Germany leaves the US behind in top crypto economies in Q3: Report

The United States, which was the joint top-ranked crypto economy last quarter along with Germany, fell to seventh place in the rankings.

Germany has become the most favorable crypto economy in the world in the third quarter of 2022, according to a new report. The United States, the joint top-rank holder from last quarter, fell six places to rank seventh on the top crypto economy.

The crypto economy rankings compiled by Coincub looked into various factors such as favorable crypto outlook, clear crypto tax rules, more transparent regulatory communications and more to rank countries.

Germany although not a tax haven, is considered one of the strongest all-around ‘traditional-tax’ crypto economies that reward long-term crypto holders. German law charges zero tax on crypto holdings of over a year.

Switzerland ranked second with its positive crypto regulatory stance and is home to some of the top crypto organizations in the world. The next three spots on the list were acquired by Australia, UAE and Singapore, respectively.

Australia has shown a great appetite for crypto and the government has been equally supportive of it over the past year, pushing positive crypto legislation along with reasonable tax policy. UAE has invested heavily in Web3 and has a very attractive zero-tax policy on crypto gains. Singapore, on the other hand, has established itself as a crypto powerhouse in Asia, with a significant chunk of the population involved in crypto trading and investment.

The U.S dropped to the seventh spot due to its unfavorable crypto tax policy and lack of clarity on the regulatory end. However, the report highlighted that the U.S is the only country to allow crypto to form part of strategic workplace pensions. With some key crypto regulations legislature under work, the U.S could see a significant improvement in its rankings by next quarter.

Related: Germany and the US share the top spot in the global crypto rankings

Among the top crypto-curious nations determined by the number of “Bitcoin” related searches, El Salvador topped the list again, followed by Nigeria and the Central African Republic.

The Vietnam population was found to be the biggest hoarders of crypto, with over 20 million or nearly 20% of the population invested in crypto. The U.S has over 46 million crypto holders or nearly 13% of the population invested in crypto.