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Country overview

#99
Azerbaijan

Country stats

Rating Points
130
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
1%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
0
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
40
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
0
Total amount of crypto users out of the country's total population based on public data.
Taxation points
30
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
0
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
No info
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
No info
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Minor danger
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
No info
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
No info
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
No licenses exist
Good
Medium
Bad
intro

Azerbaijan, located at the crossroads of Europe and Asia, boasts diverse geography, from the Caspian Sea coastline to the Caucasus Mountains. With a population of around 10 million, it’s a cultural melting pot. The economy is heavily driven by oil and gas exports, though efforts are underway to diversify into agriculture, tourism, and technology. Azerbaijan is also investing in tech innovation, with initiatives like smart cities and a growing IT sector, positioning itself as a regional hub for modern development.

Security level

Azerbaijan is generally considered a safe country for tourists and residents, with a low crime rate compared to many other nations. The government maintains strict security measures, especially in major cities like Baku. 

Crypto Payments

The only legal tender in the country is the Azerbaijani manat.

Crypto Salaries

The only legal tender in the country is the Azerbaijani manat

Legal

The Central Bank of Azerbaijan warns about the risks of investing in cryptocurrencies, but there is currently no legal framework in place. The  Governor of Central Bank last promised to introduce regulations during a visit to Dubai. Laws that are indirectly related to cryptocurrencies include the "Law on E-Commerce," the "Foreign currency exchange policy" and the "Security Law".

However, in the end of 2024 the first crypto exchange Portamat started (1) its operations in the country based on the Central Bank's sandbox regime.

Taxation

There are three main taxes on cryptocurrency transactions in Azerbaijan:

Income from investments in crypto assets is subject to a 14% profit tax.Buying and selling cryptocurrency online is classified as e-commerce and is subject to an 18% VAT. Transactions to a foreign account are taxed at a rate of 10%.

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