In some countries Bitcoin is banned, while in others it is legalised. As a Bitcoin investor or business, where should you go? AtoZForex conducted a research and listed its top 3 most Bitcoin-friendly countries in the world.
23 August, AtoZForex – Cryptocurrencies are not welcomed in every country with open arms. However, there are governments and countries where Bitcoin is positively encouraged, has the volume, is used in the day-to-day life or is even legalized. For investors in Bitcoin, these countries are of interested and offer opportunities to conduct businesses with existing firms or invest in a Bitcoin startup.
Is the US still a leader in Bitcoin regulation?
The US has been at the forefront, when it comes to Bitcoin. The country is not only home to the highest number of cryptocurrency users and trading volumes, but also home to the many cryptocurrency, miners and blockchain startups. Hence, it is not surprising that many other nations across the world look to the United States for guidance on the regulation of cryptocurrency.
In terms of legality and regulation, the US has been passive compared to other countries that have welcomed Bitcoin with open arms. Commenting on this case during a cryptocurrency event in April, the Executive Director of Coin Center, Jerry Brito noted that the role of the US as the Bitcoin regulatory leader is no longer a guarantee.
Moreover, Mr. Brito stated that the UK is a leading example of how a country is continuously fostering the growth of cryptocurrency. Despite losing ground on the Bitcoin regulation to other countries, the US remains one of the Bitcoin-friendly countries in the world.
See also: Bitcoin technical analysis
UK prepares for a mass-scale Bitcoin adoption?
Concurring with the comments of Jerry Brito, the UK is listed as one of the top three most Bitcoin-friendly countries in the globe. It is indeed true that the UK has been fostering the digital currency space, back on March 2014 the UK government started to treat Bitcoin as a personal asset. This means that any services or goods purchased for Bitcoin are subject to VAT. Similar to the US, profits and losses on Bitcoin must comply with capital gains tax.
Taking a further step the UK is about to initiate a blockchain technology to enhance its state institutions. Meanwhile the FCA is actively engaged with guiding firms to employ the technology. According to the director of the FCA, Chris Woolard revealed that the FCA already considers providing its seal of approval for a “small but significant number of firms”. This “Bitlicense” could be the start of UK’s mass-scale Bitcoin adoption.
Will Japan become the new Bitcoin trading superpower?
Considered as a dark horse out of the three countries in this list, Japan has recently taken the necessary efforts to regulate the digital currency space. On the 26th of May, the Japanese Diet passed a bill to regulate Bitcoin and cryptocurrencies exchange through the Financial Services Agency (FSA). One of the aims for passing this bill is to ensure a better protection of the users.
Aside, having a government that is eager to provide legal grounds for Bitcoin users and businesses, Japan experienced a surge of Bitcoin trading volumes over recent months. The spike in volumes could be correlated with the new regulatory framework for Bitcoin and virtual currencies exchange. Nevertheless, Japan is slowly becoming a leading Bitcoin hub and is the final country that complements our list of most Bitcoin-friendly countries in the world.
What do you think of this top 3? If you have any suggestions or additional insights, please let us know down in the comments section.