I personally recommend a few countries and regions that I have researched as a foothold in - Taxation Last time, I wrote several articles about the migration of Chinese cryptocurrency enthusiasts. In terms of physical location, I have already given the answer. In Asia, Johor Bahru has the highest cost-effectiveness, Ho Chi Minh City has the best comprehensiveness, Thailand has a good transition, Japan has a very good livability, Singapore is not only expensive but also discusses living and medical costs. Address: https://(x.com)/Phyrex_Ni/status/2009535140960325771? s=20 But it's still important to pay attention to taxes. Although many friends say that they don't need to pay taxes on exchanges registered with Chinese passports, their country doesn't know. When I spend money, I just need to use USDT or OTC, and taxes have nothing to do with me. But is that really the case? The answer is negative. Taxation is not just a simple tax, but also extends to three directions: tax residency status, how to characterize encrypted income (investment, trading, or operation), and the bank compliance path for deposits and withdrawals. If any of these three directions are not handled properly, it will be very troublesome in the future. First of all, let's talk about a general principle. Many countries do not simply "tax" or "not tax", but it depends on whether you hold for a long time, engage in high-frequency trading, or have been recognized as a professional transaction or business behavior. The tax results may be completely different. 1. Malaysia (with high tax flexibility) In Malaysia's cryptocurrency taxation, is the recognition of this income as capital or income. LHDN (Malaysian Revenue Authority) has a specific law for digital currency transactions, and if they are held for the long term and used as asset allocation, there is no capital gains tax. That's also why I have always recommended Malaysia as my first stop. Malaysia does not have capital gains tax. So as a non high-frequency trader, whether it is trading stocks or currencies, there is no need to pay additional taxes. However, if the trading behavior is obvious and belongs to high-frequency trading or organized trading, it will be judged as a high-frequency trader and subject to taxation. However, the tax is cumulative and ranges from 3% to 30%. Is it okay not to pay taxes? The answer is no, because Malaysia has compliant OTC channels that can convert USDT into Malaysian Ringgit in compliance. Of course, OTC can also be achieved through exchanges such as Binance OKX. These are all fine, but if it involves large amounts of money, banks may pursue AML. If it is found to be a low-frequency transaction, there is no problem, but if it is found or judged to be a high-frequency transaction, taxes will need to be paid. Especially when being identified as a Malaysian tax resident, both KYC and AML are essential, and fines will be imposed for tax evasion. But for non high-frequency trading partners, Malaysia means they don't have to pay any taxes and can make compliant deposits and withdrawals without worrying about freezing, making their lives very convenient. In addition, if a company is registered on an exchange, profits from cryptocurrency trading in Malaysia are considered commercial income and are subject to a 24% corporate income tax. By the way, mining in Malaysia is also subject to taxation. 2. Vietnam (unclear regulation) Currently, Vietnam, like China, does not have a clear cryptocurrency tax policy and only has some drafts. Legislation has not yet been passed. However, compared to China, Vietnam is more lenient in OTC trading. Although there are no clear laws, the Vietnamese government is also considering enacting laws. However, Vietnam has licensed OTC trading that can be traded normally. It should be noted that Vietnam is cracking down on P2P and other activities, so strict KYC and AML are required. Although Vietnam currently does not have any taxes, there is a draft that is likely to be passed by 2026. Individuals are required to pay a personal income tax of 0.1% for each transaction or transfer, and businesses are also required to pay a tax of 20%. 3. Thailand (Compliance Platform Tax Reduction) The Ministerial Regulation No. 399, which will come into effect in Thailand in September 2025, stipulates that individuals who sell or transfer cryptocurrency or digital tokens through licensed digital asset exchanges, brokers, or distributors of the Thai Securities Regulatory Commission are exempt from personal income tax for five years (from January 1, 2025 to December 31, 2029). That is to say, as long as it is on a compliant exchange in Thailand, whether it is long-term holding or high-frequency trading, as long as it is an individual behavior, there is no need to pay taxes. Even on a compliant exchange, it can be exempted from 7% value-added tax, but declaration is still necessary, but no taxes need to be paid. Moreover, the Thai system is relatively stable and there are not many repeated situations. So for high-frequency trading partners, settling in Thailand would be more suitable than