There was a time when only a few people could understand cryptocurrency and how to use it. Now, it has become one of the most reliable ways to make online transaction and combat the centralized power.
These days many people are planning to invest in cryptocurrencies. Some of them are opening their own crypto-related firms, while others are switching their payment system to this virtual currency.
However, the success in your crypto business depends a lot on the country you live in. While some countries have embraced it with a great heart, others are just looking for a way to limit its expansion.
It is crucial for you to choose the right country to start your crypto business so that you can protect it from any hostile movement of the governments..
How to Choose a Crypto-Friendly Country
There are so many ways to start a business that has cryptocurrency as its base. There are crypto-alert software companies, wallet business, cryptocurrency specialty law firms, ICO business, among others.
No matter what business you’re opting for, it is prudent to base your business in a place where you don’t have to face any problems. But, how do you know if a country is crypto-friendly or not?
There are many features that make some countries suitable to start a crypto-based business, but one of the most significant ones is their willingness to reduce taxes and create useful legal regulations for businesses that use blockchain.
Besides, the country has to be economically developed, a technological hub, as well as the most secure place to invest.
So, before you choose a country for your next business destination, carefully analyze its government policy and regulatory framework.
Best Crypto-Friendly Countries in The World
Since you already know the qualities required for a country to be your business destination, you must look for them before you set up your business there.
Here are some of the countries that are known as the best destinations for the crypto business.
The USA: The Hotbed of Crypto Business
With so many high-profile crypto-exchanges, miners, wallet developers, and custody providers, the USA is undoubtedly the best place to start your own crypto company.
Besides, the government is working to legislate a framework for the cryptocurrency-businesses that is clear and legal.
The taxation method in some states is still not clear and the policy varies from state to state. However, lawyers in different states are fighting to make it right.
And the best part of it is, this technology is becoming mainstream in the US since the cryptocurrency community is thriving there.
Japan: The Pioneer of Technological Wonder
When it comes to advanced technology, Japan is always quite ahead of the game. This tech-savvy country is one of the biggest traders of Bitcoins in the world. So it’s not even surprising that Satoshi Nakamoto, the person or a group of persons presumed to develop Bitcoin, is from Japan.
Many businesses in this country, including restaurants, cafes, etc. are considering cryptos as one of their payment methods. In fact, in 2018, 16 of the country’s biggest cryptocurrency exchanges were allowed to create a self-regulatory body.
Because of this initiative, more and more crypto startups are moving to Japan to establish their business in a friendly and safe regulatory environment.
Switzerland: Thriving Ecosystem of Blockchain
Zug is the first city in the world that accepted payment of local bitcoin in 2016, a good reason to call Switzerland home for many crypto-businesses.
The credit goes to its government, which has always been open to the crypto startups and the ideas of this popular virtual currency.
Most of the world-famous blockchain companies, entrepreneurs, incubators, legal services firms, and conferences are based in Switzerland, including ConsenSys, Bancor, among others.
The country’s Crypto Valley ensures tax-free support to the crypto investors, thus making it one of the most secure places for such businesses.
Singapore: Place of Technology and Reduced Tax
Singapore is the number one choice to start a business for most entrepreneurs.
The tech-friendly country is slowly becoming a safe place for starting a crypto business, particularly after its new regulatory framework for payment services.
Since most of the country’s payment systems are now accepting cryptocurrencies, this could be your chance to move your business there. Besides, it’s growing high-tech companies can also be a great option to attract new investors for your crypto-based startup.
Luxembourg: A Financial Hub
You might be wondering why you should choose such a tiny country to start your business, particularly when it involves cryptocurrencies. But, this European country is one of the most economically developed in the whole world.
Bitstamp, one of the world’s largest cryptocurrency exchanges is based on Luxembourg. The country also allows Bitflyer, a Tokyo-based company to operate its business here.
The best part is, cryptos are considered as an intangible asset in this country, hence, you don’t need to pay tax until they are disposed of.
Besides, the University of Luxembourg is currently working on improving the security of crypto assets, meaning that it will soon become the next business hub for crypto investors.
Malta: Place of First Decentralized Bank
Known as the first blockchain island of the world, the government of Malta possesses a lot of legal actions to prove that.
First of all, most companies that are underlying the blockchain are receiving a framework.
Besides, compared to other countries, banks here are quite crypto-friendly. In fact, Malta is the first country in the world where you will find a decentralized bank.
The country is also popular for its famous annual crypto events, Malta AI & Blockchain Summit, which has been successfully operating since last year.
The event has become quite popular and also a successful one, thanks to the investors, influential crypto speakers, blockchain-based companies, who have all joined there.
There are many factors to consider while choosing the most suitable place to start your new business, especially when it involves cryptocurrency.
Starting from low tax to decentralized banking system and technological advancement, a lot of things can make a country crypto-friendly. However, at the end of the day, you need to decide where you want to start your next crypto business.
Some places will provide you advanced technology but they might not give you the benefits of reduced tax. You may also face trouble getting investors and talent for your company if you struggle to cope with the culture and environment of that country.
Starting or moving your business to a foreign country doesn’t happen overnight. Take your time to do proper research before you settle on your new headquarter.