The Crypto Readiness Index, compiled by cryptocurrency software company Recap, provides a comprehensive analysis of the cities that are progressively paving the way toward the DeFi and blockchain world.
In particular, we will see, Zug has already been dubbed the “silicon valley” of Switzerland as groups of companies move into the city. Zug has emerged as the sixth largest cryptocurrency hub in the world, new research reveals.
Crypto Readiness Index: research by Recap
in order to reveal cities at the forefront of cryptocurrency readiness to entice companies and startups, Recap examined eight indicators. Among them are the number of cryptocurrency companies in each city, R&D spending as a percentage of GDP, and cryptocurrency properties.
Not only that, but it also took into account capital gains tax rates, quality of life score, specific crypto events, people doing crypto jobs and the number of crypto ATMs.
Based on this data, it follows that cryptocurrencies have grown tremendously in recent years and are becoming increasingly interconnected with regulated financial markets.
Specifically, the global use of cryptocurrencies has skyrocketed in recent years, by nearly 400 percent between 2020 and 2022, and then accelerating further in 2023. The advantages offered by cryptocurrencies, such as low cost of ownership, anonymity, and secure and fast transactions, are all influencing the growth of digital assets in global markets.
This increase in cryptocurrency use has caught the attention of cities around the world, and many have seen the investment opportunities and potential for innovation, fueling the race to be seen as cryptocurrency-friendly jurisdictions.
As the industry becomes more regulated, especially in terms of crypto taxes, some countries offer more favorable systems than others-from 0 percent on capital gains in some countries to 45 percent in others.
Recently, Rishi Sunak, former Chancellor of the Exchequer turned Prime Minister, outlined plans in April 2022 to make the United Kingdom a “global hub for cryptocurrency technology and investment” to ensure that the UK is on track to achieve this goal.
Despite volatility in the space due to the FTX crisis, cryptocurrencies are capturing the attention of major retailers, investors, and financial institutions such as Namecheap and Starbucks, which allow customers to purchase gift certificates through a Bitcoin payment platform.
The results of Recap’s analysis regarding crypto
In any case, it is not just the United Kingdom that has seen the benefits of adopting a more crypto-friendly approach, both for investors and the crypto community transfer.
In the United States, is one of the first areas to adopt stablecoins, accepting donations worth $7 million from MiamiCoin, a digital currency created by the nonprofit organization CityCoin. Miami Mayor Francis Suarez is pushing for residents to be paid in Bitcoin and pay taxes and fees in digital currencies.
Has also confirmed its commitment to developing its cryptocurrency infrastructure.
New York City
The mayor Eric Adams has said he wants to make the city the “center of the cryptocurrency industry.”
In what may be to the delight of its mayor, New York ranked third with the most number of companies specializing in the field at 843. The city plays for the cryptocurrency crown.
The Big Apple also has some of the largest investments in research and development and people working in cryptocurrency-based jobs with more than 1,400. Events are also prevalent in the city, with one of them being CryptoMondays, which is held weekly for people to share their opinions, network, and find jobs in the crypto space.
So, Recap wondered which cities are likely to be the most popular destinations for the cryptocurrency community and become a hub for cryptocurrency-related startups. In this regard, it says that with a strong financial infrastructure and a thriving startup ecosystem, London ranked first as the world’s leading crypto hub.
The city alone has 2,173 people working in cryptocurrency-based jobs, making it the highest number of people working in this sector than anywhere else.
With more than 800 cryptocurrency-based companies in the Big Smoke, there are many options for those who want to delve deeper into the world of cryptocurrency.
In addition, of all cities, London hosted the second-largest number of cryptocurrency-related events and conferences throughout the year, helping to attract and retain cryptocurrency companies.
While the U.K. capital leads the race as the world’s largest cryptocurrency hub, the study found that only 11 percent of people in England own/use cryptocurrencies, compared to 45 percent of people in Nigeria, which ranked 14th.
Comes in second place as it pushes to become the leading center for cryptocurrency and blockchain technology in the Middle East.
Following a year of multiple new laws for cryptocurrency exchanges operating in the city.
With 0% tax, Dubai is an attractive place to live for cryptocurrency investors and may be the second choice for some UK residents.
Holborn Assets revealed that 200,000 Britons currently reside in the city.
Dubai also has 772 cryptocurrency-based companies from which residents can choose when it comes to finding a career in the industry. The city also has a high quality of life with a score of 175.84, the seventh highest ever.
Singapore, Zug, Hong Kong and more: cities in the Top Ten crypto
In fourth place is another cryptocurrency tax haven: Singapore.
With 25 percent ownership of cryptocurrencies.
More than 1,000 people working in the industry and 800 cryptocurrency-based companies.
The city does not require investors to pay capital gains tax.
After the launch of the new Crypto.com arena to replace the Staples Center, Los Angeles came in fifth.
Highlighting how much more widespread the currency has become in the United States.
LA has developed a thriving cryptocurrency community in recent times, with government support.
A diverse talent pool at the state level, and also relatively high spending on research and development.
Despite having only a small percentage of the population of the other cities on the list, Zug has also emerged as a major crypto-ready city.
Known as the crypto capital of Switzerland, Zug has connected startups, companies, investors, and other interested parties to transform the city into a crypto hub.
With 0% capital gains, Zug residents have a unique opportunity to pay taxes in cryptocurrency.
Then, Hong Kong, Paris, Vancouver and Bangkok round out the top ten because of low capital gains tax.
High volume of crypto ATMs and the number of people in the cryptocurrency field.