A study reveals that Singapore has claimed the top position in global cryptocurrency adoption, with Hong Kong and the United Arab Emirates following closely behind.
The Henley Crypto Adoption Index 2024, released by the investment migration consultancy firm Henley & Partners, studied the state of crypto adoption in different countries.
The researchers ranked various jurisdictions based on public adoption, infrastructure, innovation and technology, regulatory environment, economic factors and tax friendliness.
From July to August 2024, the researchers collected data for 28 countries with investment migration programs. The results showed that Singapore was the top country in crypto adoption, followed by Hong Kong and the UAE.
Singapore nabs top spot in crypto adoption index
Singapore scored 45.7 out of 60 points, getting the top spot among the countries reviewed. According to the study, the country leads the globe in crypto adoption because of its business, financial and regulatory environment.
Singapore scores first in crypto adoption. Source: Henley & Partners
The researchers wrote that Singapore “fosters crypto adoption” because of its supportive banking system, significant investment and comprehensive regulations. These include the country’s Payment Services Act, which regulates services related to digital payment token service providers.
The Monetary Authority of Singapore (MAS) also led sandboxes like Project Orchid and Project Guardian to test the benefits of tokenization. The sandboxes led to Singapore’s DBS Bank adopting blockchain-powered treasury tokens and blockchain-based government grants.
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Hong Kong and the UAE follow closely
Hong Kong, China’s special administrative region (SAR), followed Singapore in second place, scoring 42.1 in the index. The region scored especially high in economic factors and its tax-friendliness. According to the study, the region cultivated an environment that promotes crypto growth “through significant public interest.”
In addition, the high business acceptance in the financial and tech sectors and advanced digital infrastructure make it easier for individuals to use and invest in crypto in the region.
Like Singapore, the Hong Kong Monetary Authority (HKMA) also hosts regulatory sandboxes to test tokenization benefits. On Aug. 28, the HKMA launched its Project Ensemble to study interbank settlement using a central bank digital currency (CBDC) and real-world asset (RWA) tokenization.
The UAE scored 41.8 in the index, almost tying with Hong Kong. When it comes to tax-friendliness, the country surpassed both Singapore and Hong Kong’s scores. The country also scored notably high in economic factors, innovation and technology.
The study said that a substantial portion of the population owns crypto, and a thriving startup scene and strong government support match the people’s enthusiasm about crypto.
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