Malaysia, Singapore, Japan, and Vietnam. In addition, Thailand has filed criminal charges against five individuals in January 2026, accusing them of engaging in unlicensed OTC trading (public advertising, personal matching of USDT, etc.). It may seem strict, but in reality, Thailand has compliant licensed OTC channels where USDT can be directly converted into Thai baht and deposited into banks, with zero capital gains tax. However, if using non licensed OTC, a 35% tax is required. Additionally, although Thai USDT is compliant with OTC regulations, shopping with USDT is illegal. In addition, mining and DeFi in Thailand, including staking, are subject to taxation as they are not considered capital gains but rather income, with taxes ranging from 0% to 35%. To be honest, this tax cannot be avoided, but as law-abiding friends, we will not discuss it. 4. Singapore (similar to Malaysia) The plans are similar, both exempting individuals from capital gains tax for non high-frequency trading. For high-frequency trading, a tax of 0% to 24% is required, while enterprises need to pay a tax of 17%. Pledge and mining are generally free of charge, and OTC is very friendly. There is no difficulty in directly transferring USDC to new currency, and AML is required for extremely high amounts. I won't say much. 5. Japan (with a well-established and expensive tax system) Japan has a very strict cryptocurrency tax system, and the profits from cryptocurrency transactions are considered as Miscellaneous Income. This type of income is combined with other income such as wages and taxed at a progressive income tax rate of 5% to 45%. In addition, a resident tax of 10% is required, so the maximum tax rate can reach 55%. This is also why early U-cards were very popular in Japan, because the cryptocurrency tax in Japan was too high due to the heavy burden, so Japan proposed a tax reform plan in 2026. For "specific digital assets" (such as spot stocks, derivatives, ETFs, etc. that contribute to the accumulation of national wealth), it is proposed to change to a separate tax rate of 20% fixed tax (15% national and 5% local), and allow losses to be carried forward for 3 years. At present, it has not been officially implemented and may come into effect within 2026 or later. And the biggest pitfall in Japan is the unrealized profit tax on companies. Even if the tokens held by companies are not sold at the end of the fiscal year, they may still need to calculate unrealized gains based on market value and pay taxes (end of period valuation). The tax rate is around 30%. So in Japan, registering a company and holding cryptocurrency is very uneconomical, and when it comes to taxes, Japan is also the region that needs to be discussed the most. Many friends in Japan are trying their best to avoid taxes, even resorting to cash OTC. But Japan's management is very strict. Although there are compliant OTC channels, they must be declared, which means that compliant OTC requires tax reporting. Moreover, compared to Southeast Asia, Japan's OTC market is extremely inactive and even difficult to use. The reason is that the Japanese banking system has extremely strict anti money laundering policies, and frequent large transfers between personal accounts are highly susceptible to risk control. Although there are also exchanges that can provide deposit and withdrawal services, small amounts are not a big problem, but large amounts or being subject to AML by banks can also cause serious tax issues. Therefore, the biggest problem in Japan is to solve the problem of funds. I have asked many friends before, and they are forced to use cash when living in Japan. It should be noted that attempting to evade taxes by exchanging cash through private OTC transactions in Japan is a very dangerous behavior, and once caught, faces heavy penalties and criminal responsibility. Finally, it should be noted that Japan is a member of CARF, and the exchange will hand over all trading information of Japanese users to the Japanese tax department. Summary: Overall, considering the tax situation, Malaysia is still in the top tier of livable areas. Thailand, with a clear five-year tax reduction plan, is still very suitable as a transitional zone. Vietnam and Singapore, on the other hand, have unclear laws and high living costs, but their common feature is surprisingly good public security. Japan, on the other hand, is indeed more livable compared to the four regions that only have summer all year round. The cost of living and healthcare are very high, and the social structure is also very stable. However, Japan's taxes and OTC are the least friendly places for cryptocurrency users. Even with tax reforms after 2026, personal cryptocurrency taxes will still be as high as 20%. If there are already comprehensive tax considerations before going to Japan, then Japan is still a very suitable place to live. PS: Japan also has some tax tips. But still not friendly enough. Finally, I will discuss the combination of PR and tax residency next time. I believe many friends are very interested in this direction. @bitget VIP， Lower rates and more generous benefits