According to research from Recap, a cryptocurrency tax software company, London has become the world’s leading hub for cryptocurrencies. The researchers analyzed eight indicators, including the number of cryptocurrency businesses and the quantity of cryptocurrency ATMs in each country.
Key Findings of Recap’s Study on Global Cryptocurrency Hubs
Crypto tax firm Recap released a research report on Jan. 25, 2023, highlighting the top global cryptocurrency hubs, with London named the “most crypto-ready city.” Recap used criteria from eight elements, including the number of cryptocurrency businesses and employees, research and development spending compared to each city’s GDP, the number of cryptocurrency ATMs, cryptocurrency ownership, and capital gains tax rates.
Recap’s report details that London has the most people employed in the cryptocurrency industry compared to other global regions. The city is home to over 800 cryptocurrency-based companies and hosted the second-highest number of cryptocurrency-related events and conferences in 2022. The report states that London’s lead aligns with U.K. prime minister Rishi Sunak‘s goal to establish the United Kingdom as the world’s hub for cryptocurrency technology and investment.
London is followed by Dubai, the most populous city in the United Arab Emirates, as the second largest cryptocurrency hub. According to Recap’s study, Dubai’s appeal as a residence for cryptocurrency investors is due to its 0% tax rate. The study notes that Dubai has 772 cryptocurrency-based companies. New York is the third largest hub, with 843 firms specializing in cryptocurrency and blockchain technology. The American city is also home to the largest investment in cryptocurrency research and development.
“Crypto assets have grown massively over the past few years, and are becoming increasingly interlinked with the regulated financial markets, and the fact that so many cities are embracing it is a positive sign,” said Daniel Howitt, co-founder and CEO of Recap, commenting on the latest study. “London being the world’s leading crypto hub is good news for the government’s plans to make the U.K. a ‘global hub for crypto-asset technology and investment.’”
London, Dubai, and New York are followed, in order, by Singapore, Los Angeles, Zug, Hong Kong, Paris, Vancouver, and Bangkok. “Hong Kong, Paris, Vancouver, and Bangkok complete the top ten due to low capital gains tax, high volume of crypto ATMs, and the number of people in the crypto field,” Recap’s researchers note. “Interestingly, San Salvador in El Salvador, came 41st in the table with only ten people working in crypto-based jobs – but is the only place where bitcoin is considered a legal tender. Residents are able to spend it like currency as shop prices are also quoted in bitcoin (BTC),” the study’s researchers add.
You can check out Recap’s research report in its entirety here.
What do you think sets London apart as the world’s leading cryptocurrency hub, and do you believe this trend will continue in the future? Let us know your thoughts about this subject in the comments section below.