According to a recent report by Forex Suggest, a foreign exchange education platform, Hong Kong is the most crypto-ready jurisdiction in the world. The report concluded that on the basis of the number of blockchain startups per 100,000 people and the number of crypto ATMs proportional to the population.
Talking about the methodology, Forex Suggest said the report is based on data collected on a number of factors including taxes and legislation, startups using blockchain technology, and interest surrounding cryptocurrencies. Reportedly, it gave each jurisdiction a normalized score out of 10 on each of the factors and took an average across these scores for an overall score out of 10.
Notably, Hong Kong tops the list over nations like the US and UK which were marked at lower positions. Following Hong Kong, are the U.S. and Switzerland as the second and third most crypto-ready countries in the world. According to the study, investors find Hong Kong appealing as it does not tax capital gains on crypto.
In the context of individual metrics, among countries with the maximum blockchain start-ups, Hong Kong has three blockchain startups per 100,000 people, which puts it in the second spot on that list. The report suggests that Switzerland tops the list with the maximum number of blockchain startups, 12.9 per 100,000 residents or 1,128 in total.
Further, addressing the taxes, the report revealed that Hong Kong, Switzerland, Panama, Portugal, Germany, Malaysia, and Turkey have the lowest crypto taxes. The firm suggested that the reason behind this is that the profits made from cryptocurrency trading are exempted from capital gains taxes for individuals.
Regarding the proportion of crypto ATMs to people, the report suggested that Hong Kong, due to its smaller land area, has two crypto ATMs per 100,000 people, or 149 in total, putting it in the third spot among countries with the most crypto ATMs per 100,000 people. In this category, the U.S. topped the list with the maximum number of crypto ATMs, at nearly 34,000 i.e. the U.S. has 10.1 crypto ATMs per 100,000 people.
However, regulators in the U.S. have been accused of displaying an antagonistic approach and have continued to crack down on cryptocurrency exchanges, prompting the industry to advocate for clearer regulations. In response, numerous exchanges are forced to consider relocation and are exploring friendlier jurisdictions.
In pursuit of becoming a crypto hub, Hong Kong has been welcoming investments from digital assets companies. It has also set out new rules for the industry which will come into effect from June 1. It will allow licensed cryptocurrency trading platforms to offer services to retail investors while implementing measures to protect individual traders.