According to the latest report conducted by rankings site Coincub, despite a tumultuous year, the crypto industry is still thriving globally, and Australia makes the podium as one of the top crypto economies in the world.
The Dublin-based sector comparison portal releases its crypto-related insights every quarter and its “Q3 2022 Global Crypto Ranking” report has just been published.
To rank countries, it compiles its data from various sources, including Chainalysis, Crystal Blockchain, ICO Bench, CBDC Tracker and many more, focusing on factors including: favourable crypto outlook, clear crypto taxation laws and transparent regulatory communications.
And the leading country? Germany, followed by Switzerland with Australia nabbing the bronze.
According to the report, despite the USA being the leading country for crypto and blockchain activity in its purest, statistical sense, it’s now dropped a handful of spots to number seven on the list. And that, says Coincub, can be put down to “onerous” crypto taxation policies that lack clear incentives for crypto investors.
“That said, the US is the first country to allow crypto to form part of strategic workplace pensions,” acknowledges the research. “Much more legislation is yet to come from the US which may change the position in Q4.”
Although it can’t compete with out-and-out tax havens, Germany grabs the top spot on Coincub’s list by virtue of it being a major world economy pushing a policy that is regarded as beneficial towards long-term crypto investment. Germany charges zero tax on crypto holdings that have been in place for more than a year. Nice.
Switzerland’s regulatory stance on crypto, meanwhile, is also regarded as highly positive. And, as Coincub points out, Zug is still regarded as “Crypto Valley” – it’s home to many of the top crypto organisations in the world (e.g. Ethereum, Cardano Foundation, Solana, Aave, Tezos and plenty more).
Australia: a top five crypto country ‘for some time’
Australia makes the top three also on the strength of the government’s signals towards regulatory clarity. No, Albo and co. are not there yet, but at least they’re showing the intent to provide clear regulations with their ongoing, intensive “token mapping” exercise.
“Australia enters the top three and has been a top five country for some time on the strength of all-around data and positive government legislation, reasonable taxes, and a government seemingly in favour of creating its own system of crypto-based payments,” reads the Coincub report.
The latter refers to the CBDC (central bank digital currency) currently being researched by the Reserve Bank of Australia in consultation with local crypto industry entities, including the likes of Blockchain APAC, Blockchain Australia and more.
The UAE, which has “enormous tax advantages” rises up the Coincub list from 18th spot last quarter thanks tp “rapid about-turns on all things crypto”.
From banning it early on, the report explains, the UAE now has a government pushing it towards being the leading crypto economy in the Middle East “with the prospect of zero taxes to pay on crypto gains for those lucky (or perceptive) enough to be located within the Emirates’ ‘zero tax zones’.”
“Crypto powerhouse” Singapore, meanwhile, comes in at fourth, partly based on its wide uptake of crypto investment among its general populace. Perhaps the only thing stopping it from usurping the likes of the UAE and Australia is the Singaporean government’s strict stance on third-party advertising of the country’s Virtual Asset Service Providers (VASPs).
You can check out the full research here, which includes data on the top crypto-curious nations (El Salvador is numero uno, followed by Nigeria); top crypto countries by activity in Q3 (USA, Singapore and UK lead); top crypto-hoarding populations (Vietnam, USA, South Africa) and more.
