Cryptocurrency is currently experiencing mass adoption, much like what happened with the introduction of radio, telephones, and other innovations. Some analysts predict that tokens will be adopted even faster than the internet was. While some people are already freely using and even investing in digital currencies, others continue to fear this new technology. Most countries are pondering how to integrate untraceable cryptocurrencies into their economies without allowing for financial fraud and tax evasion, while others are officially recognizing them as legal tender and accepting crypto investments in exchange for citizenship.
Countries with Direct Crypto Investments
El Salvador was the first country in the world to recognize Bitcoin. The law, which came into effect on September 7, 2021, mandates that all businesses, even small shops, accept cryptocurrency alongside the US dollar. The country does not issue its own national currency. As of 2023, El Salvador became the first country where second citizenship can be obtained through direct cryptocurrency investments into the national economy.
Countries with Indirect Crypto Investments
Portugal has long been known for its “Golden Visa” investment residency program, attracting over 30,000 applicants. Finally, in 2024, the country is taking its first steps to work with cryptocurrencies within this program. Alessandro Palombo, co-founder and CEO of Unbound Fund, whose primary asset is Bitcoin, announced that his fund has received the right to participate in the “Golden Visa” program. However, shares in the fund must still be purchased in fiat currency to qualify for residency in Portugal, and subsequently the EU. Nonetheless, innovation cannot be stopped.
The Caribbean countries are also friendly to digital currency: Antigua and Barbuda, Grenada, Dominica, St. Kitts and Nevis, St. Lucia. Their legislation allows digital assets to be accepted as proof of funds, a requirement for participation in investment citizenship programs. There is also the possibility of converting cryptocurrency to fiat for investment through an asset management company. However, direct cryptocurrency investments in exchange for citizenship, first announced in 2018, have not yet been implemented in these jurisdictions.Switzerland, a recognized international financial center, is very favorable towards digital currencies and is rapidly developing fintech services. However, it enforces strict regulations and taxes the crypto business. It is not possible to obtain residency through direct cryptocurrency investments in this country. Financially independent individuals can obtain residency by paying a fixed tax. Since 2018, more cities and cantons have permitted tax payments in Bitcoin, with the limit for such payments increasing to $1.67 million in 2023.
Another international banking center, Panama, established a legal framework for the use of cryptocurrencies with Bill No. 697 in 2022. This not only encourages companies in the crypto market and allows tax payments in Bitcoin but also permits the purchase of real estate with digital coins, and such transactions have already occurred. The government's investment residency program permits residency through real estate acquisitions. However, the cryptocurrency bill has not yet received the approval of the Panamanian president, so it’s important to stay updated on developments.
The Pacific island nation of Vanuatu, whose citizenship investment program is one of the most affordable in the world and highly sought after due to its simplified taxation, has allowed the storage and use of digital assets in the country. However, despite news from 2017, it has not yet included direct crypto investments in its citizenship program. Cryptocurrencies can be used to verify income sources, but they must be converted to fiat for investment purposes.
Singapore is widely recognized as one of the world’s most crypto-friendly countries, with a highly developed and business-friendly economy. The government has created a strong legal framework to encourage and support the crypto ecosystem, including individual entrepreneurs, startups, and multinational corporations. While investment citizenship is possible, crypto assets must first be converted to fiat.
Top Countries Accepting Crypto Investments
Thus, the ranking of countries where one can obtain citizenship or residency through investments in digital currency is as follows:
- El Salvador offers its “Freedom Visa” for direct cryptocurrency investments — either in Bitcoin (BTC) or stablecoins (USDT) — equal to $1 million USD.
- Portugal accepts investments in a cryptocurrency fund for residency, but for now in fiat. The investment amount is equivalent to 500,000 euros.
- Vanuatu grants citizenship for investments in the economy starting from $130,000 USD. Government agents will assist in converting the investor's crypto assets to fiat and will accept them as proof of income sources.
- Switzerland has assigned legal status to cryptocurrencies, classifying them as assets or property. Residency is granted to financially independent individuals upon payment of a fixed tax. The annual amount and the allowance to pay taxes in cryptocurrency depend on the specific canton’s legislation.
- Grenada is open to considering cryptocurrency as a source of income, provided there is a statement from the servicing platform. Citizenship can be obtained by converting digital currency to fiat for amounts starting from $235,000 USD.
- Singapore is at the end of the ranking, as the process for obtaining residency, and subsequently citizenship, is lengthy, and there is currently no option for direct investment in cryptocurrencies. However, it remains one of the most attractive destinations for crypto investors due to its specialized ecosystem and low taxes on digital currency.
- Dominica planned to create the world’s first national cryptocurrency, Dominica Coin (DMC), and to grant digital citizenship to its holders. While it is not yet traded on exchanges, investors can obtain citizenship for $200,000 USD.
- Panama has a residency program through real estate investments and a parallel bill allowing property purchases with cryptocurrency. However, the legislative regulations are still in process.
Countries Implementing Cryptocurrencies
An increasing number of countries are integrating digital currencies into their government ecosystems. By the end of 2023, pilot projects for Central Bank Digital Currencies (CBDCs) have been launched in 47 countries, with 15 countries in the project preparation stage, and 4 countries having already implemented the system. The adoption process is accelerating, and this can be monitored through specialized platform.
At the forefront of the European Union are Germany, Italy, and Spain. Purchases with digital coins are already permitted in El Salvador, Canada, and Ukraine. Cryptocurrencies have been legalized in the USA, the Philippines, Switzerland, and Japan. The list of countries is rapidly expanding, making the global map increasingly crypto-oriented.
