Crypto-Friendliness Trends · 2020–2026
Who’s Getting Friendlier.
Who’s Not.
Crypto-friendliness scores for 26 key jurisdictions, tracked annually. These are the countries that matter most for crypto holders: the ones people actually move to, the largest economies, and the ones making the most dramatic policy shifts. We’re expanding coverage over time.
Biggest Riser 2020–2026
Territorial tax system + hydroelectric mining. South America's sleeper pick.
Biggest Faller 2020–2026
Second-largest single-year decline ever. 30% tax, 1% TDS on every transaction, no loss offset, criminal penalties.
Crypto-Friendliness Index
Click countries to isolate · Hover for details
Hot Right Now
Countries with the strongest upward momentum. These jurisdictions are actively competing for crypto holders with better tax rates, clearer regulation, or both.
Territorial tax system + hydroelectric mining. South America's sleeper pick.
Steepest improvement in Europe. 3-year hold = tax-free, retroactive. From middling to one of Europe's most attractive.
0% personal income tax on crypto + clear regulations. Gateway to Eurasia. The biggest sleeper in our index.
Sharpest sustained rise among major financial centers. From cautious to aggressively pro-crypto in 3 years.
Slow but transformative reform: from 55% tax to proposed 20% flat rate. Longest sustained uptrend in our index.
5-year capital gains exemption to attract digital nomads. Deliberate strategy to compete with Singapore.
0% personal income tax, 0% capital gains, dedicated regulator (VARA), and FATF clearance. Near-perfect environment for crypto holders.
Foreign-sourced income exemption makes it attractive for crypto on foreign exchanges. Quiet riser.
Hold crypto for 1 year = 100% tax-free, regardless of amount. One of the best regimes in a major economy.
Falling Behind
Countries tightening the screws. Higher taxes, reduced exemptions, stricter enforcement. The trend is clear: crypto holders are leaving.
Second-largest single-year decline ever. 30% tax, 1% TDS on every transaction, no loss offset, criminal penalties.
Sharpest decline. Once Europe's crypto haven (0%), now 28% short-term tax and NHR program closed. 1-year holding exemption remains.
Steepest continuous decline. From regulatory ambiguity (effectively 0%) to 33% tax. The EU tightening playbook.
Consistent decline. CGT allowance from GBP 12,300 to GBP 3,000, rates raised. Aggressive HMRC data collection.
Proposed doubling of capital gains inclusion rate. From moderate to unfriendly trajectory.
Total ban. No legal way to hold or trade crypto in mainland China. Lowest score in our index.
The Reversals
Countries that dramatically changed direction. Some went from hostile to welcoming, others did the opposite. These are the most volatile trajectories in our index.
First country to adopt Bitcoin as legal tender. Biggest single-year jump ever, but IMF concessions partially rolled it back.
Most dramatic trajectory: deep SEC-driven decline (2021-23), then sharp reversal with ETFs and Trump pro-crypto pivot. Tax rates still high.
Sharpest decline. Once Europe's crypto haven (0%), now 28% short-term tax and NHR program closed. 1-year holding exemption remains.
V-shaped recovery. Banking ban (2021) reversed after Africa's largest crypto market proved unstoppable via P2P.
Unexpected Angles
The stories most people don’t see. Countries where the crypto narrative defied expectations, whether through political pressure, sanctions workarounds, or quiet regulatory changes.
Territorial tax system + hydroelectric mining. South America's sleeper pick.
First country to adopt Bitcoin as legal tender. Biggest single-year jump ever, but IMF concessions partially rolled it back.
Steepest improvement in Europe. 3-year hold = tax-free, retroactive. From middling to one of Europe's most attractive.
0% personal income tax on crypto + clear regulations. Gateway to Eurasia. The biggest sleeper in our index.
Sharpest sustained rise among major financial centers. From cautious to aggressively pro-crypto in 3 years.
Most dramatic trajectory: deep SEC-driven decline (2021-23), then sharp reversal with ETFs and Trump pro-crypto pivot. Tax rates still high.
5-year capital gains exemption to attract digital nomads. Deliberate strategy to compete with Singapore.
Gradual improvement under sanctions. Crypto legalized (2020), mining legalized (2024), 13-15% tax. Sanctions make crypto a lifeline.
10.77M retail crypto users (21% of population) create enough political pressure to keep delaying the 20% tax.
V-shaped recovery. Banking ban (2021) reversed after Africa's largest crypto market proved unstoppable via P2P.
Key Takeaways
The holding period loophole is spreading. Germany (1 year), Czech Republic (3 years), Australia (1 year for 50% discount), Thailand (5 years). More countries are rewarding patience over trading.
CARF will reshape the map by 2027. The first wave of automatic crypto transaction reporting goes live in 2026. Countries that competed on secrecy will now have to compete on tax rates and regulatory quality.
The US U-turn is the biggest story. From SEC enforcement to a Strategic Bitcoin Reserve in under 3 years. The +41 point swing is the largest ever among major economies.
Small countries are winning big. Georgia (+28), Paraguay (+37), Czech Republic (+28): countries most people don’t associate with crypto are quietly building the most attractive regimes.
Methodology
The Crypto-Friendliness Index is a composite score (0–100) based on: effective tax rates on individuals (40%), regulatory clarity (25%), enforcement approach (20%), and ease of compliance (15%). Scores are assessed annually using publicly available announcements and legislation. This is an editorial index for informational purposes only.
Why these 26 countries? The selection covers the jurisdictions that matter most to crypto holders considering relocation or tax planning: the major economies where most holders already live (US, UK, Germany, Japan, Australia, Canada), the established crypto-friendly destinations (UAE, Singapore, Switzerland, Hong Kong, Bermuda, Cayman Islands), countries with dramatic recent policy shifts (El Salvador, Czech Republic, Portugal, Turkey), the high-population emerging markets driving adoption (India, Nigeria, China, Thailand, Russia, South Korea), and a few under-the-radar jurisdictions worth watching (Georgia, Paraguay, Malaysia, Italy). Together they represent the full spectrum from crypto heaven to crypto hell, and the most interesting stories in between.
Work in progress. We’ll add more countries over time.