Dubai, Switzerland, and South Korea have been selected as the top cryptocurrency business regions for 2024

by cryptheory

October 10, 2024

Reading Time: 2 mins read

Dubai, Switzerland, and South Korea have been selected as major cryptocurrency business regions for 2024.

According to the Social Capital Market report, these countries ranked high in providing legal clarity. They also benefit from favorable capital gains and corporate tax rates. Additionally, the report highlights that these countries are home to a significant number of registered cryptocurrency companies, which contributed to their selection as key regions. Social Capital Market also noted that these nations have widely embraced cryptocurrency payments and have formed active communities around the industry.

Scores were assigned based on five categories, each worth up to 20 points, resulting in a total score of 100 to determine the top 10 cryptocurrency-friendly countries.

Dubai’s forward-thinking cryptocurrency policies earn it the global top spot

Dubai ranked first with a score of 79 points, receiving high marks for regulatory clarity, the absence of 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 ventures through its forward-thinking regulatory framework and favorable tax policies. The creation of the Virtual Assets Regulatory Authority (VARA) and the Dubai Financial Services Authority (DFSA) ensures a clear legal environment that fosters innovation in the cryptocurrency space.

The DMCC Crypto Centre also plays a key role in supporting the growth of cryptocurrency and blockchain companies, providing specialized infrastructure for these businesses. Additionally, Dubai does not impose capital gains tax on cryptocurrency transactions, and corporate taxes are capped at AED 375,000, making its tax strategy highly attractive to global cryptocurrency businesses.

Switzerland’s crypto valley thrives with 900 companies and investor-friendly tax system

Switzerland secured second place with a score of 74.5, boasting over 900 registered cryptocurrency companies and a capital gains tax of 7.8% for long-term investors.

The Swiss Financial Market Supervisory Authority (FINMA) has created a clear and accommodating regulatory framework for cryptocurrency businesses, particularly strong in regions like Zug, known as Crypto Valley. By mandating registration with FINMA, companies can achieve legal certainty, allowing more than 900 crypto businesses to thrive in Switzerland.

Switzerland’s tax regime, offering a 7% capital gains tax and corporate taxes ranging between 12% and 21%, provides a favorable tax environment, enhancing the country’s appeal for cryptocurrency ventures. Furthermore, over 400 companies in Switzerland accept cryptocurrency as a means of payment, showcasing the deep integration of crypto into the Swiss economy.

South Korea Rises to 3rd Place with Evolving Crypto Framework and Tax Incentives

South Korea ranked third with a score of 73.5, playing an active role in shaping the global cryptocurrency landscape.

The Korea Financial Intelligence Unit (KFIU), under the Financial Services Commission, has established a regulatory framework to integrate cryptocurrency into the financial system. The requirement for cryptocurrency businesses to register with the Financial Services Commission ensures regulatory oversight and operational legitimacy.

South Korea’s tax policies add to its attractiveness for cryptocurrency ventures. Plans to introduce corporate tax in 2025, along with a temporary suspension of capital gains tax on cryptocurrency, provide tax relief and are expected to attract more companies.

With over 376 active cryptocurrency businesses and support from national initiatives like the exploration of CBDCs (Central Bank Digital Currencies), South Korea is expanding its market and solidifying its influence in the global cryptocurrency ecosystem through regulatory clarity, business potential, and technological growth.