Study shows Hong Kong is most crypto-ready country

26 Jul 2022

Hong Kong looks set to be the most cryptocurrency-ready country this year according to findings from a Forex Suggest study.

The number of crypto ATMs, crypto regulations, a fair tax regime and start-up culture are all factors considered when indicating a country’s readiness to adopt digital currencies.

Although public acceptance is still essential to the existence of crypto, the path to mainstream adoption needs governments to establish an infrastructure to complement the tech’s requirements, Cointelegraph reports.

Taking into account these factors, the Forex Suggest findings show Hong Kong to be the most prepared for broad crypto adoption in 2022, with a crypto-readiness score of 8.6. In second place is the United States with a score of 7.7, followed by Switzerland with 7.5.

The principal factors taken into account to determine a country’s crypto-readiness were the number of crypto ATMs in proportion to the population and size of the jurisdiction, as well as the amount of blockchain start-ups per 100,000 people. 

According to CoinATMRadar data, the U.S. has 88% of global crypto ATM installations, whereas Hong Kong has just 0.4%. Yet due to the smaller area, residents of Hong Kong are never over 4.3 miles from a crypto ATM.

Furthermore, crypto taxes act as the main deterrents to crypto adoption. Tied at the top in regard to the lowest taxes on capital gains are Hong Kong, Switzerland, Panama, Portugal, Germany, Malaysia and Turkey.

Although efforts to develop a burgeoning crypto infrastructure rely a great deal on investor sentiment, investors from countries such as the UK, Ireland and Australia have shown the highest interest in crypto, indicating a strong degree of pro-crypto competition worldwide.