The study found that Hong Kong is the jurisdiction best prepared for widespread adoption of crypto initiatives. The U.S. and Switzerland were also in the top three.
According to the Forex report, Hong Kong Island leads the world in the number of blockchain startups and cryptocurrencies, as well as in the level of government loyalty regarding cryptocurrency taxation. Importantly, Hong Kong is a special administrative region of the PRC with broad autonomy and is therefore considered apart from “Mainland China.”
The Forex study focused on identifying jurisdictions ready for widespread adoption of cryptocurrency initiatives. Analysts collected data on factors related to the availability of digital assets, taxes surrounding cryptocurrencies, the availability of blockchain companies, and citizen interest in virtual currencies. The data was converted into “crypto ready scores” — Hong Kong scored 8.6 out of 10.
The main factors influencing Hong Kong’s leadership:
- A total of 149 crypto ATMs operate in the country. Thus, there are two crypto ATMs per 100,000 people, and thanks to the jurisdiction’s small area, they are located no further than 7 kilometers from each other.
- Hong Kong considers cryptocurrencies a virtual commodity rather than currency, so there is no capital gains tax in the country.
- The jurisdiction is the financial hub of Asia and has three blockchain startups per 100,000 people.
- The number of Google searches from the category “cryptocurrency” in Hong Kong is 1581 per 100 thousand people in the past year.
Recall that in mid-June, the most popular search query on Google was “Bitcoin is dead,” getting the maximum score after BTC fell.
In the context of leadership, the Hong Kong University of Science and Technology recently announced plans to create virtual campuses in the metaverse for its students. The initiative will be part of the MetaHKUST project designed to strengthen the interconnection of Hong Kong and the PRC.
The United States ranked second in the list of countries most ready to implement crypto initiatives. The U.S. led the way in last year’s similar study. Now the country holds its position due to the large number of cryptocurrency ATMs. In fact, there are more than 33,700 crypto ATMs in the United States, which amounts to 10 ATMs per 100,000 people. However, each crypto ATM is at least 271 kilometers away from each other because of the large territory.
Coincub analysts named the U.S. one of the world’s most crypto-friendly countries in Q2 2022.
Switzerland comes in third place in the ranking. The country holds a high place because the state lawmaker considers cryptocurrencies a private asset and does not impose a capital gains tax on transactions. Switzerland also leads in the number of blockchain startups — 1,128, i.e., there are almost 13 crypto companies per 100,000 people. Besides, the administration of Lugano and Tether are planning to legalize several cryptocurrencies as official means of payment.
The highest interest in cryptocurrencies was recorded in Australia. The country became a leader in the number of Google searches on cryptocurrencies — more than 4,500 requests per 100,000 people last year. In March, the country’s Ministry of Home Affairs began a comprehensive study on cryptocurrencies.
The most loyal laws toward crypto are also observed in Panama, Portugal, Germany, Malaysia, and Turkey, where there are no taxes on capital gains on crypto. Indonesia came in “second place” among the countries with the most loyal laws, with its government charging private investors a 0.1% capital gains tax on their crypto profits. Chile is in “third place” with a 4% tax on private investors’ investments.
