For this reason, most blockchain investors limit their activities to locations that accept cryptocurrencies. Here are top 7 governments that embrace cryptocurrency, as well as some of the actions they have done to implement it. After all, it is one of the best strategies to get one step closer to securing excellent results.
Government of Singapore
Singapore’s legal authorities regard Bitcoin and other digital assets as products. As a result, enterprises that use cryptocurrencies pay only 7% in taxes. In 2018, Singapore established a solid regulatory framework for crypto services, which aided in preventing fraudulent activity. It also drew investors from around the world. As a result, most businesses rely on digital asset management to remain competitive.
Government of Japan
The country of the rising sun boasts some of the most forward-thinking crypto legislation in the world. In 2017, Japan established detailed tax requirements for investors. In addition, the Japanese Virtual Currency Exchange Association (JVCEA) launches and enforces rules and standards for virtual currencies in Japan. To maintain objectivity, it is divided into 20 groups. Crypto assets are also considered legal currency in the country.
Government of Switzerland
Switzerland is a hotspot for blockchain technology firms and prominent cryptocurrency exchanges. Zug, one of its cantons, has earned the moniker “Crypto Valley” since it is home to hundreds of blockchain firms. Digital assets are also used in the day-to-day operations of the country. Swiss trains, for example, accept bitcoin as payment, and many Swiss banks offer direct crypto transfers and deposits.
Grand Duchy of Luxembourg
Because cryptocurrencies are considered intangible assets in Luxembourg, they are not subject to income tax. It also exempts the exchange of digital assets from VAT. These tax breaks alone make Luxembourg an attractive destination for blockchain investors. Moreover, the presence of multiple thriving exchanges within its borders demonstrates its pro-crypto position even further.
Government of Canada
Canada, like its southern neighbour, the United States, maintains a generally pro-Bitcoin posture while also preventing cryptocurrency from being used for money laundering. The Canada Revenue Agency considers Bitcoin to be a commodity (CRA). This means that Bitcoin transactions are treated as barter transactions, with the income earned treated as company income. The taxation also depends on whether the individual is involved in a buying-selling firm or is merely interested in investing.
Government of Malta
In 2018, Malta passed three acts that established a unique framework for digital currencies. Since then, it has been a fervent promoter of cryptocurrency. So much so that over $70 billion has passed through the island nation in recent years. Despite concerns about “loose oversight,” Malta argues that its crypto business is well-regulated.
Government of The United States
The US government has maintained a largely supportive posture toward Bitcoin; however, various government agencies are working to restrict or reduce the use of Bitcoin in illegal transactions. Dish Network (DISH), the Microsoft Store, sandwich vendor Subway, and Overstock.com (OSTK) all accept Bitcoin payments.