Hong Kong retains top position in crypto adoption readiness rankings for 2023

Hong Kong upheld its status as the most well-prepared region for widespread cryptocurrency adoption for the second year, followed by the US and Switzerland

By Shashank Bhardwaj

Published: Sep 18, 2023 05:43:32 PM IST

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Hong Kong has once again secured its position as the world's most crypto-ready destination, maintaining the top spot for the second consecutive year, according to a ranking by Forex Suggest. The ranking considers various factors, including crypto ATMs, pro-crypto regulations, startup culture, and tax regulations.

Hong Kong, known for its bustling metropolis on the southeastern coast of China, has solidified its reputation as the world's most crypto-ready jurisdiction. The Crypto Readiness Score (CRS), a comprehensive metric considering crypto infrastructure, accessibility, legality, and overall reach, has given Hong Kong an impressive CRS of 8.36.

Switzerland claimed second in the closely contested race, while the United States slipped to third place this year. Switzerland notably saw a remarkable 9% increase in its CRS score, reaching 8.18. In contrast, the United States experienced a 6.5% decline, dropping its score from 7.7 in 2022 to 7.25 in 2023. Several new entrants, including Slovenia, Canada, and Australia, entered the top 10.

According to the report, the Netherlands has the highest per capita enthusiasm for cryptocurrencies, while the United States has the largest network of Bitcoin ATMs globally. Taxation policies also played a pivotal role in mass crypto adoption, with twelve countries, including Germany, Panama, and Portugal, imposing a 0% tax on crypto gains for individuals. These countries are poised to attract investors and businesses seeking a tax-friendly environment.

The study's findings also underscored the diverse global approaches to cryptos, with some nations fully integrating them into the financial ecosystem while others like China have banned them to maintain control over financial markets. However, countries like Taiwan, Turkey, and Argentina have cautiously adopted cryptos, taking measured steps to navigate the digital landscape.

Hong Kong is positioning itself as a global hub for cryptocurrencies. Its crypto-friendly environment and recent regulatory measures underscore its leading role in the future of digital finance.

The Forex Suggest rankings reflect the success of the proactive approach Hong Kong has taken to regulating crypto, from its licensing framework for crypto firms to its regulatory sandbox for new web3 projects. Replication of similar regulatory measures around the world might follow sooner rather than later.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash