What is a crypto hub? Over the course of this recent bull run, the macroeconomic landscape has changed dramatically. Two years ago most countries were reluctant to consider digital assets anything more than a novelty. Some were outright hostile to it and were implementing bans.
Fast forward to 2022 and the scenario is completely different. China is no longer the Bitcoin mining hub, India is no longer hostile to the industry, several crypto mining firms have listed on public stock exchanges and two countries have made it legal tender! Here are some of the most crypto-friendly hubs in April 2022.
El Salvador, The New Crypto Hub?
The first country to adopt Bitcoin as legal tender has made serious strides in attracting global blockchain talent. In March, the country wanted to raise funds through bonds backed by Bitcoin reserves. However, the upheaval in the debt market has put a dent in that plan. Nevertheless, the country remains committed to buying and holding BTC on federal balance sheets and has implemented a new citizenship-by-investment scheme for Bitcoin holders.
El Salvador has even inspired another country to adopt the digital asset as legal tender. Earlier this month, the Central African Republic adopted BTC as legal tender alongside its domestic CFA franc.
Singapore’s strategic location in Asia and relatively pragmatic economic policies have made it a top destination for blockchain developers and crypto startups. At the time of writing, there are over 433 crypto startups in the country. Matrixport, Enjin, Vauld, Ren, Cybavo, Altonomy, imToken, Kyber Network have all captured global attention in recent years. Now, the country is rolling out a slew of new rules and regulations that provide a framework for blockchain development and investments. Singapore’s relative stability has made it an ideal target for developers and investors seeking a foothold in Asia, but an alternative to Hong Kong.
Canada has been relatively receptive to digital assets and now has a first-mover advantage in publicly-listed securities. The Toronto Stock Exchange has nearly as many Bitcoin and Ethereum exchange-traded funds (ETFs) as all of Europe. These funds have attracted billions in capital from investors across the world.
Meanwhile, Canada’s climate and abundance of renewable energy have made it a prime destination for Bitcoin miners. The government has even offered a clear framework for crypto taxation, which makes it easier for entrepreneurs and investors to deploy capital in this sector. Canada is still one of the best destinations for digital assets.
One of Central America’s most prosperous nations became the latest sovereign state to adopt cryptocurrencies. Regulators in Panama recently introduced new legislation that permits the use of crypto assets for various use cases. The bill covers the issuance of digital securities, the use of crypto assets for payment systems, and the tokenization of precious metals.
These transactions of digital assets are also officially exempt from capital gains taxes. The bill, which passed with 38 votes, has put Panama on track to become an attractive hub for offshore crypto payments and financial services.