According to Coincub's research, the world's most crypto-friendly countries have been identified—with Germany and the US tied for first place, though for distinctly different reasons.
Germany: Progressive Crypto Legislation Ranked #1
The study highlights Germany’s "progressive" crypto laws, high investor participation, and dense network of Bitcoin nodes.
Key Advantages:
- Tax Benefits: Holding Bitcoin or Ethereum for over a year incurs zero capital gains tax—a significant incentive compared to Germany’s 10-year requirement for tax-free real estate investments.
- Regulatory Clarity: Germany’s comprehensive rules address blockchain rewards and airdrops, setting a benchmark for legal frameworks.
- Institutional Adoption: Traditional savings banks (Sparkasse) now offer crypto trading and custody services to 50 million customers.
Strategic Moves:
Since 2019, Germany’s National Blockchain Strategy has driven digital transformation through 44 action items across five domains, including:
👉 Securitized tokenization and regulated ICOs
👉 Licensed crypto-fiat exchanges
The US: Major Developments Share the Top Spot
Milestones:
- Retirement Funds: Fidelity allows 401(k) plans to allocate up to 20% in Bitcoin (employer-dependent).
- Infrastructure: Leads globally in crypto ATMs (633 installed in July 2022 alone) and BTC nodes.
- Legislation: Bipartisan efforts (e.g., Lummis-Gillibrand bill) and Biden’s executive order for a federal digital asset strategy.
Retail Adoption:
- 85% of US retailers prioritize crypto payments (Deloitte survey).
- 93% of early adopters report positive outcomes.
Global Rankings: Shifts Driven by Policy Changes
Top 10:
- Germany & US
- Singapore (dropped after banning Bitcoin ATMs)
- Australia
- Switzerland
Notable Declines:
- UK (#12): Political turmoil stalled crypto hub plans.
- Pakistan, China: Strict crackdowns led to steep drops.
Methodology:
Coincub evaluated government policies, taxes, startup activity, and CBDC progress.
FAQ
Q1: Why is Germany’s tax policy favorable for crypto?
A1: Holding BTC/ETH over 1 year exempts gains—vs. 10 years for real estate.
Q2: How does US infrastructure support crypto growth?
A2: Leading in ATMs and nodes post-China’s mining ban.
Q3: What stalled the UK’s crypto hub ambitions?
A3: Political instability under Prime Minister Johnson’s resignation.