For anyone thinking of starting a new crypto-based business, choosing a location for this could have serious implications on how well or not it ends up getting. We are all aware of the ban on cryptocurrency in Turkey that was recently imposed and anyone who had invested a great deal to build a crypto-based business in Turkey is most certainly not happy. However, not all countries are like Turkey who do not want crypto to thrive and want to retain their absolute control over their respective state currency.
As far as the current situation goes, it appears that most countries have not made up their mind about how to deal with the crypto industry. As crypto is a fairly recent concept, many governments lack a proper understanding of it to settle with a firm policy to regulate cryptocurrency.
However, YuanPayGroup review some countries are fairly open-minded about this new concept and are welcoming its integration as they see the benefits, but others are displaying a skeptical attitude towards cryptocurrency.
It is quite clear that the fate of your crypto venture could hinge a lot on the location you choose for it. Just like you carry out extensive research on trading patterns and do your own market analysis by using your trusted crypto trading signals, it is vital to conduct a thorough research into any governing legislation or policy adopted by different prospective governments when deciding on a location for starting your crypto-based business. Apart from the relevant regulations on crypto itself, make sure to look into other auxiliary factors such as taxations and the ground realities of the existing crypto market in the relevant country.
Now that we have told you what to look into on your own, let us share what we have found about the following countries, which we believe to be much more crypto-friendly than others:
1. Malta
Malta’s forward-thinking approach has helped secure its spot as a global leader for Crypto businesses. The government of Malta wears the crown of being the first to introduce a regulatory framework for crypto. The Malta Financial Services Authority (MFSA) has a forward-thinking approach with crypto and through their VFA Act, they have officially legalized cryptocurrency exchange. For anyone in a country that has not yet legalized crypto exchanges, this peace of mind is something they would truly crave for.
Furthermore, Malta does not charge value added tax or VATon transactions that are exchanging fiat currency for crypto. In addition, Malta is also famous for having the lowest corporate tax in the EU. This makes it a very attractive place for potential investors to establish their crypto ventures.
2. Switzerland
Similar to Malta, Switzerland is also an attractive destination in Europe. It has also adopted a very crypto-friendly approach by keeping a low tax rate for crypto and attracting investors. Another distinct feature about Switzerland is their Crypto Valley which came into inception in a small town and has become the head-quarters of several huge crypto companies.
According to an estimate, the collective wealth of the blockchain and crypto related companies in the Crypto Valley of Switzerland is over 40 Billion US dollars. This is primarily due to the reason that the government provides a very investor-friendly environment, which promotes business and attracts many more businesses to move to Switzerland.
3. Japan
The approach taken by Japan for its legalization and integration of crypto has always made it one of the most sought-after places for starting a crypto based business. Japan was one of the first countries that recognized crypto to be a legal tender, which led to many businesses adopting crypto as an acceptable payment option.
One of the world’s most active crypto trading markets is known to be in Tokyo. Not only many exchanges are based in Tokyo but so are many crypto-based businesses such as crypto signal providers, since their demand is quite high there due to the amount of active traders.
The Financial Services Agency of Japan is in the process of formulating new and improved regulations for crypto and their plans include them to authorize the big crypto exchanges to make their own self-regulatory body, which will make Japan one of the most attractive places to start your crypto venture.
4. USA
Even though US regulation on crypto has been somewhat of controversial topic and the fact that the SEC is currently pursuing a legal case against one of the biggest cryptocurrencies would make it sound like the worst place to start your crypto business, there is still a lot potential for crypto investors in the USA.
This is primarily due to the reasons the market-leading companies in crypto are based in the USA and they have a strong influence, which makes it highly unlikely for the government to take too drastic a measure because the government will be unable to sustain the backlash.
Wall Street giants have also started getting involved in the crypto market, which strengthens the position of the market stakeholders and provides a lot of reassurance to prospective crypto-based business owners.
Can you legally use Bitcoin?
Within the U.S. and a variety of other nations around the world Bitcoin and other cryptocurrency are legal. Central banks have informed citizens in many nations to be aware that Bitcoin and other cryptocurrencies aren’t legally permitted and are not supported by any government. Therefore, any transactions could be in danger.
Countries where Bitcoin is Banned
Many countries have not accepted bitcoin yet.. The countries that are prohibited include the following countries:
- Egypt
- Pakistan
- Algiers
- Iraq
- Bolivia
- Macedonia
- North Africa
- Nepal Nepal
- Morocco
- United Emirates Arabs
Final Words
Many countries have restrictions which are not completely prohibitive of cryptocurrency however they make transactions extremely complicated. For example, Qatar and Bahrain ban digital currencies, however residents are allowed to conduct transactions outside of their borders with cryptocurrency. Bitcoin transactions are not permitted in some countries like Bangladesh, Iran, Thailand, Latvia, Lesotho, China and Colombia through the imposition of limitations on financial institutions. so be careful while investing in bitcoin and check that your country allows you to use bitcoin as payment or not.
