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Why is Hong Kong ready for widespread crypto adoption?

Hong Kong
TL;DR Breakdown
  • Hong Kong takes the lead in crypto-preparedness among big economies.
  • The US and Switzerland follow suit as the second and third prepared nations.
  • The number of internet searches on cryptocurrency also rose to indicate an increase in interest.

According to Forex’s research, Hong Kong is best equipped for widespread crypto adoption. The study indicated that Hong Kong had a crypto-readiness score of 8.6.

Public acceptance of cryptocurrencies is still essential to their continued existence. Governments will need to establish support systems for the mainstream adoption of cryptos. These systems should complement the requirements of both the people and the technology.

A country prepared to embrace crypto exhibits specific indicators. Such indicators include the following. One proliferation of cryptocurrency-accepting automated teller machine (ATM) locations. Besides, it must have a favorable regulatory environment. Thriving startup cultures and fair taxation policies are all essential.

US and Switzerland trail Hong Kong

The US and Switzerland both made it into the top three despite having scores of 7.7 and 7.5, respectively, for their level of crypto-readiness. The United States has a significantly larger cryptographic infrastructure than the island nation. Yet, it still trails it.

The research considered specific pointers to find out the preparedness level. For instance, the number of crypto ATM installations is proportional to the population and geographical size of the area. Also, the number of blockchain startup companies for every 100,000 people was significant.

As a direct consequence of this, Hong Kong’s relatively tiny land area contributed to the country’s position at the top of the list.

According to the data provided by CoinATMRadar, the US accounts for 88% of the global total of crypto ATM installations. On the other hand, Hong Kong has established a network of 146 cryptocurrency ATMs only. This only accounts for 0.4 percent of all cryptocurrency ATMs worldwide. A cryptocurrency automated teller machine is never more than 4.3 miles (7 kilometers) away from a resident of Hong Kong due to the city’s compact size.

Switzerland, on its part, has a cryptocurrency ATM approximately every 161.5 miles (260 km). The United States of America has crypto ATMs around 168.3 miles (271 km).

The imposition of crypto-specific taxes is one of the most significant obstacles to widespread crypto use. Hong Kong, Panama, Switzerland, Portugal, Malaysia, Germany, and Turkey all tie for first place regarding taxation. These countries have the lowest taxes on capital gains for cryptos.

More people are showing interest in crypto

Investor attitude is critical in determining if a nation will be prosperous in its efforts to put in a robust crypto infrastructure. Investors from big economies, including Australia, Ireland, and the United Kingdom, have shown the most vital interest in cryptos. The findings indicate that there is healthy pro-crypto competition around the globe.

The study also looked at the number of internet searches for cryptocurrencies compared to the data from the year. The detail was vital to determine whether there was an increase in interest among the populations of each country.

Cyprus came first with approximately 34,000 crypto searches for every 100,000 persons. Thus, representing a growth of almost 137 percent from the previous year. The amount of people interested in cryptocurrency is skyrocketing across many different nations. There was a year-over-year growth in crypto searches of 331 percent in Romania, which was the highest among all nations. Countries like Greece, the United Kingdom, Canada, and Saudi Arabia were not far behind.

Singapore has taken a stand that incorporates innovation and regulation toward virtual currencies. The state is keen to conduct total surveillance of the crypto ecosystem. The surveillance aims to detect and stop illicit or fraudulent actions that do not impede development.

The Payment Services Act of 2019 governs using cryptos in Singapore’s financial system. The law balances the expansion of cryptocurrency and the suppression of unlawful activity. As a result, it gives the perfectly legal and legislative environment for progressive and sustainable growth.

Individual investors and corporations that hold cryptos are exempt from paying any form of capital gains tax. Despite this, a business that buys, sells, or accepts cryptocurrency payments is subject to income taxation.

Nellius Irene

Nellius Irene

Nellius Irene is a cryptocurrency investor and journalist who has been in the nascent space since 2018. She has researched and written on several crypto-related topics including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

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