The UAE is ranked fifth in the world as the crypto-ready country in the world in 2022. The top slot is occupied by Hong Kong and followed by the US, Switzerland and Georgia.
According to a report in CoinTelegraph, the factors considered to calculate a country’s readiness were the number of crypto ATMs proportional to the population and geographical size and the number of blockchain start-ups per 100,00 people.
While public acceptance remained key to the existence of crypto, the road to mainstream crypto adoption requires governments to set up a supporting infrastructure that complements the requirements of the technology and the people.
The other factors such as crypto ATM installations, pro-crypto regulations, start-up culture and a fair tax regime signal a country’s readiness to adopt cryptocurrencies. Considering these factors, a Forex Suggest study revealed Hong Kong as the best-prepared country for widespread cryptocurrency adoption, with a crypto-readiness score of 8.6.
Despite having a bigger crypto infrastructure than the island nation, the US and Switzerland made it to the top three with lower crypto-readiness scores of 7.7 and 7.5, respectively (see chart).
The biggest factors considered in the study to calculate a country’s readiness were the number of crypto ATM installations proportional to the population and geographical size of the jurisdiction and the number of blockchain start-ups per 100,00 people. As a result, Hong Kong’s smaller land mass helped the country top the list.
The report also said that CoinATMRadar data indicated that the US houses 88% of the global crypto ATM installations. On the contrary, Hong Kong installed a network of 146 crypto ATMs, representing just 0.4% of crypto ATMs worldwide. Owing to the smaller area, Hong Kong residents are never more than 7 km away from a crypto ATM.
On the other hand, Switzerland has a crypto ATM every 161.5 miles (260 km), while the U.S. has installed crypto ATMs every 168.3 miles (271 km).
Crypto taxes serve as the biggest deterrents to mainstream crypto adoption.
Hong Kong, Switzerland, Panama, Portugal, Germany, Malaysia and Turkey share the top spot for the lowest crypto taxes on capital gains.
A country’s efforts to nurture a growing crypto infrastructure depend heavily on investor sentiment. That being said, investors from major economies like Australia, Ireland and the United Kingdom have shown the highest interest in cryptocurrencies, signalling healthy pro-crypto competition around the globe, the report said.