Singapore emerges as top crypto hub; Switzerland, UAE follow suit

Singapore leads the pack as the top crypto hub across the world, with a score of 50.2 out of 60, or 83.76%, the latest report by London-based investment migration consultancy Henley & Partners shows. Singapore has topped the chart because of its government’s close cooperation with all actors — banks, businesses, and the public – for the development of the crypto sector, the report says.

The index is designed to assess and rate crypto-friendly investment migration host countries based on their level of adoption and integration of crypto and blockchain.

Notably, India does not find mention in the list because of regulatory uncertainty over the domestic crypto industry. They are not currently recognised as legal tender in the country. The central leadership has reiterated its stand time and again, calling for international regulations to curb crypto due to fears over its misuse for illicit activities globally.

Henley's Crypto Adoption Index measures countries on over 750 data points, within six main parameters comprising 19 sub-parameters and 29 indicators.

The index relies on a wide range of data sources, including the World Bank and official government statistics.

The six parameters based on which the countries have been measured are public adoption, infrastructure adoption, innovation and technology, regulatory environment, economic factors, and tax-friendliness.

Switzerland sits in 2nd place (78.17%), with its well-established crypto infra, robust legal framework, and reputation for privacy and security, followed closely by the UAE in 3rd place at 76.17%.

The UAE has also been appreciated for offering favourable tax policies and a high level of economic stability.

“In terms of the tax-friendliness parameter, Singapore and the UAE score a flawless 10 out of 10 on the Henley Crypto Adoption Index.”

Hong Kong (4th on 76%), the US (5th on 73.83%), Australia (6th on 71.83%), and the UK (7th on 71.17%) – all list among the top countries when it comes to crypto adoption.

Canada (8th on 67.33%), Malta (9th on 64.83%), and Malaysia (10th on 62.5%) all make it into the top 10 countries hosting the most appealing investment migration program options for crypto investors.

The UAE and Singapore again share the leading position when it comes to public adoption, which measures the level of awareness, interest, and engagement with cryptocurrencies in the general population, with each scoring 7 out of 10 for this parameter.

However, when it comes to infra adoption, the US currently tops the chart with a well-developed infrastructure that supports smoother crypto adoption.

India, meanwhile, has introduced a 30% tax on income from crypto transactions and a 1% Tax Deducted at Source (TDS) on transactions above a specific threshold. These measures, says the government, aim to promote fiscal transparency while accommodating the evolving nature of digital currencies.

The Henley crypto wealth report also reveals there are 88,200 crypto millionaires worldwide, with just under half (40,500) holding their fortunes in Bitcoin, and the total market value of crypto is now a staggering $1,180 billion.

The report says there are 425 million individuals globally who own crypto assets, with 182 crypto centi-millionaires (high-net-worth individuals (HNWIs) with crypto holdings of $100 million) 78 of whom are Bitcoiners, while six of the world’s 22 crypto billionaires have amassed their fortunes from trading Bitcoin.