Cryptocurrencies are something of a slippery slope for many investors, and while some were quick to adopt them and add them to their portfolios, others steered clear due to the reputation of digital coins.
Major fluctuations and a rapidly changing trading environment are unlikely to attract newcomers who prefer more consistent markets with fewer risks. But long-term crypto holders who saw their initial investments yield incredible results have a different story to tell.
For them, cryptocurrencies are a fantastic way to drive value and make money with minimal effort, so they follow market fluctuations religiously and are always aware of the Ethereum price.
Because they are somewhat controversial, cryptocurrencies haven’t been welcomed with open arms everywhere. If you’re a trader, here are some of the places where you might want to spend your next holiday so you can also work on your portfolio after you enjoy sightseeing and lounging on the beach.
Malta
Malta has three separate laws that provide crypto investors with protection and legal certainty. The small European nation is considered by some to be a legitimate blockchain island and has attracted some of the biggest names in the industry due to its progressive regulations.
There are also no capital gains on the transactions. Both individual investors and companies that use cryptocurrencies have been attracted to the safe haven of Malta in order to carry out transactions.
Monaco
Monaco is well-known as a place where the world’s richest gather together. The country, the second-smallest by area on the planet, doesn’t collect personal income, property, or capital gains taxes. These characteristics have attracted large numbers of high-income residents.
On top of that, Monaco is also one of the most crypto-friendly nations, and interest in cryptocurrencies continues to grow. The country has a very clear regulatory environment for digital assets that supports the industry and doesn’t attempt to censor it.
Singapore
The city-state of Singapore has also been accepting of cryptocurrencies and its investors. Tax exemptions apply to some tokens. Investors have clear structures for paying taxes as well.
This makes the environment much safer and allows traders to be sure that their funds are well-protected. Singapore is also involved in innovation projects within the crypto and blockchain space and welcomes tech developments.
Estonia
Situated by the Baltic Sea, Estonia is a developed country with an advanced economy. It ranks very high in international rankings concerning education, human rights, and quality of life for all citizens. That also means that technology and developments are prevalent.
Estonia offers a unique licensing system for both wallet service providers and exchanges. It also uses special programs like e-Residency to let businesses use digital services even when at a distance.
Japan
Japan is one of the most mature crypto markets in the world, with Bitcoin recognized as a legitimate form of payment as early as 2017. Regulations were implemented under the Financial Services Agency as well.
While many of them were considered strict by the community, they also offer a crystal-clear framework for investors so that there’s no confusion about what’s legal and what’s not.
There’s also a self-regulatory agency known as JVCEA, the Japan Virtual Currency Exchange Association, that’s in charge of setting the standards for the soundest practices.
Netherlands
When it comes to crypto in Europe, there are few countries that are as accepting as the Netherlands. Many start-ups, organizations, and companies use cryptocurrencies, on top of all the individual investors who added it to their portfolios. Many exchanges operate in the country as well.
The Netherlands adopted a self-regulatory model for service providers, which requires them to hold official registration licensing from the DNB, the Dutch Central Bank. They must also adhere to standard financial rules.
Hong Kong
As one of the world’s major financial hubs, it should come as no surprise that Hong Kong is part of this list. The city is quite liberal when it comes to cryptocurrencies and allows residents to trade openly without the risk of restrictions and steep taxation rates.
Many crypto events and publications hail from the country, and several exchanges call Hong Kong home as well. However, the regulatory framework is not yet 100% clear, and new legislation is expected to tackle the issues of investor protection and crypto use in institutions.
Canada
Canada is one of the world leaders in business and tech development, based on a healthy mixture of innovation and helping and protecting investors. Crypto coins are taxed based on capital gains since they are regarded as commodities instead of legal money.
This means that companies and individual traders have the possibility to estimate their liabilities. Separate reporting requirements are needed for all taxpayers who engage in crypto buying, selling or trading.
Gibraltar
Gibraltar is an Overseas British Territory that has embraced blockchain technology and cryptocurrency transactions. It seeks to guard investors from the harmful effects of volatility and price fluctuations, all while attempting to attract companies and enterprises interested in working with and investing in crypto.
Similar to other countries and regions on the list, it offers tax advantages, including a 0% capital gains tax. The corporation taxes are also exceedingly low.
Argentina
Compared to the other crypto-friendly regions, Argentina has been dealing with considerable economic troubles, particularly in the form of hyperinflation. In 2023, the inflation rate stood at over 200%, the highest figure in over three decades.
This has led the general public to look for alternatives in order to support their savings and ensure their money can retain some of its value. Cryptocurrencies and stablecoins are some of the methods people adopt as hedges against inflation.
At the moment, digital coins are subjected to income tax or capital tax gains. Despite that, the high adoption rate has turned the country into a hotspot for innovation.
Germany
Germany is home to one of the strongest economies in the world, and it continues to thrive and develop as a result of its propensity for development. Every year, 3% of the GDP goes directly to development and research endeavors.
That is approximately 100 billion euros every year, and about two-thirds of this amount goes directly to businesses. Germany accepted Bitcoin as a valid method of payment in 2013, regulated providers as part of the Banking Act, and offers tax exemptions for transactions that were held for over a year.
Cryptocurrencies are something of a controversial topic among investors and analysts, and they are not welcome in many parts of the world. But if you’re an investor and you’re looking to travel to a crypto-friendly area, the list above can provide you with some indications of where to start.
