider-Ammann, stated in January of 2018 that he would like to see Switzerland as “the crypto-nation.” Swiss officials want to see the ICO market prosper while also keeping up the standards and integrity of the financial markets. There is an ICO working group that is working to increase the legal certainty, protect existing financial centers, and ensure tech-neutral regulation. The country is also home to the “Crypto Valley” project, one of the world’s leading ecosystems for crypto, ledger technologies, and blockchain. Many successful ICOs have come from Switzerland.

Japan

Many are proud to Japan the birthplace of Satoshi Nakamoto, the creator of Bitcoin. Being one of the most technologically advanced nations in the world, the country is the first country to have proper legal systems in place that regulate crypto trading. As of April 2017, Bitcoin is considered a legal tender in the country of Japan. In fact, this is the biggest market for the famous digital currency, and nearly half of Bitcoin’s daily volume is traded in Japanese currency. In Japan, exchanges are legal if registered with the Japanese Financial Services Agency.

Netherlands

Home to the “Bitcoin Embassy,” Amsterdam, Netherlands is another leading cryptocurrency hotspot. This highly active crypto-community is filled with those working hard to spread the power of the cryptocurrency. Regulations surrounding blockchain technology is light, with the Dutch government even experimenting with its own cryptocurrency, DNBcoin. A comprehensive regulatory system is in development by the Dutch Blockchain Coalition that will promote safe use of blockchain and cryptocurrency development. ICOs are not regulated as of right now.

Denmark

With 0% taxes on cryptocurrencies, there’s no question why Denmark is one of the friendliest countries for crypto users. Cryptocurrencies aren’t recognized as tender since there is no issuer which means they aren’t subject to regulations according to the National Bank of Denmark. The government has been verbal in its intentions to be hands-off when it comes to cryptocurrency regulations, leaving the matter to the European Union. Trading crypto is completely tax exempt in Denmark, making it one of the most friendly nations for crypto activity. Capital gains on cryptocurrencies are also tax exempt. The country of Denmark is closer to reaching its goal of being the world’s first cashless economy.

Malta

Not only is Malta a crypto-friendly country, the government has gone as far as to launch the Malta Digital Innovation Authority that will provide legal clarity for companies developing blockchain technologies, digital money, and ICOs. The country is quickly becoming a popular nation for conducting cryptocurrency business and many entities have considered moving to this crypto-haven.

Singapore

This country is well known for being lenient on capital regulations. With crypto, the country doesn’t consider the currency a currency or commodity. Individuals who use digital currency for profit don’t have to adhere to any specific taxation laws. Businesses, however, are taxed on the profits derived from their crypto trading. Many firms began registering their companies in Singapore after the Indian central bank cracked down on virtual currencies. They are taking advantage of this global hub for blockchain development. This is partially due to the stable politics, solid infrastructure, and thriving business environment. There is so much buzz around crypto and so much to learn. For more information about cryptocurrency, read our introduction to cryptocurrency page. We also have a cryptocurrency vocabulary list where you can learn all of the words associated with cryptocurrency. Once you get involved with digital money, you will also need to know how to stay tax compliant. For this, we have gathered some tax laws from around the world regarding cryptocurrency.

Alpen Partners International

Alpen Partners International, the sister company of Alpen Partners, is now a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident. Building on many years of experience in private banking in Switzerland, Alpen Partners International provides investment advisory services to U.S. clients. Swiss banking is highly regarded around the world, well known for being sophisticated and discreet. In 2017, it was reported that $7.5 trillion in assets are held in Swiss banks, and almost 51% of that is generated from clients outside of the country. Choosing Switzerland as a banking destination is choosing years and years of financial stability and growth. The advantages of having an account in Switzerland include currency and investment diversification, asset protection, and the possibility to deposit assets in some of the oldest and best-capitalized banks in the world. All investments involve certain risks. All investments carry the potential for financial loss, including the loss of the principal amount invested. Past performance should not be viewed as an indicator of future results. Market conditions and broader economic factors can significantly impact the value of investments. Investments in international markets are subject to additional risks, such as currency exchange fluctuations, political or economic instability, and variations in accounting practices. Alternative investments, including but not limited to hedge funds, private equity, and real estate, may be illiquid, speculative, and are not suitable for all investors. The above information should be considered before making any investment decisions. All posts and publications are for your information only and are not intended as an offer, promotion, or solicitation to buy or sell any financial instrument or perform any other financial transactions. All information and opinions expressed in posts and publications reflect our current views as of the date of the publication and may be liable to change without notice.