Dubai has been named as the second largest crypto hub globally, according to recent research.
The city was ranked second in the crypto readiness index created by Recap, a crypto tax software company, with London taking the top spot.
The index is based on eight factors including the number of crypto workers and companies, crypto events, quality of life, and research and development spending as a percentage of GDP in each city.
Dubai’s 0% tax policy, high quality of life, and large number of crypto-based companies (772) have made it a desirable location for crypto investors.
The report noted, however, that despite these efforts, Dubai still lags behind London, which has the highest number of people working in the crypto industry and a thriving crypto scene with over 800 companies. New York, Singapore and Los Angeles have also shown strong potential in the crypto space, taking the third, fourth and fifth spots respectively in the index.
Daniel Howitt, co-founder and CEO at Recap, said, “Crypto assets have grown massively over the past few years, and are becoming increasingly interlinked with the regulated financial markets, and the fact that so many cities are embracing it is a positive sign. Dubai being the world’s second largest crypto hub is good news for the government, who plan to launch their own digital currency by 2026.”
According to Howitt, the research also showed that the world’s least developed countries are significantly less prepared to become crypto-hubs.
“Lack of infrastructure, foreign investment, and skilled workforce in the area may explain why some are lagging behind. This could cause barriers to trade with more developed crypto-hubs in future – so it’s important they’re all given the opportunity to get up to speed.”
“While Dubai excels in attracting crypto companies and jobs as a tax haven, the city falls behind when it comes to crypto events on offer and R&D spend. More investment in these areas could advance its position as a global crypto-hub.”
Other cities within the top 10 of the index include Zug in Switzerland ranked 6th followed by Hong Kong, Paris, Vancouver and then Bangkok.
