Within the domain of cryptocurrency, nearly all countries are leading the charge of successfully utilizing it. This step of them has started to aid them slowly in providing business growth and structural support. This development has led to the movement of bases of numerous investors, developers, and ecosystem engineers in starting their new projects to these countries.
In a disruptive way, these cryptocurrency wallet development companies are developing the smaller version of silicon valleys into larger developmental cities.
This factor has also benefitted the cryptocurrencies to compete with the traditionally available currencies. Interconnected and supported blockchain development community members are the main reasons for this stunning success of cryptocurrencies. This success has made many companies to hire these members to experience such success.
Many countries have supported the use of cryptocurrencies and have legalized them. And within these countries, some of them have experienced astonishing success due to the use of cryptocurrencies.
But as every single thing has, even the use of crypto-currencies have some nuances which need correction. Most of the countries to clear out these nuances, better their infrastructure, offer a low amount of taxes and are more vigilant towards the blockchain technologies.
Now, Let’s Have A Glance at the 5 Countries Which Are More Supportive Towards the Cryptocurrencies:
Before moving on to the countries and the laws, they endorse let us analyze which is the most lucrative point for their success by using cryptocurrencies. Most of the businesses operating in these countries hire the leading cryptocurrency wallet development company available to get quality results.
The ecosystem of these companies quickly gets support due to its innovative framework. As per reports, 2019 has been a favorable year for both cryptocurrencies and blockchain communities. This factor has also been the main reason for the support of these five countries for cryptocurrency.
1. Japan: The Country which is Dominating the charge in cryptocurrencies
One of the few countries to have taken charge in the crypto space, Japan has been leading its way of success by utilizing cryptocurrencies. The market in Japan is flourished with transparency and technology, thanks to the numerous blockchain consulting firms which are based here.
Most of the Japanese banks are supporting numerous critical aspects of the movements contemplating cryptocurrency. This step has brought a high degree of regulation in the market.
Japan’s Financial Services Agency, the agency which looks after the economy of the country has brought in a change which ensures more stability in the cryptocurrency markets. This change had also brought increased transparency in operations. A legal framework named the Payment Services Act is made mandatory by the Government to register for exchanges related to cryptocurrencies.
Even in cryptocurrency markets, the agency has forced strict rules and regulations. For bestowing a better level of control and authorization in the crypto domain, an association called the Japanese Virtual Currency Exchange Association has formed. This association helps in achieving a better standard of authority. The country has relieved from many tensions, due to its formidable range of cybersecurity.
If you are a crypto-developer or have your work operations in crypto space, then Japan is the right country you are looking for. Blockchain in the country has experienced a staggering innovation just because of its thriving ecosystem. Owing to the capabilities and strength of Japan’s technology, it has led to the development of many smart contracts.
Japan has also been one of the notable disrupters for cryptocurrency, bypassing a law which accepts Bitcoin as a legal tender. Bitcoin is a type of cryptocurrency. And to lure a higher number of people towards cryptocurrencies, Japan has also eliminated the tax consumption on Bitcoin trading from April 1, 2017. Moreover, Japan has also ruled out the possibility of double taxation on Bitcoin trading.
2. Sweden: One of the Early Leaders in the Cryptocurrency Market
The country which was on one of the first countries to authorize the Bitcoin exchanges was Sweden. It had passed this rule, three years before itself. Thanks to its robust crypto ecosystem, most of the Bitcoin exchanges find shelter in Sweden. Many analysts believe that the US ETF’s are smaller compared to the Swedish ETN’s. Sweden provides significant support in the crypt-market by burgeoning the crypto space.
The country is heavily reliant on digital currency, which serves as an added factor on why Sweden adopted cryptocurrency so early. Nowadays, only a meager amount of people use currency notes, as most of them have wailed towards digital currency. This step had made the transition towards crypto markets easier.
One of the main reasons which helped in Sweden in becoming a rapidly cashless society is the involvement of the Riksbank. In Sweden, even the Government has supported the use of cryptocurrencies, which has resulted in many developers working on the contracts of developing blockchains smartly for financial services domains.
To support the appetite for Bitcoins and also for creating alternatives for protecting the capitals, the central bank has decided to cut the interest rates into the negative territory. This step of the central bank has resulted in a total shift to digital currency. Following the footsteps of Sweden, its neighbor Denmark has publicly announced Bitcoin as a legal currency.
3. Switzerland: One of the Old Horses in Crypto Markets
One of the few countries, who are pro-actively trying to regain their lost ground is Switzerland. It had started to invest in the crypto-currencies, way before the other nations had, but lost its path in mid-way. Though other countries are way ahead of it now, Switzerland has kept its sight on getting a better business out of cryptocurrencies. It has also made all types of crypto-currencies and exchanges legal all over the country.
