Which country should you open your Cryptocurrency Business?

cryptocurrency

Cryptocurrencies have gained a huge importance in the recent times, especially the ‘Bitcoins’. Although, very popular, a huge lot of the society considers it to be complex.

Hence, before starting the business of cryptocurrencies, you need to have enough resources and adequate knowledge for it.

This list of crypto – friendly countries would be useful for you:

Country Should You Open Your Cryptocurrency Business

Australia

Although Australia’s major banks were hostile towards Bitcoin, the country moved to remove “double taxation” on Bitcoin, which came as good news to the local community and businesses; majorly after some Bitcoin start-ups chose to leave the country, in light of unfavourable taxation and reported bank account freezes.

Also, Australia is home to quite a few shops accepting Bitcoin payments directly, without the need for a debit card.

The country has a good number of exchanges for buying and dealing with bitcoins and other forms of cryptocurrencies such as Coinspot, BTC Markets, Bitfinex, Shapeshift etc.

By removing Bitcoins from double taxation policies, the government not only legalized Bitcoin but said it can be used just like money.

Hence, when you think of doing a business dealing with Cryptos, Australia can serve as a good choice for you.

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Estonia

The tech – friendly government of the nation provides a highly supportive legal framework to the cryptocurrency businesses.

Complete authorization is done before starting the firm. Also, the quality of a regulator is critically important as you will need to have direct interaction with them on a regular basis.

It is very easy to communicate and interact with Estonian regulators (Financial Supervision Authority and Financial Intelligence Unit), which is a great advantage. In most cases, they are willing to cooperate and assist.

Estonia is regarded as one of the world’s most advanced digital nation due to the top – graded technology it possesses. This makes it a good choice for entrepreneurs and the country has a very open attitude towards all of them.

The cost of starting the business and the rates of taxes there are also very low, for exampl, Bitcoin and altcoins are not subject to VAT in Estonia.

The country is even planning to launch its own cryptocurrency, Estcoin. Hence, these aspects make it one of the most desirable nations for doing cryptocurrency business.

Hongkong

Today, Hong Kong is seen as a favourable “hub” for cryptocurrencies for several reasons, including its legal, regulatory, corporate, and taxation framework.

Evangelists for cryptocurrencies see ICOs (Initial Coin Offerings) as a way for Hong Kong to regain its place at the forefront of the Asian, and even the global, financial services industry.

“I think Hong Kong is probably the best place in Asia to do a token sale right now,” said Jehan Chu, managing partner at Kenetic Capital, a Hong Kong based a blockchain and crypto currency investment firm.

Hong Kong’s Securities and Futures Commission issued a statement earlier this month in which it said some tokens could be treated as shares in a company and as such would be governed by securities regulation.

All the ICO companies interviewed for this article said they welcomed the clarification, saying that tighter regulation would benefit the industry by driving fake ICOs out of the marketplace. Therefore in the coming future, huge potential can be seen for cryptocurrencies in Hongkong.

Japan

Japan’s Financial Services Agency (FSA) has developed clear and fair laws to regulate digital currency exchanges which gave a push to cryptocurrency business in the country. Japan has also implemented an amendment to the Payment Service Act.

It has been referred to as the Virtual Currency Act and helps to define what bitcoin is and what it can do. The act gives the ability to both regulate and issue licenses to virtual currency exchanges in Japan.

This has helped give birth to an established bitcoin market in Japan.  Hence, when a market already exists, it is easy to go there with your own business.

It can be said ‘Tokyo may have lost its status as Asia’s financial hub, but it appears regulatory framework is being built so as to not lose its place in the cryptocurrency space’. BitFlyer, Japan’s leading bitcoin exchange has also been working closely with the Government to provide research and information about the usability of bitcoin and blockchain technology.

BitFlyer is currently developing a world-class enterprise blockchain called “miyabi” which has a speed of over 4,000 transactions per second. This situation can allow Japan to bring into its country investments in cryptocurrencies that the other countries would not able to attract.

Also Read: Patent Pendency will be brought down at Same Level as in US, Japan: DIPP

Denmark

With the tax- friendly laws, Denmark finds its place on the list of crypto-friendly countries. The chairman of the Tax Board of Denmark has stated: “We see the outcome of bitcoin transactions as a result of something purely private.

Therefore, any gains on bitcoin are tax-exempt, and losses are not deductible”. The move is seen as a step towards Denmark’s goal of making all retail transactions into digital.

The government is looking to remove every paper money by 2030.

It is easy to buy and sell Bitcoin in Denmark with the help of a number of exchanges that exist there such as Cubits, Bitstamp etc.

Denmark sees potential for blockchain technology in humanitarian aid also. A report published by the Danish Foreign Ministry, in collaboration with think tank Sustania and blockchain currency platform Coinify, investigates how blockchain technology might solve problems in providing development aid.

“Crypto and crisis is a perfect match, and aid organizations will undeniably be able to respond more quickly using blockchain-based digital money, which arrives at email-speed, safely and transparently,” said Marianne Haahr of Sustania. This makes cryptocurrency business attractive in this country.

