The mainstream adoption of cryptocurrencies has directed the amendment in the taxes of several nations; over a dozen countries are closely competing to establish themselves as a crypto hub.
A recent study by Social Capital Market notes positioned Dubai, Switzerland, and South Korea as leading crypto hubs in 2024. Dubai tops the list with a score of 79, as it has favorable regulations, favorable taxes, and other requirements to register or establish a group of businesses in the region.
Source: Social Capital Market
Dubai rules the list with regulatory clarity, no capital gain tax, fewer licensing fees, and a favorable corporate tax of 9% for income over AED 375,000. The total number of registered companies in the region has crossed the number 550, including firms like Binance, Chainalysis, and others.
This is followed by Singapore, which secured a 74.5 score out of 100, and the number of registrations of crypto-based companies is above 900.
The report states, “ Switzerland has made significant strides in the crypto space. Its city of Zug is recognized as a global crypto hub. In 2018, the economy minister, Johann Schneider-Ammann, announced his vision to make Switzerland a crypto nation.”
Further, South Korea secured a 73.5% score, becoming one of the fastest-evolving crypto hubs globally. The capital gain taxes and corporate taxes in SA are postponed till 2025.
Establishing Crypto Hubs Worldwide
The report placed Brazil at the bottom of the list with a 66.5 score out of 100, arguing that the region is working hard to establish its presence among leading hubs. The nation’s government developed a law in 2022 for crypto sectors and announced that the central bank would be the overseeing body.
With a score of 66.5 out of 100, Germany stands just above Brazil and is also termed one of the nations that use blockchain technology.
The nation has no long-term capital gains tax on crypto income for individuals or corporations, though a short-term capital gains tax ranges from 0% to 45%, depending on gains.
Most recently, Russia has made significant amendments and has joined the race of crypto hubs; in the Social Capital Market study, the nation secured 67 scores out of 100 with 70+ registered crypto-based companies headquarters.
Which Nation is Leading the Crypto Adoption List?
A report by Chainalysis published on September 11, 2024, notes that India has topped the adoption list globally, followed by Nigeria, Indonesia, and the United States.
Events such as the approval and launch of Bitcoin spot ETFs are primarily regarded as one of the primary reasons behind the surged adoption of cryptocurrencies worldwide.
Other stated reasons include the entry of traditional players, the injection of huge funds regulatory approval, and green signals from some leading global regulators.
BlackRock is one of the biggest names that debuted in the crypto market with the launch of Bitcoin spot ETF trading with a ticker IBIT. The iShares Bitcoin Trust holds 369.59k Bitcoin, followed by GBTC at 220.35k and FBTC at 178.33k.
Similar Ethereum ETFs have gained severe traction as of writing; the net total inflow was -$8.19M with a cumulative net inflow of -$561.85M.