These are the world's most crypto-friendly countries
The Netherlands is not among Social Capital Markets' Top 20 list of the most crypto-friendly countries.
The Netherlands isn’t listed in Social Capital Markets' Top 20 of the most crypto-friendly countries. Because the Netherlands is doing so poorly, we also find little information in the report about the state of the Dutch business climate for crypto companies.
After analyzing regulations, tax systems, and business conditions, they concluded that Dubai, Switzerland, and South Korea are the most crypto-friendly countries in the world.
Crypto adoption as a global competition
“Cryptocurrencies have completely changed the way people invest and manage digital wealth, contributing to economic growth in various regions,” according to the Social Capital Markets report. More and more countries are recognizing the huge potential of this emerging industry and are adjusting their regulations accordingly. With new laws and tax incentives, these countries are attracting crypto businesses, creating new jobs in locations friendlier to the crypto sector. The Netherlands and the EU usually lead in rulemaking. This could explain why the first EU country ranks sixth (Estonia).
The study factored in several criteria. The criteria included legal transparency, capital gains tax, corporate tax rate, number of registered crypto businesses, and the presence of shops that accept crypto as a form of payment.
The result: not the United States, but Dubai, Switzerland, and South Korea are especially attractive for the crypto industry. These three relatively small states from three very different regions show how globally oriented the industry is. Singapore ranks fourth and the US comes in fifth.
Dubai and South Korea: How crypto works in Asia
With a perfect 79 out of 100, Dubai took first place, mainly thanks to its transparent regulatory policy and widespread support for numerous blockchain projects. The most famous and economically advanced Emirate of the UAE also shines due to no capital gains tax, a relatively low corporate tax (9%), and affordable licensing costs for crypto firms.
The United Arab Emirates recently tightened its crypto regulation with a new framework. The approval process for companies wanting to operate in Dubai has thus been simplified again. It’s also very attractive for private crypto investors and traders. For anyone trying to dodge taxes, it could be a paradise.
That South Korea finished in third place with a total of 73.5 points might surprise some crypto enthusiasts. The former Asian tiger economy is known for regulatory clarity and a proactive stance toward financial innovation. Recently, the government in Seoul postponed individual profit taxes.
Crypto enthusiasm is high in South Korea anyway, as shown by unusually high trading volumes on national exchanges. In Q1 of this year, the Korean won briefly displaced the U.S. dollar as the dominant fiat currency in crypto markets.
Switzerland scores well
"Switzerland has made big strides in crypto, with the city of Zug recognized as a global crypto hub," the report on Switzerland states. With 74.5 points, Switzerland ranks ahead of South Korea, affirming a strong business climate. There are also tax advantages and an easy path to starting a company.
The Swiss Financial Market Supervisory Authority (FINMA) provides clear regulatory guidance, especially in the crypto-friendly canton of Zug. As a result, more than 900 crypto companies have registered there, including the Ethereum Foundation. Many Swiss banks are open to the new sector. Zürcher Kantonalbank began trading Bitcoin and Ethereum in early last month. For private investors, selling cryptocurrencies is tax-free.
Nevertheless, Switzerland defends its attractiveness for crypto businesses in Europe. With its long-standing financial center tradition and decentralized political structure, Bitcoin and Switzerland seem made for each other.
