Germany has become the most favorable crypto economy in the world in the third quarter of 2022, according to a new study. The United States, which was in first place until last quarter, has dropped six places and is now in seventh place among the main digital economies.
Coincub’s ranking of crypto economies took into account various factors, such as pro-cryptocurrency outlook, clear tax rules, more transparent regulatory communications, etc., to rank countries.
Germany, although not a tax haven, is considered one of the strongest cryptocurrency economies in terms of “traditional taxes” that rewards long-term cryptocurrency holders. German law does not tax cryptocurrency holdings for more than a year.
Swiss ranked second place for its positive stance on crypto regulation and is home to some of the world’s leading crypto organizations. The next three spots on the list were held by Australia, the United Arab Emirates and Singapore, respectively.
Australia has shown a huge appetite for crypto assets and the government has been equally supportive in the past year, pushing positive pro-digital asset legislation alongside sensible tax policy. The United Arab Emirates has invested heavily in Web 3.0 and has a very attractive policy of zero tax on cryptocurrency earnings. Singapore, meanwhile, has established itself as a crypto powerhouse in Asia, with a significant portion of the population involved in trading and investing.
The United States fell to seventh place due to its unfavorable tax policy on cryptocurrencies and lack of clarity in the regulatory field. However, the report highlights that the United States is the only country that allows investment in cryptocurrencies to be part of strategic pensions in the workplace. With some key regulations in place, the US could see a significant improvement in its ranking for the coming quarter.
Among the nations most curious about cryptocurrencies, determined by the number of searches related to “Bitcoins”, El Salvador again topped the list, followed by Nigeria and the Central African Republic.
The population of Vietnam was found to be the largest crypto hoarder, with over 20 million or nearly 20% of the population investing in digital currencies. In the United States there are more than 46 million cryptocurrency holders, that is, almost 13% of the population has invested in crypto assets.
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