Are you a crypto enthusiast or supporter? If you want to invest in cryptocurrencies, knowing about the legality status and regulations are important. Different countries treat cryptocurrencies differently.
In some countries, cryptocurrencies are considered property. On the other hand, some countries treat them as alternative currencies. While some countries restrict the usage of virtual currencies, others only allow crypto investments. This guide will help you explore the best and worst countries in the world for cryptocurrencies.
Best and Worst Countries for Cryptocurrencies
This guide will help you to know about the best countries that allow you to perform all the activities like trading, investing, shopping, and mining. Also, it will provide you information on tax regulation and the legality status of cryptocurrencies across various countries. Let’s start with the best countries list, then we will learn about the list of the worst countries for cryptocurrencies.
Best Countries for Cryptocurrencies
The following list of countries is best for cryptocurrencies in terms of legal status and tax regulations. The legal usage and taxation are better than many other countries in the world.
Cryptocurrency is legal in Germany, but you need to follow certain regulations. It is also one of the best countries for cryptocurrencies. Normally, you don’t have to pay VAT for crypto earnings.
More interestingly, you don’t have to pay capital gains tax if you hold your crypto investments for more than one year.
The United States
One of the best countries for cryptocurrencies is the United States. It is due to the early adoption of virtual currencies and the support that the US government offers. The IRS has developed special regulations for cryptocurrencies.
The government considers them as property. There are specific rules for tax implications on crypto assets. They are taxable as similar to stocks and other properties. Moreover, there are many crypto-based companies and merchants all over America. You can pay for various products and services with cryptocurrencies in the USA. There are also many crypto ATMs where you can purchase cryptocurrencies.
Another best country on the list is Australia. You can invest and trade in cryptocurrencies, and the earnings are subject to capital gains tax. All your earnings through cryptocurrencies will be considered as property.
One of the major benefits of investing for the long term in cryptocurrencies in Australia is the government offers a 50% discount if you invest in it for more than one year. Now that you know about some of the best countries for cryptocurrencies. Let’s know about the list of the worst countries for cryptocurrencies.
Worst Countries for Cryptocurrencies
The worst countries for cryptocurrencies are those that ban their usage. The top worst countries on the list are Bolivia, Ecuador, Nepal, Egypt, and Columbia. The worst thing is these countries do not allow it to make profits from trading or investing in cryptocurrencies at all.
However, there are some countries little better that allow trading and investing in virtual currencies but charge high taxes. Japan, Israel, and Sweden allow you to earn profits from investing in crypto, but they have high taxes.
If you cannot show enough documents, you may have to pay 100% tax for crypto earning in Israel and Sweden. In comparison, you have to pay more than 50% of your crypto earnings in Japan.
China is quite different and allows you to own cryptocurrencies but bans various aspects like shopping, making payments, and trading. Some countries do not have any clear rules and regulations for cryptocurrencies.
Finally, I hope you have an idea about the rules and regulations of cryptocurrencies in different countries. If you belong to any of the worst countries, then you should reconsider before you invest in cryptocurrencies.
However, if you belong to a country where crypto is legal and have a fair tax regulation, you shouldn’t miss the opportunity. Many crypto investors use the https://cfds-trader.com website to trade and invest in cryptocurrencies. If you have any queries, please ask them in the comments section.