Did you know that there are several places in the world that accept payments in the form of cryptocurrency? That’s right, things int he world are changing and where once crypto was shunned, it’s now being embraced in different parts of the globe.
Let’s explore where this is taking place and why.
Where Cryptocurrency Payments are Allowed Today
In most of Europe, Japan, Singapore, Brazil and parts of the Middle East, businesses can accept crypto if they follow local rules for payments, tax and anti-money laundering.
In the EU, MiCA now harmonizes licensing for crypto-asset service providers, which makes it easier for gateways like BitPay or bank-backed processors to operate across borders.
Now, to be clear, that does not make crypto legal tender, but it does make acceptance practical for merchants who want to settle to fiat.
Basically, “allowed” usually means “by private agreement and through a compliant provider,” not that shops must take it.
Japan
If we take a look at Japan, it explicitly defines “crypto-assets” as payment methods not denominated in fiat that can be used to pay unspecified persons. You can spend crypto where a merchant chooses to accept it, and exchanges are licensed by the Financial Services Agency.
So if you just happen to see a “pay with BTC” sign in Tokyo, it is legal as long as the provider is registered.
Switzerland
Heading back to the EU, Switzerland is one of the most crypto-friendly places. Private spending is allowed, and public acceptance includes tax payments in Zug, which even lifted the cap for large bills.
There, paying taxes in Bitcoin feels ordinary.
United Arab Emirates
In the UAE, rules changed in 2024–2025. Merchants in the mainland are steered to licensed dirham-stablecoins under the Central Bank’s Payment Token Services Regulation, while Dubai’s VARA and Abu Dhabi’s ADGM run parallel regimes.
You will see crypto payments in sectors like real estate and travel, but they run through licensed tokens and gateways.
To sum it all up for the UAE, payments are allowed, but the token and the provider must be approved.
Brazil
Brazil recognizes “virtual assets” in law and empowers the Central Bank to regulate providers. Crypto is not legal tender, but merchants can accept it through legal, licensed platforms, and stablecoins dominate usage for payments.
It’s fully possible that this area can be expected to grow as Pix, Drex pilots and tokenization converge with licensed crypto services.
Hong Kong
Hong Kong switched on a stablecoin licensing regime on August 1, 2025. This definitely is not a blanket “pay anywhere” rule, but it lays the groundwork for compliant payments with HKD- and USD-linked tokens.
Why are Some Places Embracing Crypto Payments?
Countries take on cryptocurrencies in for different reasons. Innovation hubs like Switzerland and Singapore are wanting to attract fintech and tokenization. The EU wanted one playbook so firms can passport services and consumers get protection. The UAE wanted to channel payments into regulated stablecoins to control risk. Brazil sees strong demand for cheaper cross-border and e-commerce flows, with stablecoins already accounting for most transaction volume.
They all seem to have a similar theme as well, which seems to be: “let people pay in crypto, but do it through supervised rails.”
For consumers, that means you are usually paying a gateway that instantly converts to local currency. High-end brands are using this model too. Ferrari expanded its crypto checkout in Europe in 2024 using BitPay’s settlement.
So even big-tag purchases can be crypto-friendly without merchants holding coins.
For governments, the reason they’re eyeballing crypto is tax visibility and compliance. Frameworks like MiCA or MAS rules in Singapore push providers to collect KYC and follow Travel Rule data standards, and that makes crypto payments look more similar to card payments from a compliance perspective.
Which Banks Hold Crypto in 2025?
Traditional finance has moved from their previous stance towards “custody and service.” BNY Mellon offers digital asset custody as a G-SIB. Deutsche Börse’s Clearstream is launching custody and settlement for institutions. In Germany, Commerzbank holds a crypto custody license.
Fidelity Digital Assets custodies spot Bitcoin and Ether ETFs. In Asia, DBS provides tokenized products and digital-asset services to accredited investors.
In Brazil, Itaú and Nubank rolled out trading and custody features for clients. Swiss banks Sygnum and Amina (formerly SEBA) offer full crypto banking and custody.
Banks are not always the ones taking merchant risk, but they are increasingly safeguarding the assets behind it.
Keep this in mind though, most banks do not hold crypto on their balance sheet as currency. Instead they provide custody for clients or ETFs, or they build tokenization and settlement tools. That still supports payments because processors and treasurers can park assets with regulated custodians.
