Dubai, Switzerland, and South Korea have been identified as the top global hubs for cryptocurrency businesses in 2024, according to a recent report by Social Capital Markets(SCM).
SCM stated that it judged the countries based on five key parameters: clarity of laws, capital gains tax rate, corporate income tax rate, the number of registered crypto companies, and the prevalence of businesses accepting crypto as payment. Other jurisdictions on the list include Singapore, Brazil, the USA, Germany, Portugal, and Malta.
Dubai ranked first with a score of 79 out of 100, thanks to its clear legal framework, zero capital gains tax, and a competitive 9% corporate tax rate. According to the report, the city has become a magnet for cryptocurrency and blockchain companies, largely due to the regulatory support of its Virtual Asset Regulatory Authority (VARA).
VARA’s guidelines reportedly ensure transparency and force crypto companies to operate responsibly, promoting trust and transparency in the market. For instance, the regulator recently introduced new rules that require virtual asset service providers (VASPs) to include disclaimers about the volatility of digital assets in promotional materials.
Also, per the report, Dubai’s lack of capital gains tax on crypto transactions and its business-friendly licensing fees make it an attractive location for blockchain startups and established firms alike.
Switzerland was ranked second place with a score of 74.5. The country is home to over 900 registered crypto companies, and over 400 companies accept cryptocurrency as a form of payment. The report attributed this to a regulatory framework that provides legal certainty for crypto businesses. It also points to the country’s tax structure—capital gains tax of 7.8% for long-term investors and corporate tax rates ranging from 12% to 21%—as another factor that further enhances its appeal.
South Korea ranked third with a score of 73.5. The country is home to over 376 active crypto firms, making it a key player in the global crypto industry. According to the report, the nation’s newly implemented comprehensive regulatory framework for cryptocurrency businesses and continued support for blockchain innovation further cement its role as a leading hub.
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