Investing in cryptocurrency can be a lucrative way to grow your wealth over time. However, the regulatory environment in different countries can impact the value of crypto assets. Countries with minimal regulations or no regulations concerning cryptocurrency tend to see higher increases in value. On the other hand, countries with strict regulations may struggle to establish themselves as leading crypto hubs.
Take, for instance, Italy’s recent decision to raise the tax on Bitcoin profits from 26% to 42% starting in 2025. This tax hike will apply to profits exceeding €2,000 (approx. $2,162). That would give Italy one of the highest crypto taxes in Europe. Italy is doing this because more and more people in the country are using Bitcoin. ​
Changes like this can make it tough for some countries to become big crypto centers of the world. Investors may find better opportunities in places with tax and rule systems that are more friendly to crypto, giving them a higher chance to make more money.
The Global Capital of Cryptocurrency- USA, Thailand or Dubai?
Here are three countries with the best possibilities of becoming the crypto capitals of the world.
1- USA
There’s a lot of hope in the American crypto market right now, especially with the promises made by a top presidential candidate. Trump is aiming to make the United States become a hub for all things crypto. He said this at the Bitcoin 2024 conference in Nashville, Tennessee, where 20,000 people had attended.
Trump has pledged some big moves, like letting go of the current SEC Chair, Gary Gensler, who’s been a controversial figure in the crypto industry. This possible change shows a move to friendlier crypto policies instead of unfriendly ones. Trump is pushing for less stringent laws and regulations on Bitcoin and other digital currencies.
The safety, anonymity, and fast transfer speeds of cryptocurrency make it particularly well-suited for industries that require rapid transactions, like finance and gaming, specifically online casinos. With Trump promising the end of tough regulations, There is growing optimism that online casinos in the US will soon support crypto. The adoption of crypto in online gaming and many other sectors will be a step towards cryptocurrencies becoming mainstream.
The Victory of Trump in the 2024 election on November 5th can impact these sectors. As a pro-crypto administration, it will encourage crypto use, allowing Americans to benefit from features like safety and fast transactions.
2- Thailand
Thailand is turning into the mecca of cryptocurrency-related businesses with zero tax on crypto earnings. In addition, crypto uptake in Thailand is at its highest. More and more people in Thailand, especially the younger population, are using cryptocurrency. The use of digital money in Thailand has gone up by 20% recently, showing that people are interested in it.
Moreover, Thailand’s tax laws are very attractive to investors. The tax rules for cryptocurrencies are friendly, with lower obligations that appeal to local and foreign investors. This is after the Thai Government exempted the collection of a 15% withholding tax on crypto. Unlike other places with high taxes on digital assets, Thailand’s tax system encourages people to invest in the market.
To protect consumers, Thailand has enacted very strict laws for crypto exchanges and initial coin offerings (ICOs). ​By reducing the risks involved, what Thailand wants is for more people to take part in the digital money world.
In addition, most businesses in Thailand now accept crypto tokens for daily transactions, making them more useful and valuable. Whether it’s buying food or booking travel, lots of places now welcome digital currencies, fitting into the trend of using them more widely. ​
Under the control of the Securities and Exchange Commission (SEC), Thailand have a clearly established legal environment for cryptocurrencies. To guarantee compliance with strict anti-money laundering (AML) and Know Your Customer (KYC) guidelines, the country mandates that all cryptocurrency exchanges register and license themselves under the SEC.
Thai rules also shows that exchanges follow strict security criteria and that crypto trading activities are liable to taxation. Thai traders should seek local professionals to keep updated about the most recent legal changes considering the changing character of rules.
Thailand’s attractiveness as a key spot in Asia pulls in global investors because of its clear rules, supportive environment, and fair tax system. ​
3- Dubai
Dubai has become a top global crypto hub by hosting renowned summits like the World Blockchain Summit and Future Blockchain Summit. These events have helped Dubai establish itself as a leading city for crypto and blockchain activities.
Dubai draws investors and companies looking to profit from crypto with its tax-friendly measures like having no income tax and low capital gains tax. The focus on financial growth creates an investment-friendly ecosystem perfect for crypto.
The city’s advanced digital infrastructure from initiatives like “Smart Dubai” seamlessly supports blockchain through reliable technologies. With super-fast internet connectivity, the city of Dubai can meet the tough tech needs of crypto businesses.
Moreover, Dubai’s Virtual Assets Regulatory Authority (VARA) enhances security using thorough KYC/AML procedures that give investors confidence. VARA guarantees safe transactions with minimal fraud risk.
Dubai’s advantageous position also provides convenient connections to different large markets in Europe, Asia, and Africa, from a single central point. It’s not surprising that many view Dubai as the ideal place to share their crypto aspirations globally. This is the reason, investors from different countries are moving to Dubai so they can reap the benefits of friendly crypto regulations.
Final Thoughts
In the race to become the global capital of crypto, each country—USA, Thailand, and Dubai—brings unique strengths to the table. The USA offers incomparable technological innovation and a mature financial ecosystem. While Thailand’s progressive regulatory environment and thriving fintech community make it a strong competitor.
Meanwhile, Dubai’s strategic position as a global trade hub and its forward-thinking policies have rapidly advanced its status in the crypto space. The crown will likely belong to the country that can most effectively balance innovation, regulation, and global integration, creating an environment where cryptocurrency can flourish securely and sustainably.
