Ranking of Crypto-Friendly Countries in 2024: Comparison of Regulation, Taxation, and Development Environment

Compilation: Aiying Team Cryptocurrencies are fundamentally reshaping the landscape of investment and digital assets, driving economic growth in many regions. Recognizing this potential, many countries have adjusted their regulatory frameworks and introduced a series of legal measures to actively attract crypto businesses and startups. By 2024, crypto-friendly countries are rapidly emerging globally, with some countries standing out for their proactive approach in fostering the development of crypto enterprises. Through research by socialcapitalmarkets, countries like Switzerland and Singapore have long been recognized as the most crypto-friendly business environments, while Estonia, Malta, and the United Arab Emirates have also made significant progress in this field. After in-depth analysis of the regulatory policies, tax frameworks, and business environments of these countries, they have selected the top ten countries with the most promising future development in the crypto business. Country Comprehensive Score Overview: - Dubai (Score: 79): Dubai has become the preferred destination for crypto companies, with its leading regulatory clarity, zero capital gains tax, 9% corporate tax, and low business license fees. - Switzerland (Score: 74.5): Ranking second, Switzerland has over 900 registered crypto companies, and its long-term capital gains tax is only 7.8%, highly favorable for investors. - South Korea (Score: 73.5): South Korea ranks third, playing an important role in the global crypto landscape. - Singapore (Score: 72): Ranking fourth alongside South Korea, the government has provided $89 million in blockchain support funding, providing strong support for crypto enterprises. - Brazil (Score: 66.5): Ranking tenth, 12.5 points behind Dubai, but still maintains a strong presence in the global crypto ecosystem. - Germany (Score: 66.5): Germany shares the same score as Brazil, providing similar policy conditions for crypto businesses. - United States (Score: 71): The US is far ahead in crypto adoption, with 5,968 businesses accepting cryptocurrency payments, scoring full marks (20/20) in this category. - Portugal (Score: 51.5): Portugal has 108 businesses accepting cryptocurrencies, with a high short-term capital gains tax of 28%, but offers relatively favorable conditions for long-term investors. - Malta (Score: 59.5): Malta has a high corporate tax rate of 35%, but its regulatory framework is crypto-friendly, with 15 authorized crypto companies operating there. From the performance of these countries, it can be seen that government support in terms of policies, tax incentives, and regulatory transparency plays a crucial role in attracting crypto companies. Dubai, Switzerland, and Singapore, with their clear policies and favorable tax conditions, have attracted a large number of blockchain and crypto companies. Countries with large-scale markets, such as South Korea and the United States, have also achieved remarkable results in the actual adoption and promotion of cryptocurrencies. Faced with the rapid global development of cryptocurrencies, the attitudes and policies of governments have become a key factor. Whether they can formulate regulations and systems that are conducive to the development of blockchain technology and crypto businesses will determine whether these countries can occupy a place in the future digital economy. In the future, the rise and fall of crypto enterprises in these countries will provide valuable experience and examples for other countries around the world. In summary, by 2024, Dubai will lead the list of crypto-friendly countries with a significant advantage, followed closely by Switzerland, Singapore, and others, continuously attracting the most vibrant crypto entrepreneurs and enterprises globally. In this global digital asset race, the country that can formulate more open and inclusive policies will gain the upper hand in the future digital economy. Top 10 Crypto-Friendly Business Countries 1. Dubai 2. Switzerland 3. South Korea 4. Singapore 5. United States 6. Estonia 7. Italy 8. Russia 9. Germany 10. Brazil 1. Dubai (Score: 79) - G20 Member: Yes - Regulatory Framework: Dubai Multi Commodities Centre (DMCC), Dubai Financial Services Authority (DFSA) - Legal Transparency: Clear and supportive - Capital Gains Tax: No capital gains tax - Corporate Tax: 9% on taxable income above 375,000 AED - Number of Registered Crypto Companies: Over 550 - Overall Crypto-Friendly Score: 79/100 In recent years, Dubai has gradually become a very proactive country in the crypto field. Dubai's DMCC (Dubai Multi Commodities Centre) has even established a dedicated crypto center and provides a launch platform for companies engaged in crypto and blockchain technology. As a G20 member, Dubai has regulatory bodies like VARA (Virtual Assets Regulatory Authority) and DFSA (Dubai Financial Services Authority). Companies must register with DFSA and DMCC before they can operate crypto businesses in Dubai. The Dubai government does not levy capital gains tax on crypto company revenues, which greatly increases the attractiveness for crypto enterprises. Additionally, Dubai only imposes a 9% corporate tax on business income exceeding 375,000 AED. Currently, Dubai has over 550 registered crypto companies. 2. Switzerland (Score: 74.5) - G20 Member: No - Regulatory Framework: Swiss Financial Market Supervisory Authority (FINMA) - Legal Transparency: Clear and supportive, especially in the Zug region - Capital Gains Tax: 7.8% - Corporate Tax: 12% - 21% - Number of Registered Crypto Companies: Over 900 - Overall Crypto-Friendly Score: 74.5/100 Switzerland has achieved remarkable success in the crypto field, with Zug being recognized as one of the global crypto hubs. As early as 2018, Swiss Economics Minister Johann Schneider-Ammann announced the vision of making Switzerland a "crypto nation". The Swiss Financial Market Supervisory Authority (FINMA) provides a clear and supportive regulatory environment for crypto enterprises, especially in the canton of Zug, known as "Crypto Valley", which has attracted over 900 crypto companies to register and establish operations. Switzerland has set reasonable tax rates for crypto service providers, with a capital gains tax of 7.8% and corporate tax rates ranging from 12% to 21%. Additionally, Switzerland has over 400 companies that accept cryptocurrencies as a means of payment. 3. South Korea (Score: 73.5) - G20 Member: Yes - Regulatory Framework: Korea Financial Intelligence Unit (KFIU), under the Financial Services Commission (FSC) - Legal Transparency: Gradually improving - Capital Gains Tax: Temporarily suspended (0%) - Corporate Tax: Deferred until 2025 - Number of Registered Crypto Companies: 376+ - Overall Crypto-Friendly Score: 73.5/100

