Singapore becomes global cryptocurrency leader
Singapore leads global cryptocurrency adoption, according to new research published by investment advisory firm Henley & Partner. The study, called the Henley Crypto Adoption Index, shows that Singapore not only performs well on a number of criteria including public adoption, infrastructure adoption, innovative technologies, regulatory environment, economic factors and tax friendliness. , also achieved an overall score of 45.6 out of 60, ranking first.
Source: Henley & Partner Singapore ranks first in the ratings
Singapore’s ranking in the study is not surprising, largely due to the country’s well-established economic environment and clear regulation of cryptocurrencies. The Monetary Authority of Singapore (MAS) regulates digital payment services and has created an environment that encourages Bitcoin adoption through the Payment Services Act. In recent years, regulatory projects such as “Project Orchid” and “Project Guardian” have further promoted the application of blockchain technology in banking systems. For example, DBS Bank (DBS) has adopted blockchain-backed treasury tokens in the disbursement of domestic government grants.
Hong Kong and the United Arab Emirates follow closely behind
In the same study, Hong Kong ranked second with a score of 41.2. Hong Kong’s ranking is also no surprise, having been a hot spot for cryptocurrency adoption given the region’s strong economic fundamentals and favorable tax environment. The Hong Kong government announced at the "Forward 2024 Annual Meeting" on August 12, 2024, that it plans to improve its regulatory measures on digital assets in the next 18 months, which will further consolidate Hong Kong's position as a cryptocurrency center and increase the Cryptocurrency adoption rates by region.
The United Arab Emirates follows in third place with 41.8 points. The country’s government has been a strong supporter of cryptocurrencies and emerging startups. On August 16, 2024, a Dubai court recently approved the use of cryptocurrencies as a method of salary payment, a decision that has been viewed positively as it encourages more businesses to consider cryptocurrency transactions in the country.
Singapore’s leading position and its future prospects
Singapore's ranking at the top of this index is inseparable from its comprehensive infrastructure and innovative regulatory environment. At the same time, the Singaporean government has actively taken measures to promote the widespread application of cryptocurrency and blockchain technology, which has made Singapore not only a cryptocurrency-friendly country, but also a leader in the global digital financial industry.
In the future, as more countries join the competition in the cryptocurrency market, Singapore must continue to promote technological innovation and regulatory measures to maintain its competitive advantage. Other countries such as Hong Kong and the United Arab Emirates are also actively promoting their status in the cryptocurrency industry, which means that competition in the global cryptocurrency market will become increasingly fierce. These countries not only compete with each other on technological innovation and economic incentives, but also attract more companies and investors through improved regulatory policies and tax-friendly measures.
These efforts show that the future of the cryptocurrency market is full of potential and challenges, and countries will continue to seek new breakthroughs in this emerging industry. For investors and businesses, choosing a crypto-friendly country will be one of the key factors for their future success.
