10 Most Crypto-Friendly Countries in 2024

The most crypto-friendly countries in the world each share some common characteristics, including specific regulations that support crypto investment. Oftentimes, tax breaks or innovation hubs have also been introduced on the government level by countries seeking to encourage the development of blockchain technology within their national borders.

This article will dive into the top 10 most crypto-friendly countries in 2024, taking a set of important characteristics into account when deciding which nations make the list. Read on to learn more about the extent to which cryptocurrency is supported in different countries around the world.

How we picked the 10 most crypto-friendly countries

It can be difficult to determine which countries are the most crypto-friendly. Blockchain technology is a new development and highly disruptive in nature. Crypto assets facilitate self-custodied financial instruments by default, which poses a problem for legislators who naturally seek to protect decades-old financial regulations for the people who live under their jurisdiction.

Regardless, some countries have been more welcoming to the development of blockchain technology than others. The countries that made this list have each sought to make room for innovation in Web3 by creating the conditions, or at least freely allowing, start-ups to set up shop. Some have even gone so far as to create a fresh regulatory framework specifically for crypto ownership, allowing investors tax breaks and actively encouraging blockchain businesses to launch.

With that in mind, here are the two main considerations we had when picking the top 10 most crypto-friendly countries:

1. Welcomes crypto start-ups
2. Has a regulatory framework in place for investors and businesses alike
3. Provides tax benefits to crypto investors

The 10 most crypto-friendly countries in 2024

In this section, we’ll dive into each of the countries that made our list of the most crypto-friendly countries in 2024.

1. Dubai (UAE)

Dubai aims to become a center of Web3 commerce and has been extremely supportive of blockchain technology. As a true 21st-century settlement, Dubai is a hotbed of business and a global financial center. As part of its progressive economic policy, it aims to spearhead the evolution of the finance industry by openly welcoming crypto innovation.

The country launched the Dubai Blockchain Strategy to improve government efficiency and to support innovation and enterprise. Dubai is widely considered to be the most crypto-friendly city in the world and recently added Toncoin (TON) and XRP (XRP) to its list of recognized crypto assets that can be used by financial institutions in the emirate.

Key highlights:

• 0% income tax on all investments
• Established regulatory framework
• Allows financial institutions to use crypto assets

2. Switzerland

Switzerland is one of the most crypto-friendly countries in the world. As a world-leading financial center, the country has been proactive in establishing a regulatory framework for cryptocurrencies and openly supports blockchain innovation. The city of Zug is now known as ‘Crypto Valley’ in reference to the United States’ Silicon Valley, and part of the regulatory framework introduced by Switzerland recognizes crypto assets as a valid form of payment.

Key highlights:

• Comprehensive regulatory framework
• ‘Crypto Valley’ supports blockchain innovation
• Legally recognizes cryptocurrency as a form of payment

3. Singapore

Singapore is another country that is very friendly towards blockchain technology and crypto assets. Another modern city-state and center of global finance, Singapore, aims to support blockchain innovation and has even explored the possibility of introducing a blockchain-based central bank digital currency (CBDC).

Key highlights:

• Clear regulatory framework and proactive regulatory approach
• Supports blockchain innovation
• Exploring blockchain for CBDC

4. Malta

Often referred to as the “Blockchain Island,” Malta has been working on creating a comprehensive legal framework for blockchain and cryptocurrencies. The island offers tax benefits for individuals and businesses who either invest or deal with crypto assets, including a complete tax exemption from any capital gains earned from cryptocurrencies.

Key highlights:

• Clear and comprehensive regulatory framework
• Tax benefits for individuals and businesses
• Created new regulatory body to support blockchain innovation

5. Estonia

Estonia has been friendly toward blockchain technology and has implemented various initiatives to attract digital entrepreneurs. The country has aimed to position itself as a global leader in fintech innovation and is actively trying to digitize its economy over the course of the 21st century. As a result, Estonia has been very welcoming to the blockchain movement.

Key highlights:

• Crypto-friendly e-residency program
• Aims to actively digitize its economy
• Supportive regulatory framework offering licenses to crypto businesses

6. Gibraltar

Gibraltar has been working on creating a regulated environment for blockchain and crypto businesses and has established a comprehensive framework within that context. For crypto investors, individuals do not need to pay tax on capital gains, but crypto businesses are still subject to a 10% corporation tax on any profits made.

Key highlights:

• Comprehensive regulatory framework
• Tax benefits for investors
• Accessible licensing for crypto businesses

7. Lithuania

Lithuania has shown interest in fostering blockchain innovation and has a relatively friendly regulatory environment. The country has been proactive in establishing legislation to deal with the rapidly evolving blockchain sector, and now offers accessible licensing for businesses seeking to launch exchanges or on-chain wallets. Additionally, taxes on crypto capital gains can be as low as 5% for businesses in Lithuania.

Key highlights:

• Proactive regulatory framework
• Accessible licensing for crypto businesses
• Established program to support blockchain enterprise

8. United States

While cryptocurrency regulations can vary at the federal level, certain states in the U.S., like Wyoming, have been more proactive in creating crypto-friendly regulations. Overall, the United States is a hub for technological innovation and has, therefore, been a hotbed of crypto activity since its inception. While taxes are certainly higher in the US compared to other entries on this list, the federal government recently approved 11 Bitcoin ETFs and has, in effect, approved cryptocurrency as a valid asset class for investors.

Key highlights:

• Global hub for innovation in technology
• Some states have enacted crypto-friendly legislation
• World-leading financial infrastructure, federal approval for investing in crypto

9. Japan

Japan has established a regulatory framework for cryptocurrency exchanges, making it one of the more crypto-friendly countries in Asia. There is also a clear guideline for the initial coin offerings (ICOs) and overall, Japan is considered to have taken a progressive regulatory approach towards blockchain technology. However, income tax on crypto earnings can be as high as 55%.

Key highlights:

• Legally recognizes cryptocurrency as a form of payment
• Legal clarity for ICOs
• Progressive regulatory approach

10. South Korea

South Korea has been active in the cryptocurrency space, with a significant number of crypto enthusiasts and exchanges operating in the country. The South Korean government has launched several educational initiatives to help its population navigate the new industry safely and has implemented a regulatory framework that specifically aims to support blockchain innovation.

Key highlights:

• Government supports blockchain innovation
• Educational initiatives
• Implemented regulatory framework

The bottom line: What is the most crypto-friendly country?

As one of the fastest-growing technological movements in the 21st century, blockchain is home to an ever-changing landscape of digital assets that are secured by cryptography. This definition of cryptocurrency is intentionally obscure — it demonstrates the difficulty of categorizing crypto assets within existing regulatory frameworks for governments around the world. In simple terms, cryptocurrencies don’t quite fit into most existing legislation, which means that using specialized crypto tax accountants is advisable. 

As a result, the top 10 most crypto-friendly countries have been selected because they almost universally recognize that new financial technology needs new financial regulations. On top of that, almost every country on this list has taken a progressive approach towards supporting blockchain innovation, with some even allowing tax breaks for investors.

If you want to learn more about the specifics of different regulatory frameworks, check out the following articles: