As a seasoned researcher with a knack for uncovering trends in the rapidly evolving world of cryptocurrencies and blockchain technology, I find myself increasingly intrigued by the dynamic landscape that is emerging globally. The recent study published by Social Capital Markets has shed some fascinating light on the most hospitable regions for crypto businesses in 2024, with Dubai, Switzerland, and South Korea leading the pack.
In 2024, it’s expected that cryptocurrency will become more widely accepted. A recent study by Social Capital Markets, published on Wednesday, has identified Dubai, Switzerland, and South Korea as the top three global locations for crypto businesses this year because they are actively supporting the expansion of blockchain companies.
The analysis assessed multiple aspects to determine the positioning of different nations, taking into account their legal structures, tax systems, and general business climate. This resulted in an all-encompassing perspective on which areas offer the best conditions for the expansion of the cryptocurrency sector.
Dubai Becomes a Top Crypto Hub for Businesses
Based on the assessments using the mentioned criteria, Dubai stood out as the prime business location, boasting an overall score of 79. The report indicates that Dubai led the pack with exceptional ratings in regulatory transparency, zero capital gain tax, and a competitive corporate tax rate of 9% for income exceeding AED 375,000.
Furthermore, the affordable licensing costs in Dubai have turned it into a captivating destination for cryptocurrency companies aiming to grow without incurring high expenses related to registrations and legal commitments when setting up operations in the area.
Over 550 cryptocurrency businesses have been officially authorized to conduct operations within the city, with prominent platforms such as Binance and Bybit receiving regulatory permissions to run their exchange services here this very year.
In May, Chainalysis, a firm specializing in blockchain analysis, disclosed its intention to establish a local branch in Dubai. The company stated that it had spent three years collaborating with both public and private entities in the region before finally managing to set up a physical location to better cater to their customers in this area.
A Tax Haven for Crypto Companies
In 2024, Switzerland takes the second spot as the most appealing nation for cryptocurrency ventures, scoring almost 75 points in total. Notably, Zug, one of its cities, has gained recognition as a worldwide center for cryptocurrencies.
At present, there are approximately 900 registered cryptocurrency businesses in the area, making Switzerland a significant player in this sector. Its appealing 7.8% capital gains tax for long-term investors adds to its allure as a destination for crypto innovators. The Swiss Financial Market Supervisory Authority (FINMA) plays a crucial role in establishing clear and efficient regulatory standards.
3rd on the list is South Korea, a country that’s established clear regulations. When it comes to taxes, this Asian nation currently doesn’t impose capital gains taxes, and they’ve delayed corporate tax until 2025. This tax structure positions South Korea as an appealing destination for crypto businesses and investors, who view it as a tax haven in the crypto space.
In spite of some uncertainty regarding regulations, South Korea achieved a score of 73.5, as over 376 businesses expressed interest in entering the market.
US Leads in Countries Accepting Crypto Payments
In addition to Dubai, Switzerland, and South Korea, these three countries stood out as the leading destinations for cryptocurrency businesses in 2024. Other nations such as the United States, Singapore, Brazil, Germany, Portugal, and Malta also found a place on this list.
Based on data from Social Capital Markets, it’s reported that Singapore ranked fourth among nations, earning a score of 72. Furthermore, the nation boosted its crypto sector by setting aside $8.9 million in blockchain grants to help local cryptocurrency businesses grow and expand their operations regionally while adhering to local regulatory standards.
Both the United States and Portugal have found themselves on a notable list, recognized for their significant roles in the acceptance of cryptocurrencies. In the U.S., approximately 5,968 businesses are currently open to digital assets such as Bitcoin and Ethereum for transactions, while Portugal boasts around 108 companies that accept crypto payments.
Portugal offers attractive tax situations for long-term investors, but it applies a 28% tax on short-term capital gains targeted towards individual traders seeking immediate returns.
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2024-10-09 12:18