In a recent report published by CoinCub, the UAE ranked 4th in the third quarter of 2022 as the most favourable crypto economy globally. Germany ranked 1st place, followed by Switzerland at 2nd place, then Australia in 3rd. USA ranked 7th globally.
The crypto economy rankings compiled by Coincub looked into various factors such as favorable crypto outlook, clear crypto tax rules, more transparent regulatory communications and more to rank countries.
As per the report, Germany although not a tax haven, is considered one of the strongest all-around ‘traditional-tax’ crypto economies that reward long-term crypto holders. German law charges zero tax on crypto holdings of over a year.
Switzerland ranked second with its positive crypto regulatory stance and is home to some of the top crypto organizations in the world.
Australia has shown a great appetite for crypto and the government has been equally supportive of it over the past year, pushing positive crypto legislation along with reasonable tax policy.
As per the report the UAE has enormous tax advantages and rises up on their list from 18 in Q2 2022 to 4 due to rapid turn around on all things crypto. UAE has a government driving it towards becoming the leading crypto economy in the Middle East with the prospect of zero taxes to pay on crypto gains for those located within the UAE’s zero tax zone.
Singapore, on the other hand, has established itself as a crypto powerhouse in Asia, with a significant chunk of the population involved in crypto trading and investment.
The U.S dropped to the seventh spot due to its unfavourable crypto tax policy and lack of clarity on the regulatory end. However, the report highlighted that the U.S is the only country to allow crypto to form part of strategic workplace pensions. With some key crypto regulations legislature under work, the U.S could see a significant improvement in its rankings by next quarter.
In terms of growth the USA added over 100 new crypto-related companies, with the UK adding 21, Singapore 13, and Switzerland 10 in Q3 of 2022. The world also saw the addition of some 540 new crypto coins, 52 crypto exchanges of which 43 are decentralized, and 233 new crypto companies.
US still leads the top of crypto economies overall, followed by Singapore.
