London, UK ranked first
On January 26, Recap, a UK crypto asset (virtual currency) tax-related service company, released a ranking of cities around the world that have a good environment for introducing virtual currency and blockchain.
London in the United Kingdom ranked first, Dubai in the United Arab Emirates in second, New York in the United States in third, Singapore in fourth, and Los Angeles in the United States in fifth.
Among Japanese cities, Sapporo, which has a relatively high QOL and R&D ratio, ranked 13th, and Osaka, which has a relatively large number of virtual currency ATMs, ranked 19th. Nagoya, Shizuoka, and Fukuoka also ranked in after the 20th place, but Tokyo was outside the 50th place.
For the study, Recap found the 200 most populous cities in the world and measured the readiness (readiness) of their cryptocurrency efforts by comparing them across eight metrics. The following items are listed as indicators.
- Quality of Life (QOL)
- Number of virtual currency-related events held
- Number of people engaged in virtual currency-related business
- Number of cryptocurrency related companies
- Percentage of GDP spent on development and research
- Number of virtual currency ATMs
- capital gains tax rate
- Virtual currency holding rate
situation in london
London topped the list with 2,173 people working in cryptocurrency-related jobs, more than any other city. There are over 800 cryptocurrency-related companies.
In addition, Recap uses Linkedin, a business SNS, for the survey. In examining the number of people engaged in cryptocurrency-related activities, we confirmed the number of people registered on Linkedin with jobs that match the words “virtual currency”, “blockchain”, “Web3”, “bitcoin”, and “NFT”.
Additionally, London ranked second in the world for the number of cryptocurrency-related events. On the other hand, only 11% of people own or use cryptocurrencies.
Rishi Sunak, who is active in cryptocurrencies, was inaugurated as prime minister in the UK in October last year. During his tenure as Chancellor of the Exchequer, Mr. Sunak advocated making the UK a “hub for cryptocurrency technology,” and “strengthened the competitiveness of the tax system to promote the development of the cryptocurrency market. He showed various policies such as “to cooperate with the Royal Mint to issue NFTs”.
In October of the same year, the UK House of Commons also passed an amendment to the Financial Services and Markets Bill to regulate cryptocurrencies as financial instruments. The bill is currently being debated in the Senate.
connection: UK House of Commons passes bill to regulate virtual currency as a financial product
What are NFTs?
Abbreviation for “Non-Fungible Token”, a digital token that cannot be replaced and has a unique value. In addition to being used for exchanging “digital items” in blockchain games, it is also an epoch-making way for rights holders (creators) in the “secondary distribution market”, which was difficult to achieve with second-hand sales, as well as proof of ownership of high-priced art works. It is also attracting attention as a means of reduction.
situation in dubai
In second place is Dubai, which has 772 cryptocurrency-related companies. In addition, the capital gains tax (crypto asset tax rate) is 0%, making it an attractive environment for investors.
Dubai is in the process of setting up an environment to become the center of cryptocurrencies in the Middle East. In March 2022, it opened a new government agency, the Dubai Virtual Currency Regulatory Authority (VARA), dedicated to cryptocurrency licensing and supervision.
In July 2022, Crown Prince Hamdan of Dubai also announced the “Dubai Metaverse Strategy” to promote the Metaverse and blockchain industry. The aim is to create 40,000 jobs in the Metaverse and grow it into an economy equivalent to 530 billion yen ($4 billion).
connection: Dubai’s Metaverse Strategy “Grow to a market size of over 500 billion yen in 5 years”