Germany has moved up to now become the most crypto-friendly country in the world, according to Coincub’s ranking in the first quarter of 2022. The government has made crypto a desirable investment for citizens by allowing it to be used in its long-term domestic savings industry.
This gives people an excellent opportunity to put their money into legal investments instead of betting on point spreads at an online crypto sportsbook. There is also zero tax in Germany on long-term capital gains from crypto investments. As a result, it’s second in the number of Bitcoin and Ethereum nodes to the U.S.
German Crypto Investments
There is widespread acceptance of cryptocurrency in Germany as the government has accepted them as long-term investments. Sparkasse, the largest savings institution in the country, will soon offer crypto transactions to its members. The 50 million people will have the ability to trade and store Bitcoin. The company is also contemplating starting its crypto wallet.
More than half of Germans admit they are curious about crypto, while more than 40% of wealthy Germans own at least some crypto assets. Overall, about 17% of citizens own at least some cryptocurrency. The country also has one of the highest female crypto adoption rates in the world at 46%, according to the Gemini 2022 Global State of Crypto report.
Although they hold the top spot, Germany is still not receptive to decentralized finance. It recognizes crypto exchanges and wallet providers in the finance industry but doesn’t have specific regulations on the use of crypto.
Banks are also permitted to possess crypto. As far as the rate of user adoption, the most popular countries are Ukraine, Russia, India, and Venezuela. Germany currently has a 2.62% adoption rate, which is far from the top nations on the list.
How the Rest of the World Compares
Singapore was number one and has now fallen to second place. It is still considered a significant player in the worldwide crypto economy. The country’s adoption of new Bitcoin ATM restrictions saw them lose the number one spot. They have also placed restrictions on crypto advertising by not allowing Virtual Asset Service Providers to solicit customers outside of their individual websites.
Cryptocurrency technologies are accepted by Singapore, but the country has put a framework in place to regulate the industry. The new bill gives the country’s Monetary Authority greater power to decide who they think is unfit to perform activities within the financial industry. It also increases the penalty for any financial institutions which suffer cyberattacks or disruptions in their services.
Hong Kong was one of the biggest movers on the list, rising from 35th last year to number six in the current rankings. However, there has recently been an increase in crypto courses at leading educational institutions, which has helped with overall interest as the country has a high number of Bitcoin nodes and also many new blockchain associations.
Other Countries Make the Cut
Various other countries have moved higher on the list, with countries such as France, Spain and the Netherlands all improving their standings with a high number of transactions, positive regulation, and blockchain startups.
Switzerland has also moved up the list and has one area of the country, the Canton of Lugano, which recognizes Bitcoin as an official currency, making it legal tender. Japan and Romania have also risen up the chart, with China remaining at the bottom due to the country’s open ban on all crypto mining and trading.
France has been named the best Bitcoin trading country, according to a recent study by Invezz, which is an education and investing news platform. The study showed many countries that had performed well in the three metrics, which are the percentage of the population investing in crypto, Bitcoin gains per capita, and Bitcoin gains per investor. However, France was the only country to be above average in all three.