5 Countries Where Small Businesses Accept Crypto in 2023
January 11, 2023
It’s no secret that cryptocurrency is becoming more and more popular each and every day. In fact, according to a Statista, the number of Bitcoins processed on a single day reached its highest value at the beginning of 2021, as more people displayed interest in cryptocurrency. Bitcoin had around 330,000 daily transactions in December 2020, reaching around 400,000 in early January 2021. This is higher than the transaction activity of other cryptocurrencies during the same time, but significantly less than of its rival Ethereum: this particular currency would be processed more than 1.1 million times per day.
This number is only going to continue to grow in 2018 and beyond as small businesses around the world begin to accept crypto as a form of payment. If you’re looking for a country where you can use your crypto to make purchases, here are five great options!
5 Countries Where Small Businesses Accept Crypto
1. United States
The United States of America is one of the most crypto-friendly countries in the world. A survey by Skynova found that nearly a third (32 percent) of the U.S. small business owners they surveyed, currently accept cryptocurrencies as payment.
Another key finding of this most recent founders’ survey, found that their preferred types of programmable money to accept as customer payment in rank order are:
- Bitcoin (58 percent)
- Bitcoin Cash (36 percent)
- Ethereum (35 percent)
- Litecoin (28 percent)
- Binance Coin (24 percent)
It’s worth noting that the percentages exceed 100 percent because multiple businesses surveyed accept more than just one cryptocurrency type.
The survey also found that the most common reasons cited by these small businesses for why they’re now accepting cryptocurrencies are:
- Major payment companies such as PayPal and Mastercard adopting cryptos (59 percent)
- Innovative companies such as Tesla making big crypto buys (50 percent)
- Acceptance by competitors was a significant motivator for business owners (46 percent)
- Customer demand for crypto funds as payment options (37 percent)
- Ongoing media reporting and coverage of the cryptocurrency industry (34 percent)
- Social media influencers with huge followings on Twitter, YouTube, and Telegram (32 percent)
Another great option for crypto-friendly countries is Canada. Canada has always maintained a positive approach toward cryptocurrencies and has already recognized it as a commodity by the Canada Revenue Agency. Bitcoin has a strong community in Canada, which has taken regulatory steps to embrace virtual currency. Many small businesses in Canada allow paying with crypto and the number of merchants will continue to increase in 2022.
Australia has declared bitcoin legal similar to the US and Canada. According to a survey conducted by Statista in 2020, around 18.4 percent of the respondents in Australia owned some cryptocurrency. The figure was an increase from 16.8 percent in the previous year. Australia has a strong regime to fight money laundering and terrorism financing. Therefore, crypto buyers are required to follow the Anti-Money Laundering and Counter-Terrorism Financing Act. Moreover, bitcoin and other cryptocurrencies are also subject to the Capital Gains Tax.
4. European Union
In, 2015, the European Court of Justice (ECJ) announced that buying and selling digital currencies in the EU is considered under the supply of services and made it exempt from value-added tax (VAT). Moreover, some EU countries such as Finland, Belgium, the UK, and Bulgaria have also developed their own initiatives to facilitate Bitcoin trading.
Additionally, to reduce the high carbon footprint of crypto-currencies, particularly of the mechanisms used to validate transactions, MEPs ask the Commission to present MEPs with a legislative proposal to include in the EU taxonomy (a classification system) for sustainable activities any crypto-asset mining activities that contribute substantially to climate change, by 1 January 2025.
According to “Global state of crypto” report 28% of people in Israel and 35% of people in the United Arab Emirates own cryptocurrency. According to PitchBook, Venture Capitalists have invested more than $27B into cryptocurrency companies around the world as of late November.
Extrapolating from the above numbers, Israeli crypto companies represent less than 4% of the total investment capital poured into the sector in 2021. The largest fund raise for an Israeli company was cryptocurrency platform Fireblocks’ $443m. Compare that to crypto-trading platform Bullish Global, the largest cryptocurrency investment this year, which pulled $10B in Q1.
Israel’s financial center and one of the world’s leading cities for startups has nineteen merchants accepting bitcoin and seven bitcoin ATMs in a population of 451,000. One can effortlessly buy and sell goods using cryptocurrencies in Israel.
The Bottom Line
There are many countries that have taken a welcoming stance towards cryptocurrencies, making it easier for small businesses to adopt them. These five countries in particular stand out as great options for those looking to do business in the crypto space. As the industry continues to grow, we can expect to see even more countries taking steps to support and embrace cryptocurrencies.