Ranking of the world’s most crypto-friendly countries in 2024: A comprehensive comparison of regulation, taxation and development environment

Cryptocurrencies are revolutionizing the landscape of investments and digital assets, and 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 to settle down. In 2024, crypto-friendly countries are emerging rapidly around the world, and some countries stand out for their positive attitude in promoting the development of crypto enterprises.

According to socialcapitalmarkets, countries like Switzerland and Singapore have been recognized as the most friendly crypto-business environment, while countries like Estonia, Malta and the UAE 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 selected the world's ten most promising countries in the future development of crypto businesses.

Overview of national composite scores:

• Dubai (Score: 79) : Dubai is a top destination for crypto businesses with leading regulatory clarity, zero capital gains tax, 9% corporate tax, and low business license fees.

• Switzerland (Score: 74.5) : Switzerland ranks second with 900 registered crypto companies and a capital gains tax of only 7.8% for long-term investments, which is extremely favorable to investors.

• South Korea (Score: 73.5) : South Korea ranks third and plays an important role in the global encryption field.

• Singapore (Score: 72) : Singapore ranked fourth, with the government providing $8.9 million in blockchain support funds, providing strong support for crypto companies.

• Brazil (Score: 66.5) : Brazil ranks tenth, 12.5 points behind Dubai, but still maintains a strong presence in the global crypto ecosystem.

• Germany (Score: 66.5) : Germany scores the same as Brazil and offers similar policy conditions for crypto businesses.

• United States (Score: 71) : The United States leads the way in crypto adoption, with 5,968 businesses accepting cryptocurrency payments, scoring a perfect score (20/20) in this category.

• Portugal (Score: 51.5) : Portugal has 108 businesses that accept cryptocurrencies and has a high short-term capital gains tax of 28%, but offers relatively favorable conditions for long-term investors.

• Malta (Score: 59.5) : Malta’s corporate tax rate is as high as 35%, but its regulatory framework is friendly and 15 authorized crypto companies already operate there.

From the performance of these countries, we can see that government support in terms of policies, tax incentives and regulatory transparency has played a vital role in attracting crypto companies. Dubai, Switzerland, Singapore and other places have attracted many blockchain and crypto companies due to their clear policies and favorable tax conditions . Countries with large-scale markets such as South Korea and the United States have made remarkable achievements in adopting and promoting the practical application of cryptocurrencies.

Faced with the rapid development of cryptocurrencies around the world, the attitudes and policies of governments have become key factors. Whether or not these countries can formulate laws and regulations that are conducive to the development of blockchain technology and crypto businesses will determine whether they can occupy a place in the future digital economy. In the future, the rise and fall of crypto companies in these countries will provide valuable experience and demonstrations for other countries around the world. In summary, in 2024, Dubai will take the lead in the list of crypto-friendly countries, followed by Switzerland, Singapore and other places, and continue to attract the world's most dynamic crypto entrepreneurs and companies. In this global digital asset competition, whoever can formulate more open and inclusive policies will be able to take the lead in the future digital economy.

Top 10 Cryptocurrency Business Friendly Countries

1. Dubai

2. Switzerland

3. South Korea

4. Singapore

5. USA

6. Estonia

7. Italy

8. Russia

9. Germany

10. Brazil

1. Dubai (Score: 79)

• G20 member countries : 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 exceeding AED 375,000

• Number of registered crypto companies : Over 550

• Overall crypto-enterprise friendliness score : 79/100

In recent years, Dubai has gradually become a very enterprising country in the crypto field. Dubai's DMCC (Dubai Multi Commodities Center) has even set up a dedicated crypto center and provides a launch platform for companies engaged in crypto and blockchain technology. As one of the G20 member countries, Dubai has regulatory agencies such as VARA (Virtual Asset 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 impose capital gains tax on the income of crypto companies, which greatly increases its attractiveness to crypto companies. In addition, Dubai only imposes a 9% corporate tax on corporate income exceeding 375,000 UAE dirhams. Currently, there are more than 550 registered crypto companies in Dubai.

2. Switzerland (Score: 74.5)

• G20 member countries : 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-enterprise friendliness score : 74.5/100

Switzerland has made remarkable achievements in the crypto space, with the city of Zug in particular being recognized as one of the global crypto centers. As early as 2018, Swiss Minister of Economy Johann Schneider-Ammann announced his vision of turning Switzerland into a "crypto nation." The Swiss Financial Market Supervisory Authority (FINMA) provides a clear and supportive regulatory environment for crypto companies, especially in the canton of Zug, known as the "Crypto Valley," which has attracted more than 900 crypto companies to register and settle here. Switzerland has established reasonable tax rates for crypto service providers, including a capital gains tax of 7.8% and a corporate tax rate between 12% and 21%. In addition, more than 400 companies in Switzerland accept cryptocurrencies as a means of payment.

