2021 has been a significant year for crypto, with some unexpected events happening to shake up how countries approach crypto and digital currency. Now the latest crypto ranking shows which countries lead the world for crypto adoption.
Today, Ireland-based financial tech start-up Coincub released its Global Crypto Ranking guide for Q4 2021. The rating is based on societal parameters such as government policy, financial sector acceptance, tax laws, regulations and legal requirements.
The ranking also takes into account quantitative data such as crypto ownership, bitcoin ATMs and spending opportunities.
Ranking criteria focuses on positive government legislation and the willingness of mainstream banks to offer custodial services. These two factors demonstrate that traditional institutions are buying into the crypto space within a country.
Institutional acceptance, Exchanges and wallets availability, Government regulation, DeFi acceptance, Financial services, transparency, crypto spending and banks' activity in crypto is also taken into account when producing the ranking.
In June 2021, El Salvador, which did not rank anywhere in Coincub's Global Crypto ranking in September 2021, made the decision to declare Bitcoin a form of legal tender.
This step into the unknown, which established economies are reluctant to take, has placed the country in 9th place position in the crypto ranking chart.
So far, no other country has declared any form of crypto as legal currency, and most categorise it as a digital asset, commodity or property.
On seeing the latest ranking compared to that released only three months ago, the movements in position demonstrate the volatility of the currency and countries' hesitance over the digital currency.
In this quarter's ranking of the world's most dynamic crypto countries for 2021/Q4, Singapore goes to number one from third place, and Australia moved up the ranking from sixth place to number two.
Thanks to its booming crypto economy, positive legislation, and the world's second-highest percentage of the crypto-owning population, Singapore has taken the top spot. The country also has a clear government strategy and regulations to provide reassurance to crypto-shy investors.
At number three in the list is the US with 1,821 Bitcoin nodes, 25,956 crypto ATMs, and it has the only crypto exchange listed on the stock market (Coinbase). The US lost its number one spot due to uncertain legislation around the currency.
Around 8% of the world's crypto owners live in the United States, topped only by Singapore and El Salvador.
China passed a ban on crypto trading and transacting, formally ending its involvement in the crypto economy and relinquishing its position as the world's most prolific Bitcoin mining country.
China is now ranked last in the list, closely followed by Russia, which banned the use of crypto for buying goods and services.
Sergiu Hamsa, CEO of Coincub, said: "Events are moving at breakneck speed in the crypto economy. In the last few months alone, bitcoin hit new price highs, driving renewed demand worldwide; El Salvador declared bitcoin as legal currency, and China banned it altogether."
Coincub predicts that there are a few countries to watch: Sweden, which appears to be a cashless society -- trialling the CBDC e-Krona digital cash system.
Also, Japan could be planning a possible reduction of tax on crypto gains. This is an interesting u-turn on last year's stance when Japan's finance minister disapproved a tax reduction on crypto.
Other countries to watch could be Denmark at number 22 and India at number 25 in the ranking. However, this week, other countries might pivot their views on adopting digital currency after the Kleiman V Wright verdict, and the 2022 ranking might look completely different.