Dubai, Switzerland, and South Korea Ranked as the Best Cryptocurrency Locations for 2024
Date: 2024-10-09 Author: Gabriel Deangelo Categories: IN WORLD
Each factor was scored on a scale of 0 to 20, resulting in a ranking of the top ten crypto-friendly countries.
Dubai: Cutting-edge crypto strategies secure top spot in global ranking
Dubai took the top spot with a score of 79, thanks to regulatory clarity, no capital gains tax, a favorable corporate tax rate of 9%, and affordable licensing fees. Dubai has established itself as a leading hub for cryptocurrency and blockchain projects by adopting a thoughtful regulatory regime and favorable tax conditions. The establishment of the Virtual Assets Regulatory Authority (VARA) and the Dubai Financial Services Authority (DFSA) has provided a clear legal environment that is conducive to innovation in the crypto space.
In addition, the DMCC Cryptocurrency Centre plays a key role in supporting the growth of crypto and blockchain firms by providing specialized infrastructure for them. Dubai does not impose capital gains tax on crypto transactions. The corporate tax threshold is set at AED 375,000. This tax strategy enhances Dubai’s global appeal for crypto businesses.
Switzerland: ‘Crypto Valley’ with 900 companies and an investor-friendly tax system
Switzerland ranks second with a score of 74.5, with 900 registered crypto companies and a capital gains tax of 7.8% for long-term investors. FINMA, Switzerland’s financial regulator, has created a clear and accommodating regulatory framework for crypto businesses. This framework is particularly strong in regions such as Zug, known as “Crypto Valley.” Mandatory registration with FINMA provides legal certainty, which has contributed to the successful development of over 900 crypto companies in Switzerland.
Switzerland’s tax system also enhances its attractiveness to cryptocurrencies, with a capital gains tax of 7% and corporate taxes ranging from 12% to 21%, creating a more favorable tax climate compared to the global average. More than 400 companies accepting crypto for payments highlight the deep integration of cryptocurrencies into the country’s economy.
South Korea: Evolving Crypto Framework and Tax Incentives Take It to 3rd Place
South Korea ranks third with a score of 73.5 and is actively involved in shaping the global crypto landscape. The Korea Financial Intelligence Unit (KFIU), under the supervision of the Financial Services Commission (FSC), has established an evolving regulatory framework aimed at integrating cryptocurrencies into the financial system. By requiring crypto companies to register with the FSC, the country ensures oversight and legitimacy of their operations.
South Korea’s tax policy is also improving its attractiveness to crypto initiatives. A deferral of capital gains tax on cryptocurrencies, along with plans to introduce a corporate tax in 2025, provides temporary tax breaks, potentially attracting more businesses. With over 376 active crypto companies, South Korea is expanding its market and setting a regional example. Supported by government initiatives such as the central bank digital currency (CBDC) study, the country combines regulatory clarity, business potential, and technological growth to solidify its influence in the global crypto scene.
