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Why Germany and the US are the most crypto-friendly countries

According to research by Coincub, the world’s most crypto-friendly countries have been revealed — Germany and the U.S. are tied for first place, but for very different reasons.

Germany: Progressive Encryption Legislation Ranked First

The study argues that Germany has “progressive” crypto legislation, as well as a large number of investors and Bitcoin nodes. The study also praised the European country’s “favorable” tax regime, which means that as long as Bitcoin and Ethereum are held for more than a year, no capital gains will be generated. The report explains why this is such an important policy, adding: “As we’ve seen, a year is a long time in crypto affairs — but compared to rules that apply to other assets in Germany, It represents a huge incentive like buying rental property, which has to be kept for 10 years to avoid tax.”

Many countries have struggled to master crypto regulation, and the fast-moving nature of the industry means that central banks and governments often struggle to keep up. But Germany has met this challenge “head-on” with complex rules that also take into account block rewards and airdrops.

In addition, Germany has also become the most crypto-friendly country in the first quarter of 2022. Germany moved up from No. 4 in Q4 2021 to No. 1 in Q1 2022, beating former No. 1 Singapore. The growing adoption of cryptocurrencies by institutions, as well as the country’s progressive taxation of developing markets, are cited as reasons for its rise in the rankings. German institutions have embraced cryptocurrencies as viable long-term investments for savers. This stance is reflected in a series of traditional savings banks known as Sparkasse that are currently working to provide users with crypto trading and custody services. The move means its 50 million customers will be able to trade and hold bitcoin at the institution.

It is worth mentioning that as early as 2019, the German federal government reviewed and approved and released the “German National Blockchain Strategy”, which…

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