Hong Kong is the Most Crypto-Ready Country: Study

According to a recent study by Forex Suggest, Hong Kong is the most prepared nation for crypto evolution, topping the likes of the United States and Switzerland, which came in second and third positions, respectively.

Hong Kong Leads Crypto Evolution
The study was based on four criteria: the number of cryptocurrency ATMs available, crypto regulation and taxation, the number of blockchain startups, and the countries with the highest number of interests in the crypto industry.

The report revealed that Hong Kong topped the chart as it came out first among the top three crypto-ready countries, followed by the U.S. and Switzerland.

Although the island nation came out third in the list of countries with the most crypto ATMs per 100,000 people, it topped the chart under the categories of countries with the smallest area per crypto ATM.

As per the report, Hong Kong’s city-state has the smallest area of crypto ATMs per 100,000 people, with residents living approximately 7 kilometres away from the ATMs.

Countries With Lowest Crypto Taxes
In addition to having the smallest area of crypto ATMs, Hong Kong was positioned among the top seven nations with the lowest crypto taxes as profits generated from the sale of digital assets are exempt from capital gains imposed on traders.

This puts Hong Kong on the list of countries yet to implement tax rules on capital gains, making the nation an attractive hub for crypto investors and traders. The region recognises crypto assets as virtual commodities and not as currency.

Countries With The Most Blockchain Startups
Hong Kong was also positioned among the top three countries with the most blockchain startups, with Switzerland ranking first.

The study found that the nation is among the key players in developing blockchain technologies and adoption in Asia.

Hong Kong has approximately three blockchain-affiliated companies per 100,000 people, closely following Switzerland, which has 12.9 blockchain startups per 100,000 residents.

Meanwhile, earlier this week, Hong Kong’s Financial Secretary Paul Chan Mo-Po disclosed that the government plans to launch an HKD 5 billion ($637 million) Strategic Tech Fund next month for local tech companies seeking to reach unicorn status.

The funding will also attract foreign tech firms to settle in the region and help drive investments into the sector. Hong Kong has about 600 fintech companies, with 7% of the firms focused on leveraging blockchain technology.