Cryptocurrency adoption continues to grow globally, but some nations stand out for their progressive policies. According to Coincub’s research, Germany and the United States now rank as the world’s most crypto-friendly countries—though their approaches differ significantly.
Germany: Progressive Legislation and Tax Incentives
1. Forward-Thinking Crypto Laws
Germany earned its top spot due to its “progressive” crypto legislation, high investor participation, and extensive Bitcoin node network. The country’s tax policies further bolster its appeal:
– Zero capital gains tax on Bitcoin and Ethereum held for over one year.
– Contrasts with traditional assets (e.g., rental properties), which require a 10-year holding period for tax exemptions.
👉 Explore crypto-friendly investment strategies
2. Institutional Adoption
German institutions now view cryptocurrencies as viable long-term investments. Key developments include:
– Sparkasse savings banks (serving 50 million customers) rolling out crypto trading and custody services.
– Rank jump from #4 (2021) to #1 (2022), surpassing Singapore.
3. Blockchain National Strategy
Since 2019, Germany’s Blockchain Strategy has prioritized:
– Legal frameworks for tokenized securities and regulated ICOs.
– Licensed crypto-to-fiat exchange operations.
United States: Private Sector Innovation and Regulatory Milestones
1. Retirement Fund Integration
- Fidelity Investments allows 401(k) plans to allocate up to 20% to Bitcoin (employer-dependent).
- Debate continues over volatility risks for pension funds.
2. Mining and Infrastructure Leadership
- The U.S. hosts the highest number of crypto ATMs globally, installing 633 new units in July 2022 (88% of global additions).
- Benefited from China’s mining crackdown, absorbing displaced operations.
3. Policy and Adoption Trends
- Bipartisan efforts: Senators Lummis and Gillibrand propose pro-crypto legislation.
- Executive Order: Biden’s 2022 mandate established the first federal digital asset strategy.
- Retail adoption: 85% of U.S. retailers prioritize crypto payments; 50% invested $1M+ in infrastructure.
Global Rankings: Key Shifts and Takeaways
| Rank | Country | Notable Changes |
|---|---|---|
| 1 | Germany 🇩🇪 | Rose from #4 (2021) due to tax reforms. |
| 1 | USA 🇺🇸 | Surged via private demand and policy. |
| 3 | Singapore 🇸🇬 | Fell after banning Bitcoin ATMs. |
| 12 | UK 🇬🇧 | Crypto hub plans overshadowed by politics. |
Other Declines: Pakistan, South Korea, and China dropped sharply due to restrictive policies.
FAQ: Addressing Common Queries
Q: Why does Germany tax crypto differently than other assets?
A: The 1-year holding rule incentivizes long-term investment, contrasting with decade-long requirements for real estate.
Q: How does the U.S. lead in crypto infrastructure?
A: Dominates ATM installations and mining capacity post-China’s ban.
Q: Which factors hurt Singapore’s ranking?
A: Strict enforcement, including ATM shutdowns, reduced its crypto accessibility.
👉 Learn how to diversify with crypto
Final Notes:
– Analysis criteria: Government policy, taxation, startup activity, and CBDC progress.
– Excluded: Political controversies, unverified claims, and promotional content.