London has emerged as the world’s leading crypto-hub, new research has revealed.
England’s capital ranked highest in the world in the crypto-readiness index, devised by crypto tax software company Recap – closely followed by Dubai.
The index comprises eight criteria, including the number of crypto workers and companies, crypto meet-ups, quality of life score, and R&D spend as a percentage of GDP, in each city.
Along with having the highest number of people working in the crypto industry compared to anywhere else, London hosted the second highest number of crypto-related events and conferences throughout the year, and is home to over 800 crypto-based companies.
This is on track with plans made by Prime Minister Rishi Sunak, who set out in April 2022 to make the UK a ‘global hub for crypto-asset technology and investment’.
Dubai comes in second place as it pushes to become the leading centre for cryptocurrency and blockchain technology in the Middle East, following a year of multiple new laws for crypto exchanges to operate in the city.
Capital gains tax was also taken into consideration in the index – with Londoners paying up to 20%. Dubai currently has a rate of 0%, and may be the second choice for some UK residents. Holborn Assets revealed 200,000 Brits currently reside in the city – with 772 crypto-based companies to choose from when it comes to finding a career in the sector.
The top 10 crypto-hubs in the world:
- London, England
- Dubai, UAE
- New York, USA
- Singapore
- Los Angeles, USA
- Zug, Switzerland
- Hong Kong
- Paris, France
- Vancouver, Canada
- Bangkok, Thailand
Daniel Howitt, co-founder and CEO at Recap, commented on the research:
“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. London being the world’s leading crypto hub is good news for the government’s plans to make the UK a ‘global hub for crypto-asset technology and investment’.”
“At the same time, our research shows that the world’s least developed countries are significantly less prepared to become crypto-hubs. Lack of infrastructure, foreign investment, and skilled workforce in the area may explain why some are lagging behind. This could cause barriers to trade with more developed crypto-hubs in future – so it’s important they’re all given the opportunity to get up to speed.”
“While London excels in offering crypto events and jobs, as well as attracting crypto companies, the city falls behind when it comes to R&D spend and crypto ownership; we need to see more investment in these areas as a country in future, for London to continue to leading the race as a global crypto-hub.”
He added:
“Like many countries, the UK is forming new rules and regulations around crypto taxation. Whether this will help or hinder London’s place as a crypto-hub is something to look out for in the future.”
The full report can be found here: https://recap.io/blog/the-rise-of-crypto-hubs-which-cities-are-leading-the-way-in-cryptocurrency