Germany is the most crypto-friendly country for Q1,2022, according to a study conducted by Coincub. It is a digital asset exchange aggregator. Singapore, the former leader is now in second place, with the United States in third.
Coincub, a crypto exchange aggregator, recently announced its most current Global Crypto Ranking. In this article, you will discover how Germany is leading this rank.
Germany, The World’s First Country in Crypto Adoption
According to the research, Germany has surpassed Singapore as the world’s most crypto-friendly country.
Also, the study states: “Before the results of this study, Germany was already considered one of the most crypto-friendly countries in the world. Apart from the United States, Germany has the most Bitcoin nodes. With a smaller population and GDP, it demonstrates an even stronger commitment to cryptocurrency. Over the last few months, there have been several good developments,”
The Monetary Authority of Singapore has taken action against Virtual Asset service providers. They are no longer allowed to run ads outside their own webs https://t.co/taaNNWvN3A #techstory via @techstoryin
— coincub.btc (@Coincub_) April 18, 2022
Moreover, Coincub’s CEO, Sergiu Hamza, said that his company aims to provide the most precise image of recent crypto developments. It scores crucial variables including:
- Fraud incidences
- Talent (the availability of digital asset courses from major institutions)
- The number of ICOs in each region using a scoring algorithm.
In addition, the Netherlands, France, and Spain are among the countries that have increased their crypto-friendliness. They’ve risen, according to Coincub, because they all have a positive mentality toward the industry. In addition, the number of crypto transactions has increased, as has the number of blockchain startups.
On the other hand, Switzerland is in the top ten. This was driven by rumors that the city of Lugano, in the country’s south, is preparing to accept bitcoin as legal currency.
Two Main Reasons Why Is Germany in the First Position
We will list a few reasons that led Germany to the first place in the ranking of crypto-friendly countries:
- Tax-Free: Germany is one of the few countries where cryptocurrency is already tax-free. Unlike the rest of the European Union, Germany encourages private investors to keep their cryptocurrency profits. It exempts Bitcoin and other cryptocurrencies from capital gains taxes if kept for at least a year.
Funds that are exchanged before the end of the fiscal year are still tax-free if the profit is less than €600. Furthermore, corporations must still pay the same taxes on crypto earnings as they would on other types of income.
- Fewer Limits in Crypto Investments: Spezialfonds or funds open only to institutional investors in Germany’s primary investment vehicle. They can now invest up to 20% of their portfolios in cryptocurrency. If all of the spezialfonds invested the maximum amount, Germany could see up to $415 billion flow into digital currencies.
This trend is bringing digital currencies into the traditional, regulated system. It could have a significant impact on retail investors in the future. These funds may manage insurance plans and retirement funds, for example. Furthermore, this trend may lead to additional regulation and legitimization. Also, it could push adoption in the retail investment space.
Two More Reasons:
- In terms of cryptocurrency transactions, Germany has experienced several changes in recent months. Coinbase’s German arm was granted a crypto custody business license by the Federal Financial Supervisory Authority earlier in 2022.
- Deutsche Boerse, the German stock exchange operator, has launched more than 20 crypto exchange-traded products on its digital exchange, Xetra.
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