Q4 2021 Global Crypto Ranking: See where your country is at the end of 2021

The Coincub Global Crypto Ranking

2021 has been another compelling year for crypto trading and blockchain innovations worldwide. To cap it off, we’re revealing our definitive end-of-year country ranking. Which country is the most crypto-ready? Singapore takes the top spot, and Australia has moved rapidly up the ranks, beating out Canada, Japan, and the US to hit 2nd place. Germany has held onto 4th place while El Salvador is up to 9th place. China (formerly the world leader in crypto mining) plunged to the bottom following its ban on trading and mining bitcoin. Japan is up to number 10, but Russia has dropped down to 42nd place after banning the use of bitcoin to buy goods and services.

The future is happening in Singapore

As 2021 comes to a close, Singapore is the most promising location for crypto investors to live and work. The city-state’s robust economy, positive legislative environment, and high rate of cryptocurrency adoption are key factors that have contributed to its rise to #1. Singapore has leapfrogged the United States this year thanks to the latter’s uncertain regulatory environment and scaling back of initial coin offerings (ICOs).

Coincub’s top ten global crypto economies for 2021 Q4 – agree?

1. Singapore

Singapore has taken the top spot thanks to a booming crypto economy, positive legislation, and the world’s second highest percentage of crypto-owning population. That’s not to mention the clear government strategy and firm regulations that have been providing reassurance to crypto-shy investors.

2. Australia

New statistics suggest that Australia has a healthy lead over its closest competitors when it comes to DeFi and blockchain technologies. Australian banks are offering services like crypto purchasing to their clients, and the country has 500+ bitcoin nodes.

3. United States

8% of the world’s crypto owners live in the United States, a number topped only by Singapore and El Salvador. Add 26,000 bitcoin ATMs and the only crypto exchange listed on the stock market (Coinbase), and you’ve got a crypto-friendly country. The US is no longer #1 due to regulatory crackdowns, but it retains its place in the top 3.

4. Germany

Widespread institutional acceptance has landed Germany a spot in the top 5. German institutions were some of the first to offer custody for crypto assets. There are nearly 2,000 bitcoin nodes, and Berlin is a hotspot for crypto culture.

5. Canada

Canada has plenty of progressive advocates for blockchain technology. Their positive investment framework means that only 50% of crypto gains are subject to capital gains tax. A high percentage of crypto owners and ATMS nets Canada a spot in the top 5.

6. Sweden

Sweden scores high due to a positive government outlook, clear legislation, and a potential e-Krona. The Swedish Nasdaq also approved bitcoin-based Exchange Traded Note. The ranking is rounded out by a healthy number of crypto holders and bitcoin nodes.

7. Portugal

Portugal’s government encourages crypto trading. There is no direct tax for amateur crypto buyers and plenty of places to spend crypto. A hefty portion of the population owns crypto, and the banking community offers some crypto services.

8. Switzerland

Switzerland has wide institutional acceptance, as well as plenty of bitcoin nodes and ATMs. A leading bank is already licensed to offer crypto investment solutions and trading.

9. El Salvador

In September, El Salvador officially classed bitcoin as legal tender. No capital gains tax, a government approved wallet, and government sponsorship of the banking sector mean El Salvador is a crypto-friendly nation. Watch with interest.

10. Japan

Japan has strong governmental and institutional acceptance of crypto. Lower crypto taxes are prospected. Japan has 119 bitcoin nodes and all leading exchanges. Over 30 major companies and banks are trialing digital currency.

Notable changes since the previous ranking

• China drops to the bottom following a ban on all crypto dealing.
• Australia is up to second place thanks to a major bank offering crypto facilitation services.
• Russia drops to 42nd owing to a ban on buying goods and services with crypto
• El Salvador shoots up to 9th place with its unique decision to use bitcoin as legal tender
• Ireland marked down on rating due to overall lack of institutional drive and government strategy
• Portugal moved upwards. It’s open to expat investors and overall a great country to take up residency. The overall score is higher due to low tax rates.