Sweden

Sweden has gracefully embraced bitcoin and is marching at the forefront of the cryptocurrency revolution.

“Sweden is among the leaders in the global bitcoin market,” confirms Claire Ingram Bogusz, a researcher at Stockholm School of Economics specialising in bitcoin and other cryptocurrencies.

The whole country is abuzz with both bitcoin and blockchain activity. Cash usage in Sweden is declining, and as a result there has been talk of the Riksbank, the country’s central bank, introducing the “e-krona” as a complement to cash.

The bank explained in its report that an electronic currency could make society less vulnerable in a payment market run exclusively by private actors.

Thus, with such changing reforms, one can estimate the growth potential of Cryptos in the nation.

United States

Payment cards are seen as the king in the United States, and bank ATMs can be found on virtually every block.

Anyone who owns a Bitcoin debit card can easily survive on Bitcoin top – ups in the US without too many problems.

Unsurprisingly, the US hosts the highest number of cryptocurrency users and Bitcoin trading volumes in the world. Bolstered by Silicon Valley, which is home to numerous cryptocurrency, blockchain related startups, and the highest number of Bitcoin ATMs in the world, the US has been at the forefront of the digital currency space since the beginning.

This gives the entrepreneurs good reasons to open their cryptocurrency business in US.

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Netherlands

The country aims to attract banks, financial, and FinTech companies under one roof to work towards the development of blockchain solutions.

Netherlands has been working hard at embracing the digital currency bitcoin to be known as a bitcoin-friendly country. It’s clear to see that while the Netherlands may be significantly smaller than other countries but that certainly hasn’t stopped it from embracing bitcoin and the blockchain technology.

Since fears circulate London and its status as the FinTech centre following Brexit, Netherlands certainly has a great shot at claiming the top spot.

Spain

Spain is the fourth largest economy in Europe. A report released by Elconfidencial discloses that the Spanish national treasury has chosen to define Bitcoin as a convertible virtual currency that can be exchanged between users, and also can be converted into Euros, Dollars or other currency, fiat or crypto.

The report gives Bitcoin a status of money with VAT exemption. The Spanish treasury doesn’t explicitly endorse Bitcoin as money for all products and services in the wider economy, but treats it as money when the currency is exchanged.

Hence, the potential for cryptocurrencies exist in this country.

Besides the above mentioned 8 countries, there are a number of more nations which can be ready for cryptocurrency business in the coming years such as Finland, Italy, Mexico, Philippines etc.

Even our nation, India, is growing in terms of acceptance of cryptocurrencies with bitcoins gaining the major importance.

The Exchanges

After talking about crypto – friendly countries, below is a list of Cryptocurrency exchanges along with the location of their registered office.

S. No. Exchange Name Registered Office About

 

 

 

1 Coinbase San Fransisco, California (USA) Coinbase is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like bitcoin, ethereum, and litecoin.
2 Binance Shanghai, China The platform offers two options for digital currency trading- basic and advanced. The main difference between the basic and the advanced version is that the advanced one offers more-in-depth technical analysis of digital currency value over time.
3 Bittrex Las Vegas, Nevada (USA) Bittrex is a next crypto trading platform built and operated in the United States by crypto enthusiasts. The Company provides individuals and businesses with a world class experience to buy and sell cutting-edge cryptocurrencies and digital tokens
4 Coinmama Slovakia, Europe A financial service firm that makes it fast, safe and fun to buy digital currency, anywhere in the world.
5 Bitstamp Luxembourg, Europe It is one of the longest standing digital currency exchanges in the world and has consistently led the way in pioneering regulation and oversight in the industry.
6 Yobit Moscow, Russia YoBit is not a new name in the crypto world and it was introduced on the BitcoinTalk forum in 2015. The company offers many of the same features and characteristics of other cryptocurrency exchanges
7 Poloniex Delaware, USA It is a digital asset exchange offering a wide variety of digital assets. Founded in January 2014, Poloniex offers a secure trading environment and provides advanced charts and data analysis tools to its customers.
8 Bitfinex Hongkong, China Bitfinex offers liquid exchange in the world, allowing users to easily exchange Bitcoin, Ripple, Ethereum, Litecoin, Bitcoin Cash, Iota, EOS, Ethereum Classic, NEO, OmiseGO, Status, Zcash, Monero, Dash, Qtum, ETP, QASH, BTG, Streamr, YOYOW, Golem, Santiment, Eidoo, and Aventus against USD or BTC with minimal slippage.
9 Changelly Prague, Czech Republic Changelly is an instant cryptocurrency exchange providing some of the best crypto-to-crypto rates on the market. It works in over 50 cryptocurrencies
10 Gdax San Fransisco, USA GDAX offers institutions and professionals the ability to trade a variety of digital currencies like Bitcoin, Ethereum, and more on a regulated U.S. based exchange.

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For any further information regarding cryptocurrencies or businesses related to them, feel free to contact Starters’ CFO.

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