Recap, a crypto tax software program company, recently conducted a study which revealed that London has become the biggest cryptocurrency hub in the world. The analysis was based on eight indicators, including the number of crypto companies and ATMs in each country.
Key Findings of Recap’s Global Cryptocurrency Hubs Study
Recap released their report on January 25, 2023, which highlighted the top cryptocurrency hot spots in the world, with London named the “most crypto-ready city”. The eight criteria used by the Recap researchers included the amount of cryptocurrency companies and employees, which was measured against each city’s GDP, the number of cryptocurrency ATMs, cryptocurrency ownership, and capital gains tax costs.
The Recap study revealed that London has the highest number of people working in crypto trading than any other city. The capital is home to more than 800 cryptocurrency-based businesses and hosted the second largest number of crypto-related events and conferences in 2022. The report concludes that London’s position aligns with the UK Prime Minister Rishi Sunak’s goal of making the country a “global hub for crypto asset technology and investment.”
Dubai, the most populous city in the United Arab Emirates, is second, largely thanks to its 0% tax rate which makes it attractive for crypto traders. According to the Recap research, Dubai has 772 crypto-based businesses. New York is the third-largest hub, with 843 companies specializing in blockchain and cryptocurrency expertise. The city has seen the most significant investment in cryptocurrency research, development, and progress.
“Crypto assets have grown tremendously in recent years and are becoming increasingly intertwined with regulated financial markets, and the fact that so many cities are embracing it is a positive sign,” commented Daniel Howitt, Co-founder and CEO of Recap. “The fact that London is 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.’”
London, Dubai and New York are followed by Singapore, Los Angeles, Zug, Hong Kong, Paris, Vancouver and Bangkok. “Hong Kong, Paris, Vancouver, and Bangkok round out the top ten due to low capital gains tax, high volume of crypto ATMs, and the number of people in the crypto field,” the Recap researchers observe. “Interestingly, San Salvador in El Salvador was ranked 41st in the table with only ten people working in cryptocurrency-based jobs, but it is the only place where Bitcoin is considered legal tender. Residents can spend it as currency, since store prices are also quoted in bitcoin (BTC),” the researchers also add.
You can view the full Recap study report here.
What do you think sets London apart from being the biggest cryptocurrency hub in the world? Do you think this trend will continue in the future? We would love to hear your thoughts on the matter in the comments section.
