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Azerbaijan vs Palau

Crypto regulation comparison

Azerbaijan

Azerbaijan

Palau

Palau

Partially Regulated
Legal

Azerbaijan has no specific cryptocurrency legislation but crypto is not banned. Crypto profits are taxable at 14% income tax. The Central Bank is drafting a comprehensive digital asset framework expected by end of 2025, modeled on international best practices. A regulatory sandbox is being developed.

Palau has explored blockchain technology and launched a stablecoin program in partnership with Ripple. No income or capital gains tax.

Tax Type Income
Tax Type No tax
Tax Rate 14%
Tax Rate 0%
Exchanges Yes Yes
Exchanges Yes Yes
Mining Yes Yes
Mining Yes Yes
Regulator Central Bank of Azerbaijan
Regulator Financial Institutions Commission
Stablecoin Rules No stablecoin regulation
Stablecoin Rules No specific stablecoin regulation
Key Points
  • No specific crypto legislation; operates in legal gray area
  • Crypto profits taxable at 14% income tax
  • Central Bank drafting comprehensive digital asset framework
  • Manat is the only legal tender per 1995 Constitution
  • Regulatory sandbox being developed for virtual assets
Key Points
  • Exploring national stablecoin in partnership with Ripple
  • No income or capital gains tax
  • Uses the US dollar as official currency
  • Small but forward-looking approach to digital assets
  • Limited domestic crypto infrastructure