3. South Korea (Score: 73.5)

• G20 member countries : Yes

• Regulatory framework : Korea Financial Intelligence Unit (KFIU), under the Financial Services Commission (FSC)

• Legal transparency : gradually improving

• Capital gains tax : suspended (0%)

• Corporate tax : implementation postponed until 2025

• Registered crypto companies : 376+

• Overall crypto-friendly score : 73.5/100

South Korea, another G20 country, is gradually becoming a hot spot for crypto companies. Digital asset trading and services are regulated by the Korean Financial Intelligence Unit (KFIU), which is affiliated with the Financial Services Commission (FSC). Although the regulatory framework for cryptocurrencies is still under development, South Korea's efforts to create a crypto-friendly environment are significant. Crypto service companies operating in South Korea need to register with the FSC and abide by the laws it stipulates. Although the relevant regulatory framework is still developing, South Korea's supportive attitude towards the crypto industry has gradually emerged. Currently, South Korea has postponed the implementation of capital gains tax, and corporate tax regulations are scheduled to be implemented in 2025. With more than 376 registered crypto companies, South Korea is steadily developing and gradually becoming a crypto powerhouse in Asia.

4. Singapore (Score: 72)

• G20 member countries : No

• Regulatory framework : Monetary Authority of Singapore (MAS)

• Legal transparency : clear and supportive

• Capital Gains Tax : No capital gains tax

• Corporate tax : 17%

• Registered crypto companies : 100+

• Overall crypto-enterprise friendliness score : 72/100

Singapore is an important business hub, including for crypto companies. Companies need to obtain permission from the Monetary Authority of Singapore (MAS) to establish crypto businesses in Singapore. In addition, Singapore supports the industry through the Cryptocurrency and Blockchain Association to help small and medium-sized enterprises develop. No capital gains tax and a 17% corporate tax rate on taxable income have become important factors in attracting crypto entrepreneurs. Singapore currently has about 100 registered crypto companies, and the country has provided a huge grant of US$8.9 million for the research and development of blockchain technology in Southeast Asia, making it a dominant player in the crypto business sector in Southeast Asia.

5. United States (Score: 71)

• G20 member countries : Yes

• Regulatory framework : Securities and Exchange Commission (SEC), Financial Crimes Enforcement Network (FinCEN)

• Legal transparency : Transparency varies from state to state

• Capital Gains Tax : Varies by state (most are 0%)

• Corporate tax : 21%

• Registered crypto companies : 474+

• Overall crypto-enterprise friendliness score : 71/100

Cryptocurrencies are widely accepted in the United States. More than 5,000 businesses in different fields accept cryptocurrencies as a form of payment, indicating that cryptocurrencies have become an important industry in this G20 country. However, the legal clarity in the United States varies from state to state, forming a diverse regulatory environment. Many states have enacted laws that support cryptocurrencies. For example, Colorado has established a sandbox program for blockchain companies, allowing these companies to test new products and services. In terms of taxation, the United States is relatively lenient towards crypto companies. There is currently no capital gains tax on cryptocurrencies, and the corporate income tax rate is 21%. Although government licensing fees are high, such as the government fee of $176,226, the United States is still an important player in the crypto industry with its vast market and innovative spirit, and there are currently more than 474 registered crypto companies.

6. Estonia (Score: 69.5)

• G20 member countries : No

• Regulatory framework : Financial Supervisory Authority (EFSA)

• Legal transparency : clear and supportive

• Capital gains tax : 20%

• Corporate tax : 20%

• Registered crypto companies : 1200+

• Overall crypto-friendly score : 69.5/100

Estonia established strict anti-money laundering (AML) and counter-terrorist financing prevention laws between 2021 and 2022, which had a significant impact on its crypto service provider market. These laws caused many companies to abandon plans to apply for licenses, and the Financial Intelligence Unit (FIU) also revoked the licenses of nearly 482 crypto companies in 2022. Currently, only about 100 crypto companies have obtained licenses to operate in Estonia. Despite strict supervision, favorable tax conditions remain attractive to crypto companies. Estonia has no capital gains tax, but imposes a 20% withholding tax on income.

