Cryptocurrency is rapidly gaining popularity worldwide as a long-term investment option, payment method, and means of exchange. Many businesses have begun to accept cryptocurrencies as a form of payment. One of these businesses includes the giants Microsoft Corporation and Yum! Brands Inc.

For a trustworthy website on crypto trading, you can visit the Bitcoin Up platform.

Today, digital currencies are legal in most European nations, and many businesses accept them as payment. However, the treatment of cryptocurrencies by governments across Europe still varies. Other countries may have already passed regulations regarding crypto, while others may have remained to ban its usage. According to Statista (2021), Switzerland and Germany have been included in the top 11 countries, having a significant crypto adoption rate. We will further discuss these two countries below.

In this article, we will explore some crypto-favorable countries in Europe this 2021.

Cyprus
 Cyprus does not yet have cryptocurrency rules in place, but the Middle Eastern Island nation welcomes numerous bitcoins and blockchain businesses. Bitcoins and other cryptocurrencies have found their way into everything from casinos to initial coin offerings (ICOs). Also, people in Cyprus utilize Bitcoins in their daily lives, not only companies.

Cyprus Securities and Exchange Commission (CySEC) issued Circular C417 on November 25, 2020, entitled "Prudential Treatment of Crypto Assets and Enhancement of Risk Management Procedures Associated with Crypto Assets." The Circular's goal is to guarantee that Cyprus Investment Firms (CIFs) have appropriate coverage for their bitcoin investments and that the risks connected with cryptocurrency trading are adequately managed.

Denmark
 In Denmark, cryptocurrencies are legal and free from value-added tax (VAT), as they are treated as financial instruments and capital property. For cryptocurrencies, the government has particular restrictions in the form of anti-money laundering legislation.

The Tax Authority announced in January 2019 that it intends to collect tax information from cryptocurrency dealers to assess if their clients are paying their tax responsibilities. According to the Finnish Financial Authority (FFA), over 3,000 Danish people purchased or traded bitcoins, excluding other cryptocurrencies.

Estonia
 Many crypto-based companies want to establish their businesses in this country, plus the fact that there are several Bitcoin ATMs. In Estonia, ICOs are served with the best regulatory environment as long as they are safe and secure. People also do not have to pay VAT. Also, its local government is planning on a great initiative to create a crypto token called "Estcoin."

Germany
 This country is considered to be an ideal country for crypto trading and investing. Cryptocurrency is classified as "private money" by the German government. They are free from long-term capital gains tax and are not subject to VAT during transactions. Therefore, if a person sells their Bitcoins within a year, capital gains tax will only be levied if the value exceeds 600 euros. However, this restriction only applies to local investors. When it comes to cryptocurrencies, businesses are still liable to corporate income tax.

Providers of bitcoin ATMs are also subject to regulations, as they must seek authorization to put the machines in public areas. Currently, there are 52 cryptocurrency ATMs in the country.

Malta
 Despite its local banks not being involved with the crypto industry, the Maltese government has actively supported the development and usage of cryptocurrencies. The local government has also established a national Blockchain Strategy Taskforce to counsel on a framework for blockchain technologies employed in companies and start-ups. The country has also been known as "Blockchain Island."

Slovenia
Cryptocurrency is treated as a virtual currency by the Slovenian government. As a result, it may be used to exchange products and services. Another advantage is that cryptocurrency mining is exempt from VAT. Individual investors are also exempt from paying taxes on profits earned from trading owing to market changes.

Switzerland
 One of its cities is famous for being an established hub for cryptocurrencies and fintech start-ups-the city is called Zug, also named "Crypto Valley." Cryptocurrencies are seen as assets by the Swiss Tax authority, making it legal to trade these for various activities. In 2018, the municipality of Chiasso began accepting bitcoin as tax payments for up to CHF250. In the same year, the Swiss Financial Market Supervisory Authority (FINMA) developed regulations for ICOs.

This year, Switzerland's Crypto Valley has already begun taking cryptocurrency for tax payment.