What Do the Laws Say?
Every country has its own approach to cryptocurrency regulation. Some try to integrate digital assets into their economies, others impose taxes, and some even declare them illegal.
1. El Salvador: Bitcoin as National Currency
El Salvador made history as the first country to adopt Bitcoin as an official means of payment. In June 2021, the country’s parliament passed the Ley Bitcoin (Bitcoin Law), requiring all businesses to accept BTC as payment for goods and services.
Another important aspect—El Salvador has no capital gains tax on Bitcoin transactions, making the country a true haven for traders and investors.
2. Switzerland: Crypto Valley and the Blockchain Act
Switzerland, particularly the canton of Zug, is considered one of the most crypto-friendly jurisdictions in the world. This is home to the so-called Crypto Valley, a region that actively supports blockchain startups.
In 2021, Switzerland passed the Blockchain Act, a set of legal provisions regulating digital assets, defining the legal status of tokens, and simplifying the registration process for crypto companies. Additionally, the Swiss financial regulator FINMA has issued detailed guidelines on crypto activities—something many other countries lack.
3. Malta: The Blockchain Island
Malta officially calls itself the Blockchain Island. The country has implemented the Virtual Financial Assets Act (VFA Act), which establishes clear requirements for crypto projects, along with other regulatory acts, such as the Malta Digital Innovation Authority Act. Because of this, many major exchanges, including Binance, initially chose Malta as their base (although regulatory changes later forced the company to relocate).
How Does This Work in Practice?
Legal acts are great, but how do they function in real life?
• Ethereum Foundation, which is behind the second-largest cryptocurrency by market capitalization, chose Switzerland.
• This was a strategic decision, as the Swiss jurisdiction allows efficient collaboration with investors, fundraising through ICOs, and business operations with minimal bureaucracy.
• Binance, the world’s largest crypto exchange, was initially based in China but had to relocate due to strict regulations.
• The company first moved to Malta but later shifted operations to the UAE, where it obtained a license for crypto projects.
Even the Vatican Is Interested in Blockchain!
In 2022, the Vatican NFT Gallery project was announced, aiming to digitize religious artifacts and sell them as NFTs. This proves that the crypto industry is penetrating even the most unexpected places.
