Businesses that work with decentralized assets should be concerned about regulatory barriers. However, not all governments are placing obstacles in front crypto companies. The number of governments adopting a crypto-friendly position is actually increasing. Join Charity Token Homeless community
Regulations are viewed by executives as the greatest threat
The business climate in which crypto companies operate is influenced by government regulations. Recent surveys of executives in the industry show that there is little progress in this area. Venture capital firm Digital Currency Group polled 53% of CEOs and identified regulatory environments as their main enemy.
Club of Crypto-Friendly Jurisdictions is Expanded to More Countries
One quarter of managers questioned said compliance was their greatest challenge last year. A third of them stated that they were most surprised by the lack of regulatory progress in this year. The industry is more concerned about regulations that restrict the growth of cryptocurrency than hacking attacks. With policymakers calling for greater oversight of the sector, this situation could get worse.
Many countries’ existing regulations are not adequate as they do not reflect crypto-related economic activity. New regulations are often quite hostile. There are some notable exceptions, most notably in Europe like Switzerland, Estonia and Malta. These jurisdictions have established favorable regulatory frameworks that encourage more crypto companies.
Three Countries Take Positive Steps
There are more governments that have positive views about cryptocurrencies and those who work with digital assets. The crypto community has witnessed some encouraging developments in the past few months. New legislation has been adopted to create more business-friendly conditions and provide favorable tax interpretations that could save investors money.
Many consider Liechtenstein to be an integral part the growing Swiss Crypto Valley. Recently, Liechtenstein adopted a law to improve the regulatory environment for crypto-related businesses and to attract more to the German-speaking Principality. The “Token Act”, which was unanimously approved by the parliament, makes Liechtenstein a safe place for service providers that use tokenized securities and digital coins. The tiny Alpine nation hopes that it will become a major European fintech hub. Numerous companies, including those dealing with cryptocurrency, have established offices or representations in the country.
Club of Crypto-Friendly Jurisdictions is Expanded to More Countries
Businesses and investors can be put off by regulatory uncertainty. Two clarifications by Portugal’s tax authorities position Portugal as a crypto tax haven. The regulator stated that transactions related to mining should be exempted form VAT. This includes the miner’s rewards and the exchange of fiat. The agency previously stated that while cryptocurrencies can be taxed, any gains from their sale or appreciation by private individuals is not subject to taxation.
Ukraine recently elected a new generation of tech-savvy politicians. They are now also accepting cryptocurrencies. The need to legalize and regulate decentralized digital assets is gaining acceptance in government, business, and civil societies. A number of new bills have been introduced or are being finalized to achieve this goal. They will provide answers to questions about the legal status and taxation of cryptocurrency.
Slovenia is a great example of a crypto-friendly country. The authorities in Slovenia have a relaxed approach to digital currencies. Slovenian law allows you to trade and own coins. Capital gains from crypto investors are exempted from tax. A thriving crypto market has been possible thanks to government support. Eligma, one of the members of the group, is behind Elipay, a crypto payment processing platform that allows for in-shop purchases using bitcoin cash (BCH), and other major currencies. Its services are what have made the country the country with the largest number of BCH-accepting locations in the world, according to news.Bitcoin.com.
