London named World’s Leading Cryptocurrency Hub

Research conducted by cryptocurrency tax software company Recap has found that when it comes to cryptocurrencies, London has become the world’s leading hub for it. A total of eight indicators were analyzed by the researchers, including the quantity of crypto ATMs in each country.

Recap, a UK-based crypto tax company, has released a report on January 26, 2023, featuring the top cryptocurrency hubs worldwide, with London crowned the “most crypto-ready city”.

Recap’s expert researchers studied eight key data points that determine crypto-readiness of the most populated cities all over the world, which include:

  • Crypto companies
  • Crypto-specific events
  • Capital gains tax rate
  • Number of crypto ATMs
  • People working in crypto-related jobs
  • Quality of life score
  • R&D spend as a percentage of GDP
  • Ownership of crypto in each country

Compared to other global regions, London has the most people employed in the cryptocurrency industry. The city is home to more than 800 cryptocurrency-based companies and it also hosted the second-highest number of crypto-related conferences and events last year. London leading the pack aligns with UK Prime Minister Rishi Sunak’s goal of making the United Kingdom as the world’s hub for cryptocurrency investment and technology.

See the list of the world’s most crypto-ready hubs below:

The luxurious and most populated city in the United Arab Emirates, Dubai, comes as the second largest cryptocurrency hub. Dubai currently has 772 cryptocurrency-based companies. What makes Dubai appealing as a residence for crypto investors is because of its 0% tax rate, Recap said.

The third largest hub, New York, has 843 companies specializing in blockchain technology and cryptocurrency. The City of Dreams is also home to the biggest investment in cryptocurrency research and development.

Co-founder and CEO of Recap Daniel Howitt said:

“Crypto assets have grown massively over the past few years, and are becoming increasingly interlinked with the regulated financial markets, and the fact that so many cities are embracing it is a positive sign. London being the world’s leading crypto hub is good news for the government’s plans to make the U.K. a ‘global hub for crypto-asset technology and investment.’”

The top 3 crypto hub cities are London, Dubai, New York, followed by Singapore, Los Angeles, Zug, Hong Kong, Paris, Vancouver and Bangkok.

Researchers from Recap note:

“Hong Kong, Paris, Vancouver, and Bangkok complete the top ten due to low capital gains tax, high volume of crypto ATMs, and the number of people in the crypto field. Interestingly, San Salvador in El Salvador, came 41st in the table with only ten people working in crypto-based jobs – but is the only place where bitcoin is considered a legal tender. Residents are able to spend it like currency as shop prices are also quoted in bitcoin (BTC).”