This step has made the Government present a positive outlook over the performance of the crypto-domain in the country. The Swiss Federal Tax Administration considers cryptocurrency to be one of its assets. The administration comes with a licensing structure which is relatively transparent, whose process of registration is under the Swiss Financial Market Supervisory Authority.
For any developing cryptocurrency wallet company, the administration aids by publishing clear guidelines along with the usage of best practices. The Economics Minister of Switzerland, Johann Schneider-Ammann, is contemplating to turn Switzerland into a crypto-nation by the end of next year. The minister hopes that this positive result can be obtained by the presence of the blockchain consulting firms as well.
Home to hundreds of crypto-startups, Switzerland has helped these startups in raising millions of dollars, which have helped them in creating an innovative space. Switzerland’s financial markets regulator approved the first Swiss bank to manage the Bitcoin assets. By doing so, Switzerland has potentially paved the way for other global to offer and use products of digital currency.
4. Germany: The Country which Strongly Regulated the Growth of Cryptocurrency
Germany has emerged as an influential nation in the usage of crypto-currency because of its robust build on crypto regulation. It has founded an authority named The German Federal Financial Supervisory Authority which assists in creating strict rules and regulations regarding the usage of crypto-currency and also in its exchange.
This move of the authority has resulted in the transparency and security around the usage of crypto-currency. The administration has also directed the companies dealing with cryptocurrencies commercially to have its license. It has also made sure that all the companies should this rule compulsorily.
The prime reason why the country is emerging as a strong contender is that it imposes no restrictions to the crypto-markets in dealing with importing or exporting of crypto-currencies. Felix Hufeld, the chairman of the German Financial Regulator Authority, has also stated that the country doesn’t want to stifle with innovation. He has also opined that at the same time, they need to protect themselves from the upcoming threats.
Many developers and traders consider Berlin to be at the center of crypto markets in the EU. It is one of the top cities in the world which has a developed market and furthermore a thriving ecosystem. Both EOS and IOTA are there in Berlin and have pushed the cryptocurrency market to greater heights. Also, from a business stand-point, Berlin makes perfect sense for 2019.
As per a report released by the German Government in August 2013, it has stated that Bitcoin is treated as a trading activity and hence subjected to gains in the capital sector. The benefits are subjected to availability only if the Bitcoins hasn’t held for a year or more.
The German Federal Finance Ministry has also clarified the position of Bitcoins by treating as a separate unit of account and private money. Bitcoin has not been subjected to any sales taxes or value-added taxes by the German Government.
5. South Korea: A Country Known for its Rapid Transactions and Technology in Crypto Markets
Concerning trade volumes and trading, South Korea always makes its mark amongst the top 5 countries in the world. The state houses a broader investor community which is larger compared to its overall size. Adding to the business-friendly nature of the country, South Korea also thrives in efficiently improving its financial services and its trade market.
The Government has not dismissed the Initial Coin Offering as it was expecting in the initial days. This step of the Government shows that it had its eyes set on utilizing the crypto-market efficiently and correctly. South Korea also allows the companies under its roof to smoothly conduct the Initial Coin Offering. The Government has shown its responsibility and understood the abilities in embracing new and innovative technologies.
The Initial Coin Offering is a new trend in global crypto-market. Hence, the Government has embraced it wholeheartedly. The flow of investment to the Initial Coin Offering compared to the angel fundraising has proven the fact that Initial Coin Offering has reached new levels of success in the trade market.
As per the words of Min Byung-Doo, the head of the National Policy Committee in South Korea, Initial Coin Offering has helped in raising lots of funds to many startups. It has aided in raising 1.7 billion US dollars for Telegram and 4 billion US dollars for the startup Block.One.
When thinking about crypto-markets, the country always ensures the ease in business for using crypto-currencies by frequently taking positive steps. As of 2019, the crypto-currency predictions have foretold that South Korea will grow by a rapid margin this year.
It has also been under prediction that a more significant number of investors will be entering into the cryptocurrency markets. South Korea ranks higher, even when technology is under consideration. As a consequence of this prediction, even in global markets, everyone believes that South Korea can be a decisive player.
People can buy Bitcoins easily in South Korea, that too in 7-Elevens. The prime reason being there no laws currently in the country which regulates the usage of Bitcoin.
With regards to all the information shared above, we can clearly state that the growth in crypto-currencies has been rapidly increasing in the last decade. It also clearly justifies that there is strong momentum around this new technology, whatsoever may be the individual case of a country.