Germany has become the most favorable crypto economy in the world in the third quarter of 2022, according to a new report. The United States, which held the top spot last quarter, has dropped six spots to rank seventh in the top cryptocurrencies ranking.
The cryptoeconomics ranking prepared by Coincub took into account various factors such as favorable prospects for cryptocurrencies, clear rules for taxing cryptocurrencies, and more transparent regulatory communication to rank countries.
Germany, while not a tax haven, is considered one of the strongest all-round “traditional tax” crypto economies that reward long-term cryptocurrency holders. German law requires zero tax on crypto assets for one year.
Switzerland came in second with a positive regulatory stance on cryptocurrencies and is home to some of the best crypto organizations in the world. The next three places on the list were taken by Australia, the United Arab Emirates and Singapore, respectively.
Australia has shown huge interest in cryptocurrencies and the government has been equally supportive in the last year, pushing for positive crypto legislation along with prudent tax policies. The UAE has invested heavily in Web3 and has a very attractive zero taxation policy on cryptocurrency winnings. Singapore, on the other hand, has established itself as a crypto powerhouse in Asia, with a significant portion of its population involved in cryptocurrencies and investing.
The US dropped to seventh place due to unfavorable crypto taxation policies and a lack of regulatory clarity. However, the report highlights that the US is the only country that allows cryptocurrencies to be included in strategic workplace pensions. With some key cryptocurrency legislators at work, the US could see a significant improvement in its rankings by the next quarter.
Related: Germany and the US share the top spot in global crypto rankings
Among the most cryptocurrency-inquiring countries, as identified by the number of Bitcoin-related searches, El Salvador again topped the list, followed by Nigeria and the Central African Republic.
We found that the Vietnamese are the largest crypto-hoarders, with over 20 million people, or nearly 20% of the population, investing in crypto. There are over 46 million cryptocurrency holders in the US, or almost 13% of the population, who invest in cryptocurrencies.