Key takeaways:
- Singapore is leading the world in the adoption of crypto, closely followed by Hong Kong and the United Arab Emirates.
- The researchers gathered data for 28 nations with investor migration schemes between July and August of 2024.
According to research, Singapore is leading the world in the adoption of crypto, closely followed by Hong Kong and the United Arab Emirates.
The investment migration consulting company Henley & Partners conducted research on the state of crypto adoption in several nations and published the Henley Crypto Adoption Index 2024.
Based on public acceptance, infrastructure, innovation and technology, the regulatory environment, economic considerations, and tax friendliness, the researchers rated different jurisdictions.
The researchers gathered data for 28 nations with investor migration schemes between July and August of 2024. According to the findings, Singapore led the world in crypto adoption, with Hong Kong and the United Arab Emirates (UAE) following closely behind.
With a score of 45.7 out of 60, Singapore ranked highest among the reviewed countries. According to research, the nation leads the world in the use of crypto thanks to its business, financial, and regulatory environments.
According to the experts, Singapore “fosters crypto adoption” as a result of its extensive rules, substantial investment, and banking system. Among these is the Payment Services Act of the nation, which governs services supplied by companies that offer digital payment tokens.
To explore the advantages of tokenization, the Monetary Authority of Singapore (MAS) oversaw sandbox initiatives like Project Orchid and Project Guardian. Due to the sandboxes, DBS Bank in Singapore used government grants and treasury tokens enabled by blockchain technology.
Singapore was ranked first, with Hong Kong, China’s unique administrative region (SAR), coming in second with an index score of 42.1. The area received very high marks for both its tax-friendliness and economic aspects. The study claims that “through significant public interest,” the area has fostered an environment that supports the emergence of crypto.
Furthermore, the region’s sophisticated digital infrastructure and high corporate acceptance in the tech and finance industries facilitate easier crypto use and investment by locals.
Similar to Singapore, the Monetary Authority of Hong Kong (HKMA) also maintains regulatory sandboxes for testing the advantages of tokenization. In order to investigate interbank settlement utilizing a central bank digital currency (CBDC) and real-world asset (RWA) tokenization, the HKMA established Project Ensemble on August 28.
The UAE nearly tied Hong Kong with an index score of 41.8. The nation outperformed Hong Kong and Singapore in terms of tax friendliness. The nation also received very high marks for innovation, technology, and economic issues.
According to the report, a sizeable section of the populace possesses crypto, and the enthusiasm of the public for the technology is matched by a robust startup ecosystem and robust government backing.