Coincub ranked Germany as the most crypto-friendly country in the world in its latest quarterly Global Crypto Rankings. The Central European country moved up two places from the previous order usurping Singapore to take pole position. This comes after a series of regulatory changes in both countries have brought contrasting fortunes to the adoption of digital assets.
New regulations cause Singapore to lose its top spot
Meanwhile, Singapore, which previously ranked number one, lost its position due to new policies implemented by the government. These new laws include restricting the advertising of crypto services by Virtual Asset Service Providers (VASPs) outside of their websites and a crackdown on Bitcoin ATMs.
Incidentally, new regulations in the southeastern country led its biggest bank, Development Bank of Singapore (DBS), to backtrack on its retail crypto plan. The DBS had launched a digital asset trading desk in 2020 to enable institutional and accredited investors to tap into the growing digital asset space. It further revealed plans to expand the service to retail customers in 2022. But those plans have now been shelved for the time being.
Singapore is currently a hotbed for crypto firms, especially after Beijing’s continued crackdown on digital assets. Its favorable laws and progressive stance led the government to enact regulations to guide the space as early as 2019. The rules of its Payment Services Act (PS Act) mainly focused on money laundering and the financing of terrorism using digital assets.
However, following the explosion in crypto adoption, the Money Authority of Singapore (MAS) has increased its overreach in the industry. It ordered digital payment token (DPT) service providers in Singapore not to promote their services to the general public earlier this year. Furthermore, he actively discouraged the retail trading of cryptocurrencies and constantly warned the general public against it.
On the other hand, German banks have shown a growing interest in providing their customers with a safe way to trade cryptocurrencies. The county’s largest thrift institution, Sparkasse, made up of individual savings banks, is set to allow retail crypto transactions. Giving 50 million users the ability to buy, sell and hold Bitcoins. It is also exploring the possibility of providing custody services to Germans through a crypto wallet.
Besides its unique institutional position on digital assets, the number of Bitcoin nodes in Germany is second only to the United States. It has also implemented a progressive taxation policy towards crypto compared to other countries. The combination of all these elements earned it a score of 8.1 in the crypto country rankings and became the most crypto-friendly country in the world.
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Interesting Twists in the Top Ten Global Crypto Rankings
The top ten in the global crypto rankings offer some interesting twists. The United States rounds out the top three behind Germany and Singapore, but ranks first in domestic mining. The reason for this is not far-fetched due to the constant influx of miners into the United States following the mining crackdown in China. The migration has caused the United States to account for over 50% of the global Bitcoin mining hash rate.
The top ten are completed by Australia, Switzerland, Hong Kong, the Netherlands, France, Canada and Japan. Just like El Salvador, the city of Lugano officially accepts Bitcoin, Tether and Lugano’s own LVGA Points tokens as legal tender. This allowed Switzerland to take fifth place in the first quarter of 2022.
Additionally, due to excellent comprehensive crypto ranking criteria, including vast crypto trading volumes, the Netherlands, France, and Spain have grown significantly. They also rank highly for the number of blockchain startups in their economies, indicating a thriving blockchain-tech ecosystem. Finally, their progressively favorable regulations protect the interests of crypto users.
Following its tough stance on crypto and its outright ban on mining, it’s no surprise to see China come in last place. Additionally, the United Arab Emirates (UAE) made their official debut in the rankings by placing 26th. It is expected that the federation will soon compete for the top spot on the list once it develops a more transparent fiscal framework. However, it is making up for lost time with an ambitious plan to become a global crypto hotspot, by releasing clear guidelines for ICOs.
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