Singapore has become the global leader in crypto adoption due to its progressive regulatory approach towards the sector, according to the Henley Crypto Adoption Index 2024.
THE reportpublished by investment migration consultancy Henley & Partners, highlighted the city-state’s strong regulatory environment, fintech innovation and widespread public adoption as key factors propelling it to the top of the list. list.
Asia leads the top 10
The study evaluated 28 countries with investment migration programs, ranking them based on criteria including public adoption, infrastructure, innovation and technology, regulatory environment, economic factors and taxation advantageous.
Singapore received the highest overall score, with 45.7 points out of 60. The report noted:
“Singapore is driving crypto adoption through a supportive banking system, significant investments and comprehensive regulation.”
Among the country’s key regulatory frameworks is the Payment Services Act, which governs services related to digital payment token service providers.
Additionally, the Monetary Authority of Singapore (MAS) has led initiatives such as Project Orchid and Project Guardian, which tested the benefits of tokenization and facilitated the adoption of blockchain technology in the financial sector.
Hong Kong ranked second, scoring 42.1 in the index despite its relatively recent pro-crypto pivot. The report states that the region’s economic factors and taxation, coupled with advanced digital infrastructure and significant public interest, are the main drivers of crypto growth.
Like Singapore’s financial watchdog, the Hong Kong Monetary Authority (HKMA) has also been actively exploring opportunities related to digital assets. She recently launched the Ensemble project to study interbank settlements using a central bank digital currency (CBDC) and tokenization of real-world assets.
The United Arab Emirates ranks third, with a score of 41.8, almost tied with Hong Kong. The UAE surpassed Singapore and Hong Kong in terms of tax benefits, and the report praised the country’s innovative environment and strong government support for the crypto sector.
The UAE’s thriving startup scene and high levels of crypto ownership among the population have also been cited as contributing factors. Two other Asian countries – Malaysia and Thailand – were also among the top 10, ranking eighth and tenth, respectively.
To complete the top 5
The United States ranked fourth in the Henley Crypto Adoption Index, with 41.7 points, just behind the United Arab Emirates. The report highlights the United States’ strong performance in innovation and technology, driven by a vibrant fintech ecosystem and a high level of public adoption.
However, the report notes that the U.S. regulatory environment poses a “complex and sometimes challenging factor” for broader adoption. Despite this, the country’s technological advancements and economic influence make it a key player in the global crypto landscape.
The United Kingdom completes the top five with 36.1 points. The UK has been praised for its strong regulatory environment and economic factors, which have helped foster the growth of a crypto industry.
The country has seen a steady increase in public and institutional interest in digital assets, with the government taking steps to create a favorable climate for crypto businesses through clear regulations and support for innovation.
