Germany ties with the US as the most crypto-friendly economies: report

Germany ties with the US as the most crypto-friendly economies: report

July 21, 2022

Germany and the US are jointly ranked at the top spot as the world’s most crypto-friendly economies. This is according to Coincub’s Q2 2022 Global Crypto Ranking Report. Germany maintained its top rank from Q1 2022, while the US rose from the third spot they held in Q1 2022. 

According to the report, the US scored highly on the back of recent measures to implement Federal cryptocurrency regulations. Also adding to the ranking scores for the US was the positive news that Fidelity Investments was set to allow Bitcoin to form part of American pension fund portfolios. The US ranked lowly for its state-by-state approach to crypto regulation. 

Germany scored highly on progressive crypto regulation, having a high volume of crypto holders and Bitcoin nodes and a favorable tax regime. Rounding off the top 5 crypto-friendly economies were Switzerland (3rd), Singapore (4th), and Australia (5th). Singapore was reported to have many Initial Coin Offerings (ICOs) and crypto holders. Switzerland was reported to have stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and many Virtual Asset Service Providers.

The fastest risers in crypto-friendly economy rankings were Portugal jointly with the UAE. The UAE was commended for offering licenses to exchanges and crypto companies and clear guidelines for ICOs and agencies offering crypto services. The UAE is also a zero-tax location. Portugal was rated highly for its generous tax incentive and low taxes on crypto, and the government is open to mining and crypto trading activities.

Rounding off the top 5 risers were Russia (3rd), the US (4th), and France (5th). Russia was noted for permitting trading and letting crypto mining going on. The US had many crypto investors, ATMs, Bitcoin nodes, and strong mining figures. France was noted for having a strong blockchain community, several Bitcoin nodes, and a positive bank and government outlook toward blockchain technology.

South Korea (1st) and Pakistan (2nd) were the two economies that dropped most significantly in rankings. Pakistan was rated lowly for having little or no crypto regulation. South Korea imposed licenses on crypto exchanges, and at one time, their number dropped from 60 to 4. 

Other economies that dropped in the crypto-friendly rankings were the Philippines, Mexico, Belgium, Brazil, China, and Cyprus. They were all ranked together in third place. These economies did not seem to have a clear strategy on crypto and had little or no crypto regulation in place.

Progressive crypto regulations, a favorable tax regime, a strong crypto community, and a positive government outlook on blockchain technology were common factors associated with the most crypto-friendly economies. Meanwhile, lack of clear strategy on crypto and no or little crypto regulation were common factors amongst economies that ranked lowly in the report. There are deliberate efforts by economies to position themselves as hubs for crypto innovation and development.

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