Korea, as another G20 country, is gradually becoming a hotspot region for crypto enterprises. Digital asset trading and services are regulated by the Korea Financial Intelligence Unit (KFIU), which is under the Financial Services Commission (FSC). Although the regulatory framework for cryptocurrencies is still being gradually improved, Korea's efforts to create a crypto-friendly environment are quite significant. Companies operating crypto services in Korea need to register with the FSC and comply with the laws it prescribes. Although the relevant regulatory framework is still evolving, Korea's supportive attitude towards the crypto industry is gradually becoming apparent. Currently, Korea has postponed the implementation of capital gains tax, and the corporate tax is planned to be implemented from 2025. With over 376 registered crypto companies, Korea is steadily developing and gradually becoming a crypto powerhouse in Asia. Singapore is an important business center, including for crypto companies. Enterprises need to obtain a license from the Monetary Authority of Singapore (MAS) to establish a crypto business in Singapore. In addition, Singapore also supports the industry through the Cryptocurrency and Blockchain Association, helping small and medium-sized enterprises develop. The absence of capital gains tax and a 17% corporate tax rate are important factors in attracting crypto entrepreneurs. Singapore currently has about 100 registered crypto companies, and the country has provided a huge grant of $8.9 million to fund blockchain technology research and development in Southeast Asia, making it a leader in the crypto business in the region. In the United States, cryptocurrencies are widely accepted. Over 5,000 companies from different sectors accept cryptocurrencies as a payment method, indicating that in this G20 country, cryptocurrencies have become an important industry. However, legal transparency in the US varies by state, creating a diverse regulatory environment. Many states have already enacted laws supporting crypto, such as Colorado, which has established a sandbox program for blockchain companies, allowing them to test new products and services. In terms of taxation, the US is relatively lenient towards crypto companies, currently not imposing capital gains tax on cryptocurrencies, and the corporate income tax rate is 21%. Although government licensing fees are high, at $176,226, the US, with its vast market and spirit of innovation, remains an important participant in the crypto industry, with over 474 registered crypto companies. Estonia has established strict anti-money laundering (AML) and anti-terrorist financing prevention laws between 2021 and 2022, which have had a significant impact on its crypto service provider market. These laws have caused many companies to abandon their licensing plans, and in 2022, the Financial Intelligence Unit (FIU) also revoked the licenses of nearly 482 crypto companies. Currently, only about 100 crypto companies have obtained licenses to operate in Estonia. Despite the strict regulations, the favorable tax conditions are still attractive to crypto companies. Estonia has no capital gains tax, but a 20% withholding income tax is levied on earnings. Italy has not set up regulatory barriers to crypto companies for a long time. However, the country has recently tightened the rules and regulations regarding crypto business. The introduction of the European Union's 'Crypto Asset Markets Regulation' (MiCA) framework has also influenced the way Italy regulates crypto service providers. Even so, Italy currently has 73 approved crypto service companies actively operating in the market. Although the tax rates are relatively high, they are still lower compared to countries like Australia or Japan. Italy's capital gains tax rate is 26%, and the corporate income tax rate is 24%. Russia, as one of the world's superpowers, has attracted crypto companies with its favorable tax policies. Russia has no capital gains tax, and the corporate income tax is fixed at 20%. The country recognizes cryptocurrencies as a legal currency, and currently, over 500 companies accept cryptocurrencies as a means of payment. This has accelerated the transaction process, ensured the security of payment data, and most importantly, simplified the operations of crypto companies in the market. Germany is one of the countries that recognized the potential of blockchain technology early on and used it for digital transformation. The German Savings Banks Association (a network of 400 savings banks) has even developed fintech blockchain applications to facilitate cryptocurrency transactions. Germany has a supportive attitude towards cryptocurrencies and extends this support to crypto businesses. For long-term crypto income, whether for individuals or companies, there is no capital gains tax, but short-term capital gains tax ranges from 0% to 45%, depending on the earnings. Enterprises also need to pay a 15% income tax. Despite the relatively high tax rates, Germany's transparent and sound crypto regulations make it an ideal choice for crypto companies. Currently, over 700 companies in Germany accept cryptocurrencies as a means of payment, further enhancing business convenience.

Capital Gains Tax: 15.0% - 22.5%

Corporate Tax: 0% - 27.5%

Registered Crypto Companies: 19+

Crypto-Friendly Score: 66.5/100

Brazil's position in the crypto world is still evolving. Crypto service providers must register with the Central Bank of Brazil to operate in the country. In 2022, Brazil established a framework for the crypto industry and designated the Central Bank as the regulatory authority. However, due to the lack of fully established laws and regulations, this makes Brazil a relatively less restrictive environment for businesses. However, Brazil's high tax rates make it a less than ideal choice for businesses. The country has a maximum corporate income tax rate of 27.5%, while short-term capital gains tax ranges from 15% to 22.5%.