7. Italy (Score: 68)

• G20 member countries : Yes

• Regulatory framework : Ministry of Economy and Finance (MEF), Italian Securities and Exchange Commission (CONSOB)

• Legal transparency : clear but still developing

• Capital gains tax : 26%

• Corporate tax : 24%

• Registered crypto companies : 73+

• Overall crypto-friendly score : 68/100

Italy has long had no regulatory barriers for crypto companies. However, recently the country has tightened its rules and regulations when it comes to crypto businesses. The introduction of the EU's Markets in Crypto-Assets (MiCA) framework has also influenced the way the country regulates crypto service providers. Even so, Italy currently has 73 approved crypto service businesses active in the market . While the tax rate is relatively high, it is still low compared to other countries such as Australia or Japan. Italy has a capital gains tax rate of 26% and a corporate income tax rate of 24%.

8. Russia (Score: 67)

• G20 member countries : Yes

• Regulatory framework : Central Bank of Russia (CBR)

• Legal transparency : clear but restrictive

• Capital Gains Tax : No capital gains tax

• Corporate tax : 20%

• Registered crypto companies : 70+

• Overall crypto-enterprise friendliness score : 67/100

Russia, as one of the world's superpowers, has attracted crypto companies with its favorable tax policies. Russia has no capital gains tax and corporate income tax is fixed at 20%. The country recognizes cryptocurrencies as legal tender, and more than 500 companies currently accept cryptocurrencies as a means of payment. This speeds up the transaction process, ensures the security of payment data, and most importantly simplifies the operation of crypto companies in the market.

9. Germany (Score: 66.5)

• G20 member countries : Yes

• Regulatory framework : Federal Financial Supervisory Authority (BaFin)

• Legal transparency : clear and supportive for licensed companies

• Capital gains tax : 25%

• Corporate tax : 15%-30%

• Registered crypto companies : 300+

• Overall crypto-enterprise friendliness score : 66.5/100

Germany was one of the first countries to recognize the potential of blockchain technology and use it for digital transformation. The German Savings Bank Association (a network of 400 savings banks) has even developed a fintech blockchain application to facilitate cryptocurrency transactions. Germany has a supportive attitude towards cryptocurrencies and extends this support to crypto businesses. There is no capital gains tax on long-term crypto income for individuals or companies, but short-term capital gains tax ranges from 0% to 45%, depending on the income. Companies are also subject to 15% income tax. Despite the high tax rate, Germany's transparent and sound crypto regulations make it an ideal choice for crypto businesses. Currently, more than 700 companies in Germany accept cryptocurrencies as a means of payment, which further enhances business convenience.

10. Brazil (Score: 66.5)

• G20 member countries : Yes

• Regulatory framework : Central Bank of Brazil

• Legal transparency : gradually improving

• Capital Gains Tax : 15.0% – 22.5%

• Corporate tax : 0% – 27.5%

• Registered crypto companies : 19+

• Overall crypto-enterprise friendliness 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 conduct business in Brazil. In 2022, Brazil established a framework for the crypto industry and designated the Central Bank as a regulator. However, since laws and regulations are not yet fully established, this makes Brazil a less restrictive environment for businesses. However, Brazil's high tax rates make it a less ideal choice for businesses. The country imposes a maximum corporate income tax of 27.5%, while short-term capital gains taxes range from 15% to 22.5%.

From the performance of these countries, we can see that government support in terms of policies, tax incentives and regulatory transparency has played a vital role in attracting crypto companies. Dubai, Switzerland, Singapore and other places have attracted many blockchain and crypto companies due to their clear policies and favorable tax conditions. Countries with large-scale markets such as South Korea and the United States have made remarkable achievements in adopting and promoting the practical application of cryptocurrencies.

Faced with the rapid development of cryptocurrencies around the world, the attitudes and policies of governments have become key factors. Whether or not these countries can formulate laws and regulations that are conducive to the development of blockchain technology and crypto businesses will determine whether they can occupy a place in the future digital economy. In the future, the rise and fall of crypto companies in these countries will provide valuable experience and demonstrations for other countries around the world.

In summary, in 2024, Dubai topped the list of crypto-friendly countries with a leading advantage, followed by Switzerland, Singapore and other places, which continue to attract the world's most dynamic crypto entrepreneurs and companies. In this global digital asset competition, whoever can formulate more open and inclusive policies will have the upper hand in the future digital economy.