If your finance team wants bank-grade storage for coins collected at checkout, that now exists.
And institutional adoption does also shows up in filings. Large firms and banks report exposure to spot bitcoin ETFs and related products, even if they do not transact at the point of sale.
All of this points to mainstream acceptance of crypto as a means of paying for goods and services.
Is Crypto Legal Tender Anywhere in 2025?
Well, on this topic, the list is still pretty short.
El Salvador adopted Bitcoin as legal tender in 2021. And back in early 2025 lawmakers amended the Bitcoin Law after an IMF program. This removed mandatory acceptance and changed the official wording.
There are some legal analysts say legal-tender status was pretty much removed, while others say it technically remains but with voluntary acceptance.
The government continued to discuss reserve holdings. The safest takeaway for travelers is that everyday acceptance is voluntary and very far from universal.
The Central African Republic’s 2022 Bitcoin attempt was rolled back after its top court and policy shifts.
Where is Crypto Banned or Heavily Restricted?
China still continues to prohibit crypto trading and related services.
Several other countries maintain full or near-full prohibitions, including Algeria, Bangladesh, Egypt, Nepal, Tunisia and others, though lists vary by source and change over time.
The best rule-of-thumb is to always check the local rules, especially before you travel.
Country-by-Country View of Crypto Payments in 2025
| Country/Region | Can private merchants accept crypto? | Public sector acceptance | Notes |
|---|---|---|---|
| European Union (27) | Yes via compliant providers under MiCA and local law | Varies by country | MiCA is fully applicable with passporting for service providers |
| Switzerland | Yes | Zug accepts BTC/ETH for taxes, limits expanded | Very crypto-friendly |
| United Kingdom | Yes | None nationally | VAT due as with any sale paid in crypto |
| Japan | Yes | None nationally | Crypto-assets defined in PSA, exchanges licensed by FSA |
| Singapore | Yes via MAS-licensed PSPs | None | MAS tightened rules for DPT providers |
| Hong Kong | Yes via licensed providers | None | Stablecoin issuer licensing effective Aug 1, 2025 |
| UAE (mainland) | Yes, mainly via dirham payment tokens | Some gov services via pilots | CBUAE Payment Token Services Regulation in force |
| UAE (Dubai VARA, ADGM) | Yes via VARA or ADGM regimes | None | Active virtual asset frameworks |
| Brazil | Yes via licensed providers | None | Law 14,478/2022, stablecoins dominate flows |
| Germany | Yes | Some municipalities do pilots | BaFin guidance under MiCA, banks licensed for custody |
| Portugal | Yes | None | Legal to use in transactions, tax rules apply |
| Spain/France/Italy | Yes | None | Covered by MiCA; private acceptance only |
| United States | Yes in private commerce | Limited pilots in some cities | Not legal tender, ETF custody has grown |
| Canada | Yes | None | Regulated gateways and taxes apply |
| El Salvador | Voluntary acceptance | Unclear for tax after reform | Law amended in 2025, everyday use remains optional |
| China | No | No | Trading and services remain banned |
| Algeria, Bangladesh, Egypt, Nepal, Tunisia | Generally no | No | Listed among 2025 bans or near-total restrictions |
How to Actually Pay With Crypto When You Travel
Want to pay with crypto when you travel? Use a regulated processor or wallet that can convert instantly to local currency. That will help you avoid price swings and tax problems, and it is how big brands do it.
If a store says no, ask if they accept a licensed stablecoin or a crypto card that settles in fiat.
Try your best to pick jurisdictions that have clear rules and live infrastructure. In the EU, licensed gateways can operate across borders.
In Japan and Singapore, you’ll want to look for merchants connected to registered providers. In Switzerland, you will probably find the most public-sector acceptance.
Final Thoughts
Crypto payments in 2025 have come a long way from where they were only a few short years ago. Only time will tell if these payment systems expand or fizzle out.
The best way to approach these systems is to make sure they’re usable wher eyou are or where you plan to go if you are traveling. Big cities are more likely to accept crypto over smaller towns and more remote locations.
Just stick to working with a licensed gateway, settle to fiat for accounting clarity, and choose a custodian with real regulatory credentials.
Trade safely.
(Disclaimer: This article is not financial advice and is intended for educational purposes only. It is important to conduct thorough research and only invest an amount that you are comfortable potentially losing. For personalized financial advice, consult a professional.)
