They view Cryptocurrencies as an autonomous, decentralized, and liquid form of money that ought to be free from government regulation. Given Cryptocurrency’s longevity, several nations have enacted some kind of regulatory framework for it, whether welcoming or not. The number of individuals interested in buying Crypto, trading it, or using it to launch their own businesses is growing daily.

Countries with the lowest favorable attitudes toward Cryptocurrencies are those that have either openly outlawed Cryptocurrencies or don’t permit them in public spaces such as cafés, restaurants, as well as stores. Those locations are probably best avoided if you plan on doing any serious spending with your preferred Cryptocurrency even when you’re away from home.

What Makes Countries Crypto-Friendly?

Despite appearances, there is more to this than meets the eye. Because no two nations appear to have the same Cryptocurrency law in place, “Crypto-friendly” may imply various aspects to different individuals. However, with the advent of Cryptocurrency in 2009, governments everywhere have made great strides. In light of the changing global dynamics and the potential financial benefits of Cryptocurrencies, several nations have lightened their stance against them. Certain nations are making great strides to establish themselves as leaders in the Cryptocurrency sector. However, it is to be expected that the nation offering the most generous Cryptocurrency tax advantages would be one that you aren’t familiar with.

The number of locations offering Cryptocurrency ATM withdrawals varies widely between nations. In the UAE, 152,077 persons are estimated to have some kind of Cryptocurrency. However, the sole Cryptocurrency ATM in the UAE is located in Dubai. Although, with the growing popularity of Cryptocurrencies in the region, things may soon change. The UAE Central Bank does not approve of Cryptocurrencies. However, in the so-called “financial free zones,” a number of Cryptocurrency exchanges have been approved.

Following are the 6 least Crypto-friendly countries in the world that one must have some knowledge of:

1. China

Now let us begin with China, which consistently ranks near the top in global rankings of breakthrough innovation as well as mass production. There were no further Cryptocurrency purchases or sales in China after September 2021, per a decree by the People’s Bank of China. The Chinese government claims that it banned Cryptocurrencies because of worries about the environmental impact of Cryptocurrency mining. The authorities were also deeply worried that virtual currencies will be used for illegal activities like extortion and fraud. Without any signs of a prosperous future in sight, Cryptocurrency enthusiasts would be wise to exercise caution before traveling to China.

2. Malta

It has been determined that Malta is the lowest Cryptocurrency-friendly nation in the European Union. Bitcoin may be bought and sold, mined, traded, and invested freely in Malta since the country seems to have no Cryptocurrency rules. However, the little island state lags significantly behind its European counterparts. Coinmap claims that the capital city of Valletta does not support Bitcoin purchases.

3. The Netherlands

The Netherlands, although being mostly Dutch in culture, is often recognised as a leader among the globe’s English-speaking nations. Cryptocurrencies are treated as assets as well as subject to the same taxation in the Netherlands as traditional commodities. Cryptocurrency holdings are subject to Dutch income tax, wealth tax, and gift tax with over threshold regulations. Due to the 31% tax on unrealized or hypothetical earnings, the Netherlands has made our list of nations that are not Cryptocurrency-friendly.

4. Japan

In Japan, Cryptocurrency is classified as an “asset” for tax purposes. Gains from the sale of Cryptocurrency assets are subject to a Miscellaneous Income Tax of between 5% and 45%. The highest tax rate is 55%, including the 10% Municipal tax that must be paid on top of any other rate. The unfortunate thing is that when you make a trade or swap that would normally be subject to capital gains tax, you will have to pay that tax as well as the Miscellaneous Income Tax. Just what is wrong with that? This is the reason why income tax rates in Japan are much larger than capital gains taxes. When compared to other nations, Japan’s income tax rates are extremely high.

5. India

The Indian government announced that beginning in early 2022, all Cryptocurrency and virtual asset revenue would be subject to a 30 percent tax, without any exceptions or discounts. Many Bitcoin holders are dismayed by the government’s decision, while others are relieved to finally have Cryptocurrencies governed by law. Experienced Indian Cryptocurrency users are optimistic that the government will relax its Cryptocurrency regulatory oversight in the coming years once it realizes the revenue sources it can bring. This is despite the fact that the High India Cryptocurrency tax rate will likely prevent several new members from joining the Cryptocurrency sector in India.

6. Albania

The new Cryptocurrency tax judgment in Albania mandates that individual participants begin paying taxes on Bitcoin trading profits in the upcoming year i.e. 2023. Cryptocurrency enterprises’ earnings would be subject to the standard corporate tax rate, among other levies. A similar 15% of private investors’ yearly profits will be taxed by the state.