We’re talking cryptocurrency. So it is important to know that there tons of variations from one country to another when it comes laws and regulations. Figuring out which countries are cryptocurrency friendly is important.
Which Countries Are Best For A Cryptocurrency Enterprise?
One of the countries that is cryptocurrency friendly and where many have already decided to establish their business in is Estonia.
Here are a few reasons why you Estonia is becoming popular in the crypto world.
Estonia is one of the countries with the greatest internet penetration rates in the world.
There are Bitcoin ATMs, the first of which started in Tallinn back in 2015. On top of that, the country’s authorities seems to be prepared to take it to the next level, as it prepares to produce the so called “estcoin”– more of a token than a cryptocurrency, but still an excellent step into the crypto arena.
Along with the estcoin, Estonia is moving toward an “e-residency” concept for businesses. This will facilitate the lauching of ICOs. Basically, they are making it easier and more attractive for cryptocurrency entrepreneurs to do business there.
Another aspect of the e-residency program, is easy access. Anyone in the world can easily apply for a digital ID card and get access to Estonian e-services when preparing to launch a crypto related company in this East European country.
Estonia is moving toward becoming the top choice when talking about secure ICOs. They are offering a cryptocurrency exchange license in order to facilitate ICO services. That country’s regulatory authorities are exhibiting a welcoming mindset and are willing to work with you.
One more desirable reason to start your venture in Estonia is an advantageous tax policy. Cryptocurrencies are not subject to value-added tax (VAT). Couple that with zero income tax administered up until after an ICO’s earnings become dividends. Furthermore, compared with various other countries where cryptocurrency business is promoted, in Estonia, the costs of launching a business are a lot lower.
Switzerland is welcoming crypto businesses
One more country totally suited for cryptocurrency enterprises is Switzerland. This country aspires to become the first “crypto nation,” as the Swiss Economics Minister declared at Crypto Finance Conference St. Moritz, in January 2018.
Switzerland is the home of “Crypto Valley,” already well-known for its business-friendly regulatory stance and openness. Easy to meet requirements for setting up a brand new blockchain crypto business indicate the demand for ICOs will continue in grow throughout 2018.
Keep in mind that in Switzerland cryptocurrency taxes vary. They are applied differently if you are in individual investors as opposed to being a professional traders. Getting professional legal advice concerning your business endeavors is always recommended.
Need To Know EU Cryptocurrency Taxation Laws
Globally speaking, there are a number of countries that banned or put numerous restrictions on cryptocurrency. The EU, on the other hand, have taxation laws tend to be a bit more open-minded. In fact, in the EU there are quite a few tax-free crypto countries. We are talking zero regulation at all pertaining to cryptocurrency.
Here are some countries that don’t collect taxes on crypto businesses:
Denmark: Crypto transactions are seen as private in Denmark. Cryptocurrency transactions are not taxed and the profits are tax exempted.
Slovenia: As of this writing, capital gains are not taxed for individual crypto investors. However they are taxed for businesses. And individuals have to pay if they are getting their incomes as cryptocurrency.
Exactly what does the foreseeable future hold?
No matter if tax-free or not, regulations are a necessity when it pertains to cryptocurrency. Problems can arise. In Switzerland, tax evasion can be a problem. Also, cryptocurrency exchanges are a target for hackers. The exchanges have to be made safe and secure.
As the popularity of cryptocurrency and crypto related businesses increases, more EU countries and those around the world will most likely move toward adding regulations concerning cryptocurrency. A country taking steps to being both friendly toward and offering a safe climate for cryptocurrency could certainly make a substantial difference in an enterprise’s selection of which country to operate in.
As cryptocurrencies become more and more common, they have the capability to completely transform the way we think and act about money and transactions. Already major corporations such as IBM and Cisco have begun to embrace this technology. Barclays, Bosch, Western Union and others have followed suit too.
Some in the industry think that in 10 years everyone under 30 will be using crypto regularly.