The Most Crypto-Unfriendly Countries in 2025
Europe is often perceived as a crypto-friendly region. Crypto holders admire countries such as Germany or Switzerland, countries that lead not only in Europe but also globally as the most crypto-friendly. But on the other hand, there are also European countries ranked among the least crypto-friendly states, and their position is relatively high even in the global context.
China: The global leader in crypto bans
It is no surprise that, according to Nomadcapitalist.com, China is ranked as the least crypto-friendly country in the world. [1]
In September 2021, the People’s Bank of China banned all crypto transactions and payments. The government justified this decision by pointing to crypto mining’s negative effect on the environment, as well as the risk of fraud and money laundering. Interestingly, before the ban, China had been one of the global leaders in crypto mining.
The future of crypto in China has long looked bleak, but China’s State Council is currently considering allowing yuan-backed stablecoins, which could signal a potential softening of its strict stance. [2]
Other countries that share China’s complete crypto-ban stance include Bangladesh, Egypt, Morocco, Iraq, and Algeria.
The Netherlands: High taxes instead of bans
Germany’s western neighbor the Netherlands presents quite a contrast. While Germany is celebrated as on of the most crypto-friendly countries in Europe, the Netherlands finds itself on the opposite side of the spectrum.
Two main reasons stand out. First, cryptocurrencies are classified as assets and subject to the same taxes as other assets. Second, the country applies relatively high taxation on crypto: income tax, wealth tax, and gift tax all apply.
Moreover, the Netherlands taxes crypto under Box 3, applying a 36% rate on a deemed (forfaitary) return on assets, which makes it far from a crypto tax haven.
Japan: One of the world’s most complex tax systems
Japan is considered one of the most complicated countries for crypto taxation.
Crypto profits are taxed as miscellaneous income, with progressive rates of 5–45%, plus around 10% local tax. This brings the maximum effective burden to about 55%.
Unlike many countries where capital gains taxes apply, Japan requires investors to pay miscellaneous income tax on crypto exchanges or transactions. Since income tax rates are already higher than capital gains tax in Japan, this system hits crypto investors especially hard.
India: Strict taxes, but hopes for future relief
In 2022, the government of the most populous country in the world introduced a 30% tax on income from crypto and all other virtual assets, without deductions or exemptions.
While many crypto users were disappointed, others have voiced support for the official regulation of cryptocurrency in the country. The high tax rate will likely discourage new entrants into India’s crypto market. Still, many veteran users remain hopeful that the government might soften its stance once it recognizes the potential revenue opportunities.
Albania: Missed potential in Europe
Albania, one of Europe’s least developed economies, has weakened its potential to become an attractive crypto hub.
Since 2023, private investors are required to pay taxes on profits from crypto trading. Additionally, profits from crypto businesses are taxed at the regular business tax rate. Private investors are also required to pay 15% capital gains tax on profits from crypto trading.
This decision may discourage foreign investors and weaken Albania’s chances of positioning itself as a crypto-friendly country in the Balkans.
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