The 10 Most Crypto-Friendly Places in the World

While cryptocurrency is hardly new, it’s still an evolving tech innovation responsible for generating a lot of interest and wealth over the last few years.

In a newly released Crypto Wealth Report, consulting firm Henley & Partners analyzed statistics on more than 88,000 crypto-millionaires around the world. This report also looked at how more than two dozen countries are adopting and regulating Bitcoin and other digital currencies.

Henley & Partners used six main parameters to decide what countries are more friendly to cryptocurrency:

• Public adoption
• Infrastructure adoption
• Innovation and technology
• Regulatory environment
• Economic factors
• Tax-friendliness

Ranked by more than 750 data points across these six areas, here are the most crypto-friendly places in the world, according to the Crypto Wealth Report.

10. Malaysia

This country’s Crypto Adoption Index score: 37.5 out of 60

Index parameter on which the country scored highest: Tax-friendliness (8.1 out of 10)

Malaysia’s beautiful beaches and warm climate are only part of its enticing environment. The country also offers My Second Home and Premium Visa programs to attract foreign investors and their money. Currently, only active traders of cryptocurrency are taxed in Malaysia, but that will be changing in 2024, as the country prepares to implement a capital gains tax.

9. Malta

This country’s Crypto Adoption Index score: 38.9 out of 60

Index parameter on which the country scored highest: Innovation and technology (8.0 out of 10)

Known as world’s first “Blockchain Island,” Malta was the first country to pass regulations around blockchain and cryptocurrency. The rules contain both consumer and industry safeguards, helping make Malta attractive to both investors and digital currency operators.

8. Canada

This country’s Crypto Adoption Index score: 40.4 out of 60

Index parameter on which the country scored highest: Infrastructure adoption (9.3 out of 10)

Although Canada has not regulated all aspects of cryptocurrency, it is creating a framework to safeguard consumers. Currently, Canada does not consider cryptocurrency a legal tender, which means it can’t be used for payments just yet.

7. United Kingdom

This country’s Crypto Adoption Index score: 42.7 out of 60

Index parameter on which the country scored highest: Innovation and technology (10 out of 10)

The United Kingdom is working to provide a secure crypto-friendly market for investors, and a task force has been launched to investigate the possibility of a national cryptocurrency. For noncitizens of the U.K., the Innovator Founder Visa program was created to encourage business development and investment.

6. Australia

This country’s Crypto Adoption Index score: 43.1 out of 60

Index parameter on which the country scored highest: Infrastructure adoption (9.2 out of 10)

As one of the wealthiest countries in the world, according to Henley & Partners, Australia scored highest in the area of infrastructure adoption. The Australian Prudential Regulation Authority, Board of Taxation and other agencies are drafting policies to regulate and support the use of cryptocurrency for payments and investments alike.

5. United States

This country’s Crypto Adoption Index score: 44.3 out of 60

Index parameter on which the country scored highest: Infrastructure adoption (9.6 out of 10)

Ranking high on the list for infrastructure adoption, the U.S. still does not have a unified regulatory approach to cryptocurrency. Agencies like the Federal Reserve and the Securities Exchange Commission have taken different approaches to digital currencies, and several are working to provide consumers with a better understanding of cryptocurrency.

4. Hong Kong

This region’s Crypto Adoption Index score: 45.6 out of 60

Index parameter on which the region scored highest: Economic factors (9.1 out of 10)

With a stable, growing economic market, Hong Kong has favorable tax laws and is largely considered one of the world’s most business-friendly cities. An emphasis on consumer protection and innovation make Hong Kong a top market for crypto investors.

3. United Arab Emirates

This country’s Crypto Adoption Index score: 45.7 out of 60

Index parameter on which the country scored highest: Tax-friendliness (10 out of 10)

One of the first countries to regulate cryptocurrency purchases, the United Arab Emirates has recommended not taxing crypto business owners or individuals, according to Henley & Partners. In recent years, the country has had tremendous growth in the number of jobs and licenses issued for cryptocurrency, making it an attractive place for both investors and businesses.

2. Switzerland

This country’s Crypto Adoption Index score: 46.9 out of 60

Index parameter on which the country scored highest: Infrastructure adoption (9.2 out of 10)

Switzerland’s stance on technology and innovation has helped shape the standards to which cryptocurrency is held in this country. Not to mention, Switzerland also offers unparalleled security and privacy for its customers.

1. Singapore

This country’s Crypto Adoption Index score: 50.2 out of 60

Index parameter on which the country scored highest: Tax-friendliness (10 out of 10)

Investors in Singapore don’t need to worry about paying taxes on their capital gains because the city-state does not tax this type of profit. And with the recent passage of regulations for stablecoin, it’s also one of the first countries to establish a standardized framework for this type of digital currency.