Based on the data from a cryptocurrency tax company named Recap, London has turned out to be the leading hub for cryptocurrencies in 2023. The researchers have identified eight indicators to draw the conclusion, which involves the number of cryptocurrency businesses and several cryptocurrency ATMs in the nation.
Recap has released a report showcasing the leading cryptocurrency hubs across the globe. Various criteria were considered to draw out the conclusion.
London has emerged as the leading cryptocurrency hub based on the number of citizens employed in the cryptocurrency industry compared to other nations in the world. The city houses 800 cryptocurrency-based companies and organized the second-highest number of cryptocurrency-related events in 2022.
The researchers have further revealed that the achievement coincides with Rishi Sunak’s aim to make the U.K. the world’s base for cryptocurrency investments and technologies.
The list of the nations follows Dubai, one of the most populous nations of the UAE, as the second largest cryptocurrency hub.
The research by Recap has mentioned that Dubai has emerged as the largest cryptocurrency hub because of its 0 percent tax rate. Their studies have further revealed that Dubai has 772 cryptocurrency-based companies. The third city is New York which is the home to 843 firms specializing in cryptocurrency and blockchain technology.
In response to the rising industries based on cryptocurrencies, Daniel Howitt, the CEO, and co-founder of Recap, stated that Crypto assets have grown rapidly over the years and have become interlinked with the controlled financial markets. The fact that many cities have a dominant cryptocurrency market indicates a positive sign.
Furthermore, he has added that London is one of the dominant cryptocurrency hubs aligned with the U.K. government’s goal to establish the U.K. as the global hub for crypto-asset technology and investments.
The cities in the chart, including London, Dubai, New York, Singapore, Los Angeles, Zug, Hong Kong, Paris, Vancouver, and Bangkok have implied that they were able to establish low capital gains tax, high numbers of crypto ATMs, engage number of people in the crypto field.
The report has additionally stated that it came out to be a surprise that El Salvador has made it to the list in the 41 positions because it houses nearly ten people working in crypto-based industries. Moreover, it is the first region that has identified Bitcoin as a legal tender. It allows people to spend the cryptocurrency in the same manner as one does with his respective currency.
Does the Rishi-Sunak-led government have any backhand in London appearing as the leading crypto hub?
Previously, the U.K. has declared its long-awaited report on crypto regulations and has referred to consultations from the participants and experts before proceeding to the next stage. The regulations were enforced after Rishi Sunak expressed his plans to make the nation the leading crypto hub. The treasury has previously implemented laying out regulatory establishments for stablecoin payments.
Furthermore, they have announced a special division to handle crypto-related matters. The government has even attempted to hire blockchain experts for the operation of the new crypto unit. The Government has even asked for opinions from industry stakeholders.
The U.UKovernment has emphasized that cryptocurrency and its activities should meet the same standards as other financial institutions.
Last year, London experienced a drastic FTX collapse. To mitigate the situation, the government has laid out a new set of rules to prevent history from repeating. They have established rules stating that the policy would help to protect the investor’s interest. The assets will be returned to the investors when the custodians become insolvent.
The regulations have received positive responses from leading crypto hubs such as Binance.
The overall market cap of London accounted for 1.09 trillion USD.
Addressable.io, a technology that integrates data using social media and matches the crypto wallets, has risen by around 7.5 million in the seed round. The funding was led by Viola Ventures, Mensch Capital Partners, and North Island Ventures.
In 2022, traders in the London-based cryptocurrency market accumulated a profit of 2.3 million USD before the FTX collapse.
Wrap Up:
London has emerged as a leader in the crypto market, but will it last?
Based on the initiatives taken by the U.K. government in response to the FTX collapse, London will sustain the position of having a strong crypto base among the dominant cities of the world.
Edited by Prakriti Arora