Country Score Q4 2021

Country score, ranking, changes since Q3 2021 and data drill down

Methodology

There’s plenty of raw data around crypto to be found, from the number of online crypto searches to the numbers of people holding bitcoin, or the volumes of trading – and many rankings are based on these individual data streams. At Coincub we compile our quarterly rankings using multi-data streams and also qualitative information such as government outlook, strategy, and legislation. We also factor in the prevailing stance of banks, financial institutions and central banks regarding the crypto space in their countries (often not as aligned as you might think). Using this approach – on a country-by-country basis – we believe offers a truer view of the crypto-economy in a chosen country and validates its position on the Coincub global quarterly ranking.

• Coincub’s comprehensive ranking guide assimilates both quantitative and qualitative information from most active countries worldwide
• The ranking accounted for key criteria, including trading volumes, legislation, security, taxation, exchange access, institutional acceptance and more
• The number of bitcoin nodes, ATMs, and exchanges based in a country are key quantitative indicators
• Rankings are constantly changing, especially where new legislation is introduced

Definition

Institutional acceptance

What establishments support crypto? Are major institutions investing in crypto? Drawbacks: it can be difficult to predict what certain pieces of legislation can mean for crypto; institutions such as banks can be secretive about intent, and the most accurate information may not be available. Also, there is often a difference between what governments, central banks, and what mainstream institutions are willing to risk.

Exchanges and wallets availability

Are there any exchanges located in the country? Are there economic or policy reasons that prevent exchanges from operating? The presence of exchanges within a country – and the overall trading volume – is a good guide to any country’s crypto acceptance on a consumer level. We also take notice of any wallets or exchanges that aren’t allowed.

Government regulation

Is crypto legal? Who can you access it? How is it regulated? How closely do governments adhere to money laundering and anti-terrorist financing legislation? How much oversight does the government have over crypto? The drawbacks of this parameter are that it can be difficult to predict how regulations play out. In most countries, crypto legislation is evolving, effectively bringing it within the mainstream of taxable investment activity.

DeFi acceptance

Decentralized finance is a buzzy topic. Most of the debate on decentralized finance is led by opinion and speculation. DeFi acceptance on the one hand shows governments’ openness to looking at new financial concepts, but a lack of this does not inhibit crypto activity at present. DeFi is still seen as peripheral technology, but it is a strong indication of future developments.

Financial services

What kind of financial services can exchanges allow? Is crypto traded in financial markets? What about crypto derivatives? Can exchanges offer different kinds of trades (i.e. margin trading, derivatives, futures, etc.)? Increasingly, institutions around the world wish to harness the demand for crypto. Many of the more complex products are banned by governments, but financial sectors still offer advice, tax planning, and legitimate ways to make crypto part of investment and retirement planning.

Transparency

Transparency relates to the sophistication of regulatory compliance and licensing of crypto related services. Nearly all major exchanges require some form of ID in adherence to anti money laundering and Know Your Customer regulations.

Spending crypto

How easy is it to spend crypto? Are there retailers that sell gift cards? How many bitcoin ATMs operate? Are there outlets where customers can buy directly with crypto? Is there a crypto scene? Are there meetups? Are there crypto hubs? Drawbacks to this parameter are that not every locale accepting cryptocurrency is findable online, so we are liable to underreport the amount of activity.

Banks’ activity in crypto

Are banks investing in cryptocurrency? Are central and private banks issuing guidance to customers about crypto, and if so is it positive or negative? Investment banks are specialist banks that deal in wealth generation for the very rich and that is not our interest here. We concentrate upon the mainstream, consumer banks. These are the banks that, up until recently, viewed crypto as high risk and advised their customers accordingly. Having consumer banks able to provide custodial services is a big step forward for potential investors. This level of service is growing in many countries. It reflects highly on crypto-friendliness – and we rate it highly where it is happening.