Crypto readiness has become a pivotal factor in determining a jurisdiction’s potential as a global hub for digital assets, and in this regard, Hong Kong has emerged as a frontrunner.
A new study has heralded Hong Kong as the most crypto-ready jurisdiction in the world, highlighting its proactive stance in embracing the realm of digital currencies. The city’s welcoming attitude towards digital asset investments and its forward-thinking approach to regulatory frameworks have positioned it at the forefront of the tech revolution.
Hong Kong has paved the way for digital asset companies to flourish within its borders. Recognizing the immense potential of bitcoin and blockchain technology, the city has actively attracted investments and nurtured an ecosystem conducive to their growth.
Crypto Friendly Taxation, Blockchain Startup Density Elevate Hong Kong’s Appeal
A recent study conducted by Forex Suggest, a foreign exchange education platform, reveals that Hong Kong has garnered significant appeal among investors due to its favorable tax policy.
Unlike some jurisdictions, Hong Kong does not impose capital gains tax on cryptocurrencies.
This tax advantage has made the city an enticing destination for individuals and businesses seeking to maximize their returns from investments.
Hong Kong also stands out for its vibrant blockchain startup ecosystem. The study highlights that the city boasts three blockchain startups per 100,000 people, securing its position as the second-highest in terms of blockchain startup density.
The study further indicates that the United States and Switzerland hold the second and third positions, respectively, in terms of overall crypto-readiness.
Disparity in Global Crypto ATMs and Changing Regulatory Landscape
The United States holds the top spot in total crypto ATMs, with a considerable number spread across the country. However, when analyzing the availability of these ATMs relative to the population, the density is lower compared to other nations.
This indicates that despite the significant overall count, the accessibility of crypto ATMs for US citizens is relatively modest.
Hong Kong, known for its limited land area, has managed to secure a noteworthy position in the crypto ATM landscape. With two ATMs per 100,000 people, totaling 149 ATMs, Hong Kong demonstrates a relatively higher concentration of these machines compared to the United States.
Despite making it on the list, regulatory authorities in the US have intensified their efforts to impose stricter regulations on bitcoin exchanges. These measures have prompted the cryptocurrency industry to call for more transparent and well-defined regulations to foster a conducive environment for their operations.
Consequently, several exchanges are actively quitting the US and exploring jurisdictions that offer more favorable regulatory frameworks.
-Featured image from Klook