While cryptocurrency is hardly new, it’s still an evolving tech innovation responsible for generating a lot of interest and wealth over the last few years.
In its latest annual Crypto Wealth Report, consulting firm Henley & Partners analyzed statistics on more than 88,000 crypto-millionaires around the world. This report also looked at how nearly two dozen countries are adopting and regulating bitcoin and other digital currencies.
Henley & Partners used six main parameters to decide which countries are more friendly to cryptocurrency:
- Public adoption
- Infrastructure adoption
- Innovation and technology
- Regulatory environment
- Economic factors
- Tax-friendliness
Ranked by more than 670 data points across these six areas, here are the most crypto-friendly places in the world, according to the Crypto Wealth Report.
10. Thailand
This country’s Crypto Adoption Index score: 31.9 out of 60
Index parameter on which the country scored highest: Economic factors (8.6 out of 10)
Thailand is the only country that is new to the top 10 in this most recent ranking, moving up from its No. 11 spot last time. Thailand’s government supports crypto adoption, with nearly 10% of the population owning some form of cryptocurrency.
9. Canada
This country’s Crypto Adoption Index score: 32.9 out of 60
Index parameter on which the country scored highest: Economic factors (8.2 out of 10)
Although Canada has not regulated all aspects of cryptocurrency, it is creating a framework to safeguard consumers. Currently, Canada does not consider cryptocurrency a legal tender, which means it can’t be used for payments just yet.
8. Malaysia
This country’s Crypto Adoption Index score: 34.1 out of 60
Index parameter on which the country scored highest: Tax-friendliness (8.1 out of 10)
Malaysia’s beautiful beaches and warm climate aren’t the only enticing aspects of the country for investors. Its Premium Visa Program enables foreign nationals to live in Malaysia on a long-term, multiple-entry visa if they invest 1 million Malaysian ringgit (roughly $200,000 in U.S. dollars) and meet other criteria.
7. Australia
This country’s Crypto Adoption Index score: 34.6 out of 60
Index parameter on which the country scored highest: Economic factors (7.6 out of 10)
As one of the wealthiest countries in the world, according to Henley & Partners, Australia scored highest in the area of economic factors. The Australian Prudential Regulation Authority, Board of Taxation and other agencies are drafting policies to regulate and support the use of cryptocurrency for payments and investments alike.
6. Malta
This country’s Crypto Adoption Index score: 36.0 out of 60
Index parameter on which the country scored highest: Tie between tax-friendliness (7.8 out of 10) and economic factors (7.8 out of 10)
Known as “the world’s first blockchain island,” Malta was the first country to adopt regulations for operators in the cryptocurrency, blockchain and DLT (distributed ledger technology) space. These laws contain both consumer and industry safeguards, helping make Malta attractive to both investors and digital currency operators.
5. United Kingdom
This country’s Crypto Adoption Index score: 36.1 out of 60
Index parameter on which the country scored highest: Economic factors (7.9 out of 10)
The United Kingdom is working to provide a secure crypto-friendly market for investors, and a task force has been launched to investigate the possibility of a national cryptocurrency. For noncitizens of the U.K., the Innovator Founder Visa program was created to encourage business development and investment.
4. United States
This country’s Crypto Adoption Index score: 41.7 out of 60
Index parameter on which the country scored highest: Economic factors (8.4 out of 10)
Ranking high on the list for infrastructure adoption, the U.S. still does not have a unified regulatory approach to cryptocurrency.
Agencies like the Federal Reserve and the Securities Exchange Commission have taken different approaches to digital currencies, and several are working to provide consumers with a better understanding of cryptocurrency.
3. United Arab Emirates
This country’s Crypto Adoption Index score: 41.8 out of 60
Index parameter on which the country scored highest: Tax-friendliness (10 out of 10)
One of the first countries to regulate cryptocurrency purchases, the United Arab Emirates has recommended not taxing crypto business owners or individuals, according to Henley & Partners.
In recent years, the UAE has had tremendous growth in the number of jobs and licenses issued for cryptocurrency, making it an attractive place for both investors and businesses.
2. Hong Kong
This region’s Crypto Adoption Index score: 42.1 out of 60
Index parameter on which the region scored highest: Economic factors (9.8 out of 10)
With a stable, growing economic market, Hong Kong has favorable tax laws and is largely considered one of the world’s most business-friendly cities. An emphasis on consumer protection and innovation make Hong Kong a top market for crypto investors.
1. Singapore
This country’s Crypto Adoption Index score: 45.7 out of 60
Index parameter on which the country scored highest: Innovation and technology (9.5 out of 10)
Investors in Singapore don’t need to worry about paying taxes on their capital gains because the city-state does not tax this type of profit.
And with the recent passage of regulations for stablecoin, it’s also one of the first countries to establish a standardized framework for this type of digital currency.
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