Global Crypto Investment: Who Leads The Pack?

Cryptocurrency is becoming increasingly popular worldwide, with some countries adopting it more than others. A range of factors, from remittance payments to the high cost of traditional cross-border transactions, have led to the rise of crypto usage. While some countries have embraced the shift, others have implemented bans. So, which countries are investing most heavily in this digital currency?

Which countries have the most Bitcoin holders?

Several countries have high numbers of Bitcoin holders, with the United States, Thailand, Nigeria, the Philippines, and South Africa all ranking highly.

According to a 2021 report from Finbold, 20% of Thai residents hold some form of crypto, with Nigeria, the Philippines, and South Africa close behind at 19.4%. The US has the most crypto owners in terms of volume, with roughly 13% of the population (or 46 million people).

Other countries with high numbers of Bitcoin holders include the United Kingdom, where 20% of the population owns crypto, and Singapore, where 30% of the population owns crypto. Notably, 44.2% of Singapore's crypto holders own Bitcoin, the highest percentage among the top five countries.

While not among the top holders, Brazil stands out as a country with a high percentage of its population owning Bitcoin, at 6.98%, or approximately 16 million people.

It is worth noting that the data on crypto ownership varies across sources and is challenging to track due to the anonymized nature of cryptocurrencies.

Which countries have the highest raw cryptocurrency transaction volume?

While it is challenging to track crypto usage in every country, blockchain analytics firms like Chainalysis have developed ways to gauge Web3 adoption in different regions. In its annual Global Crypto Adoption Index, Chainalysis uses five metrics to track crypto usage in hundreds of countries. These metrics include the total cryptocurrency value on centralized crypto exchanges, retail trading on these exchanges, peer-to-peer crypto transaction volume, crypto value used in DeFi protocols, and retail activity in DeFi.

According to Chainalysis, the United States is the world's largest crypto market in terms of raw transaction volume. India ranks second, with volumes totaling nearly $269 billion from July 2022 to June 2023. Central and Southern Asia and Oceania account for 20% of the world's crypto market, with Vietnam, the Philippines, and Pakistan showing significant adoption.

While the United States and India lead in raw transaction volume, other countries have higher crypto adoption rates. Chainalysis's 2022 Global Crypto Adoption Index ranked Vietnam, the Philippines, Ukraine, and Thailand among the top five countries for crypto adoption. These rankings consider factors such as purchasing power and the proportion of the population using cryptocurrency.

It is worth noting that the use of cryptocurrencies can vary based on economic situations and purposes, such as investment, payment, or portfolio diversification. As such, the countries with the highest raw transaction volumes may not necessarily have the highest adoption rates or the most significant number of crypto owners.

Which countries are leading the way in grassroots crypto adoption?

Several countries are leading the way in grassroots crypto adoption. According to Chainalysis' 2023 Global Crypto Adoption Index, India ranks the highest in grassroots crypto adoption. Nigeria and Thailand are also among the top three countries in this index, with lower-middle-income (LMI) nations leading the way in the grassroots adoption of cryptocurrencies. Central and Southern Asia and the Oceania region dominate the top of the index, with six of the top ten countries located in this part of the world.

Other countries with high rates of cryptocurrency use include Vietnam, the Philippines, and Nigeria, which had the highest rate of cryptocurrency use in a Statista Global Consumer Survey of 74 countries. In Africa, Nigeria has the highest rate of cryptocurrency use, with 33% of Nigerians using or owning cryptocurrency. In Latin America, Peru leads the region in crypto adoption, followed by Brazil, Colombia, Argentina, Mexico, and Chile.

While the United States has the largest number of Bitcoin holders, it is important to consider that it also has the largest population. Additionally, China has a high volume of Bitcoin trading, but its current regulatory actions towards cryptocurrencies may impact the number of holders in the future.

Which countries have the most favourable regulatory environments for crypto?

Several countries have been recognised for their favourable regulatory environments for cryptocurrencies. These countries are generally referred to as "crypto-friendly".

Switzerland, for example, is considered a crypto-friendly country due to its favourable regulations and progressive stance on cryptocurrency. It attracts many blockchain and crypto companies by offering clear guidelines for ICOs and low taxes on crypto profits for individuals and businesses. Cryptocurrencies are taxed under the Wealth Tax system, and private investors are exempt from capital gains taxes on personal wealth assets.

Singapore is another leading jurisdiction for cryptocurrencies and innovation. It offers tax exemptions for specific digital tokens and clear, flexible regulatory frameworks. Cryptocurrency businesses are not taxed on capital gains, and individuals are exempt from taxes on crypto profits, except for those from trading.

Malta, also known as Blockchain Island, has attracted major players in the crypto industry with its progressive regulations and favourable tax policies. It offers legal certainty for crypto businesses and fosters innovation and growth in the industry. Crypto transactions are not subject to capital gains taxes.

Portugal is also recognised as a leading crypto-friendly country. It offers a positive stance on cryptocurrencies, a favourable tax system, and clear regulatory frameworks. Cryptocurrency-related profits are tax-free, and transactions are not taxed with VAT or personal income tax.

Other countries with favourable regulatory environments for cryptocurrencies include Estonia, Germany, Slovenia, Canada, Japan, and El Salvador. These countries offer a combination of supportive regulations, tax incentives, well-developed infrastructure, and government initiatives to support blockchain innovation and attract businesses.

It is worth noting that the regulatory landscape for cryptocurrencies is constantly evolving, and countries may adjust their approaches to balance innovation and risk management.

Which countries have the most crypto ATMs?

As of May 2024, there were Bitcoin ATMs in 73 countries and territories worldwide. The United States has the highest number of Bitcoin ATMs, with over 34,000 machines across the country as of January 2024. This accounts for approximately 83% of global ATMs. The state is considered the world's most "crypto-ready" country due to its abundance of crypto ATMs, high public interest, and the government's stance on digital currency ownership.

Canada is second on the list, with over 2,500 Bitcoin ATMs. Canada was the first country to approve the regulation of cryptocurrencies in 2014, and it was also the first country to open a Bitcoin ATM in Vancouver in 2013. The United Kingdom is third, with over 1,500 machines, followed by Austria with over 900, and Spain with over 800. These countries have seen a rise in the number of Bitcoin ATMs due to their supportive regulatory environments and increasing public interest in cryptocurrencies.

Other countries with notable numbers of crypto ATMs include Germany, Australia, El Salvador, and Italy. The distribution of crypto ATMs is not uniform across the globe, with some countries having significantly more machines than others. The availability of these ATMs provides users with an easy and convenient option to buy, sell, and trade cryptocurrencies.

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