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Dubai, Switzerland, and South Korea have taken the lead in shaping the future of the cryptocurrency industry, offering businesses a thriving environment backed by favorable regulations, tax policies, and a robust market infrastructure.
Key Notes
More than 550 crypto firms, including Binance and Bybit, have made Dubai their home, drawn by favorable licensing fees, zero capital gains tax, and a competitive corporate tax rate.Apart from the top three, countries like the US, Singapore, and Portugal are making significant strides in crypto adoption, with a growing number of businesses accepting digital payments. .With the cryptocurrency industry headed to mainstream adoption in 2024, a new study published by Social Capital Markets on Wednesday has named Dubai, Switzerland, and South Korea the top three global destinations for crypto businesses this year due to their proactive stance in promoting the growth of blockchain enterprises.
The report evaluated various factors to rank these countries, including their regulatory frameworks, tax policies, and overall business environment, providing a comprehensive look at which regions are most favorable for the growth of the crypto industry.
Dubai Becomes a Top Crypto Hub for Businesses
Following the evaluations using the metrics above, Dubai emerged as the leading destination for businesses, with an overall score of 79. According to the report, the city topped the chart with impressive scores in regulatory clarity, no capital gain tax, and a favorable corporate tax of 9% for income above AED 375,000.
Additionally, Dubai’s cheap licensing fee has made the city an attractive hub for crypto businesses looking to expand without spending much on registrations and other legal obligations before establishing their brand in the region.
The study showed that more than 550 crypto companies are registered to operate in the city. This year alone, crypto exchanges like Binance and Bybit received regulatory licenses to operate in the region.
In May, blockchain analytics company Chainalysis announced that it plans to open a regional office in Dubai. The company said it took three years of working with the region’s public and private sectors to finally secure a physical office to continue serving customers in the area.
A Tax Haven for Crypto Companies
Following Dubai on the list is Switzerland, ranked as the second most attractive country for crypto businesses in 2024, with a total score of nearly 75. The country’s city of Zug is recognized as a global crypto hub.
Switzerland currently boasts 900 registered crypto companies in the region. Its favorable 7.8% capital gains tax for long-term investors makes it an attractive hub for crypto entrepreneurs. The country’s Financial Market Supervisory Authority (FINMA) is responsible for providing clear and effective regulatory benchmarks.
Third on the list is South Korea, which has developed regulatory clarity. In terms of taxes, the Asian country has zero capital gain taxes and has postponed its corporate tax until 2025, making the nation a tax haven for crypto companies and investors.
Despite a lack of regulatory clarity, South Korea registered a score of 73.5, with more than 376 companies exploring the market.
US Leads in Countries Accepting Crypto Payments
Apart from Dubai, Switzerland, and South Korea, which emerged as the top three most friendly nations for crypto businesses in 2024, other countries like the United States, Singapore, Brazil, Germany, Portugal, and Malta made it to the list.
According to Social Capital Markets, Singapore emerged as the fourth nation, scoring 72. In addition to its regulatory standards, the country established an $8.9 million blockchain grant to support crypto businesses in scaling their operations in the region in compliance with local regulations.
The United States and Portugal made the list due to their contributions to crypto adoption. In the US, 5,968 businesses currently accept digital assets like Bitcoin and Ethereum for payments, and the same goes for Portugal, where around 108 companies accept crypto.
Portugal has favorable tax conditions for long-term investors, although the country imposed a 28% short-term capital gains tax on retail traders looking for quick profits.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
