Crypto Hubs 2023: Did Dubai, Abu Dhabi, Hong Kong Make a Cut?
The crypto space is ever-evolving. Changes, updates, and upgrades take place on a daily basis, keeping investors and other people from the space on their feet. Tapping into the growing interest of the masses, several regions around the world have softened their stance with respect to this asset class. In effect, a bunch of them have managed to earn the ‘crypto hotspot’ or ‘crypto hub’ tag.
Crypto Hubs 2023
Considering various factors like regulations, adoption, ease of doing business, digital infrastructure, jobs, etc., CoinDesk recently identified a host of crypto hubs. While the list did contain several expected names like Dubai, Abu Dhabi, and Singapore, it also featured a few unconventional and off-beat names like Ljubljana, and Libson.
Zug
With no outright weakness per se, Switzerland’s Zug managed to clinch the top spot. According to the report, Zug scored the “highest overall” when it came to opportunity measures. This was mainly due to the “richness of its per-capita crypto-related companies and events.” Well, it is worth noting that Ethereum was essentially born in Zug, for Vitaik Buterin along with other coders worked from a small apartment.
With other top regulators around the world busy ‘enforcing’ measures intended to curtail the industry, Switzerland is presenting itself as a go-to alternative. The presence of local crypto banks like SEBA and Sygnum is the icing on the cake, for they assist crypto start-ups with coin storage, tax statements, deposit insurance, etc. This place is, however, expensive, and as a result, the developer community is not very fond of this region.
Also Read: Singapore: Crypto.com Secures ‘Major Payment Institution’ Licence
Singapore
Singapore stood second on the rankings list. Right from Ripple to Crypto.com, a host of prominent companies have been receiving licenses from the Monetary Authority to extend their services in Singapore. The “well-regulated, efficiently governed” region is what has been attracting firms to the nation.
Even though companies are still evaluating the region, it should be noted that distressed/collapsed companies like Vauld, Three Arrows Capital, and Terraform Labs were also based out of this region, tarnishing their reputation. However, Singapore has the highest rating in the world for digital infrastructure. Parallelly, it occupies one of the top positions in the World Bank’s Ease of Doing Business Index, making it quite a competitive hub.
Also Read: Ripple Receives ‘Approval’ In Singapore For Major Payment Institution License
London
Owing to the “healthy grassroots crypto adoption rate,” London emerged at number 3. Well, the said region harbors the world’s oldest stock and foreign exchanges and is already a finance hub. According to James Butterfill, Head of Strategy at CoinShares, “there are around 363,000 individuals that work in the financial sector”. This number easily dwarfs any other city in Europe like Paris or Frankfurt.
In the midst of the digital revolution, the region has now been able to entice firms like A16z to set up their crypto shop. Alongside, it’s interesting to note that around 10% of the adult population has already bought crypto assets in the past.
Now, it is known that Prime Minister Rishi Sunak intends to make the U.K. a crypto hub. However, the time window to do so is gradually receding, for elections are due next year. Thus, the viability of this ranking will soon be put to the test.
Seoul, Dubai, Abu Dhabi, Wyoming, Silicon Valley, Austin, Berlin, Los Angeles, New York City, Ljubljana, and Libson were the other regions that made a cut to the top 15.
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