Southeast Asia Leads Global Crypto Adoption

A study has found that Singapore has secured the leading position in global cryptocurrency adoption, with Hong Kong and the United Arab Emirates (UAE) closely following.

The Henley Crypto Adoption Index 2024, published by the investment migration consultancy Henley & Partners, examined the state of cryptocurrency adoption across various countries.

The researchers assessed different jurisdictions based on factors such as public adoption, infrastructure, innovation and technology, regulatory environment, economic conditions, and tax friendliness.

Between July and August 2024, data was gathered for 28 countries with investment migration programs.

The findings revealed that Singapore ranked first in crypto adoption, followed by Hong Kong and the UAE.

Singapore achieved a score of 45.7 out of 60 points, earning the top position among the countries analyzed.

The study attributes Singapore's global leadership in crypto adoption to its favorable business, financial, and regulatory environment.

The researchers noted that Singapore “fosters crypto adoption” due to its supportive banking system, substantial investment, and comprehensive regulations.

This includes the Payment Services Act, which governs services related to digital payment token providers.

The Monetary Authority of Singapore (MAS) has also spearheaded sandboxes such as Project Orchid and Project Guardian to explore the benefits of tokenization.

These initiatives led to the adoption of blockchain-powered treasury tokens and blockchain-based government grants by Singapore's DBS Bank.

Hong Kong, a special administrative region (SAR) of China, ranked second, scoring 42.1 in the index.

The region performed particularly well in economic factors and tax-friendliness.

According to the study, Hong Kong has nurtured an environment that encourages crypto growth “through significant public interest.”

Furthermore, the region's high level of business acceptance in the financial and tech sectors, along with its advanced digital infrastructure, facilitates the use and investment in cryptocurrencies.

Similar to Singapore, the Hong Kong Monetary Authority (HKMA) also conducts regulatory sandboxes to evaluate the benefits of tokenization.

On August 28, the HKMA launched Project Ensemble to explore interbank settlement using a central bank digital currency (CBDC) and real-world asset (RWA) tokenization.

The UAE scored 41.8 in the index, coming very close to Hong Kong.

The country outperformed both Singapore and Hong Kong in terms of tax-friendliness. It also received high marks for economic factors, innovation, and technology.

The study highlighted that a significant portion of the UAE's population owns cryptocurrencies, and the country's dynamic startup ecosystem and robust government support align with the public's enthusiasm for crypto.

Sources:

https://cointelegraph.com/news/singapore-hong-kong-uae-leads-global-crypto-adoption

https://www.henleyglobal.com/publications/henley-crypto-adoption-index/methodology