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What are the Best Countries for Crypto Investors in 2022?

Are you considering packing your bags and venturing to a cryptocurrency haven? Well, look no more; this premier will give you some insight on the right direction to take. 2021 was a year of incredible highs for the digital market. Bitcoin hit several new high prices during the year, and more tech-based and financial institutions invested in the coin. Additionally, Ethereum experienced all-time highs in 2021, hitting over $ 4,800 in November.

So, what makes a country “best” for crypto investors?

For a country to appear in this list, we will consider two critical parameters:

1. The degree of taxation on cryptocurrency
2. Laws and regulations related to cryptocurrency.

Some countries have taken a hard stance on cryptocurrencies; a case in point is the recent proposal by the central bank in Russia to ban the use and mining of cryptocurrency. In some countries, the level of taxation on capital gains on cryptocurrency gives you a reason to run.

Most countries have increased their enthusiasm for cryptocurrency and are now suitable for investors. You may want to consider the following cryptocurrency hotspots in 2022.

#1 Portugal

Portugal has taken a soft stance on cryptocurrency investment as far as taxation is concerned. Moreover, the laws regulating the trading and investing in digital coins are very friendly. While here, you will not be charged any tax from capital gains arising from the sale or purchase of cryptocurrency. Further, no tax is charged to the gains made in exchanging cryptocurrency for other currencies in Portugal.

The tax authorities in Portugal have been quoted saying that “an exchange of cryptocurrency for ‘real’ currency constitutes an on-demand, VAT-free exercise of services.”

Notably, though, the tax treatment given to individual investors is different from what companies which deal with cryptocurrency get. Normal capital gain taxes are applied for companies that receive payment in cryptocurrency.

In a nutshell, Portugal is favorable to individual investors as companies may not benefit from tax exemption.

In Portugal, the citizenship and residency laws are equally flexible, making it easy for crypto investors to move to the Iberian Peninsula.

#2 United States

The United States has seen massive crypto adoption and recognition in the recent past and will most likely continue in this trajectory in 2022.

Surveys conducted in the last 5 years indicate that the interest in cryptocurrency among Americans has grown by over 3000%. Notably, about 6% of Americans use or own crypto, and the figures are on an upward trend. Most people have entrusted their hard-earned money to cryptocurrency. In places like Miami, the crypto movement is unstoppable. The city mayor, Francis, notes that Miami will be the “cryptocurrency innovation hub” in the U.S. Ultimately, the United States is set to go big on cryptos in 2022.

#3 El Salvador

On September 7, 2021, Bitcoin joined the USD as a legal tender in El Salvador. While El Salvador is a small country, this announcement meant that you can:

  • Sell bitcoin for fiat currency.
  • Trade bitcoin for another cryptocurrency.
  • Buy goods or services using bitcoin.
  • Gift bitcoin — in most countries.

By accepting bitcoin as a legal tender, El Salvador hopes to attract more people to invest in the country.

Here is the news for you as an investor- El Salvador exempts all foreign investors from paying tax on income or gains made from Bitcoin. Even better, by bitcoin being a legal tender, businesses are mandated to accept payment in bitcoin. You don’t have to look for forex dealers in El Salvador; you can pay for goods and services in bitcoin.

#4 Switzerland

Switzerland is famous for many things. In economy and finance, the country boasts of the Swiss banking standards, which are the epitome of high levels of privacy and relatively low risks. As such, most people would expect the country to have lenient laws and tax policies on cryptocurrency.

Nonetheless, Switzerland is governed by regions known as cantons, and each has its own rules of what can and cannot be done. Each of the 26 cantons has different laws and regulations on cryptocurrency. Tax may be levied on gains or transactions involving cryptocurrency in one canton, while in another, a tax exemption may be allowed. For instance, in Zurich, just like capital gains from movable private wealth are tax-free, capital gains from cryptocurrency are tax exempt. Notably, income from cryptocurrency mining attracts regular income in Zurich. In Bern canton, the regulation and tax laws are stricter, with both mining and trading of cryptocurrency subject to the regular tax.

Overall, it may be difficult to conclude if Switzerland is 100% crypto-friendly at a national level. However, on a canton level, most regions are crypto-friendly.

Irrespective of your location, be sure to conduct some due diligence and, most importantly, if you’re looking for the best trading experience, let your Friendly Exchange Partner IXFI help you on your journey.



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