Author: Multipolitan

Compiled by: Felix, PANews

We are currently witnessing a reshaping of global financial and technological centers. Wealth, talent, and innovation are actively migrating from jurisdictions that hold a hostile attitude towards cryptocurrency to cities that openly embrace blockchain and digital assets. Identifying the most crypto-friendly cities is not only crucial but also insightful. The future of finance, innovation, and talent flow is being rewritten—understanding this shift is essential for anyone looking to stay ahead in a rapidly evolving environment.

The Next Global Financial Center Will Be Dominated by Cryptocurrency

The next global financial center will not only accept cryptocurrency but will thrive on it. Here are the reasons why the most successful cities of the future are heavily betting on blockchain and digital assets:

1. Regulatory Arbitrage: A New Game of Financial Power

Businesses, investors, and crypto pioneers are flocking to jurisdictions that offer a clear, consistent, and crypto-friendly regulatory environment. For example, Binance is strategically relocating its operations, while Coinbase is considering exiting the U.S. due to regulatory friction. Regulatory clarity is not just beneficial; it is essential.

2. Following the Money and Talent

Crypto-friendly cities like Dubai, Singapore, and Zug (Switzerland) are rapidly becoming magnets for wealth, innovation, and talent. In contrast, cities with hostile regulations may lose their competitive edge and face talent drain.

3. Cryptocurrency: A Parallel Financial Revolution

Governments that actively adopt cryptocurrency can gain new investments, tax revenues, and economic growth. Those that resist or over-regulate face the risk of capital flight and severe consequences from talent loss. Cryptocurrency is not just an asset; it is an economic catalyst.

4. Digital Nomads and a Multipolar Future

Wealth in cryptocurrency knows no borders, and its holders are increasingly embracing a "multipolar lifestyle"—strategically diversifying their residences and assets across jurisdictions that support cryptocurrency. Stability, low taxes, and innovative policies are no longer just attractive conditions; they are prerequisites for cities to attract sovereign individuals shaping the future economy.

5. First-Mover Advantage: The Winner-Takes-All in Cryptocurrency

Cities that embrace cryptocurrency early are gaining significant economic advantages. El Salvador has jumped from obscurity to become a global Bitcoin center, while Dubai's fintech-friendly policies have made it a global financial hub. In the crypto space, first movers are not just ahead; they dominate.

The global financial landscape is changing. Cities that quickly embrace cryptocurrency are not only enhancing their influence but also solidifying their positions as future financial centers.

Where is Crypto Wealth Flowing?

Crypto-friendly centers: Dubai, Singapore, Zug (Switzerland), Lisbon, Miami, Puerto Rico, Hong Kong (recently reorienting towards crypto-friendly).

Jurisdictions losing crypto talent: Parts of the U.S. (regulatory hostility), China (bans leading to talent outflow), parts of the EU (unclear regulatory paths in some countries).

How to Identify Crypto-Friendly Cities?

Most crypto-friendly indices focus solely on tax incentives, but the reality is much more complex. While tax policies are important, regulatory clarity, legal frameworks, and the level of practical application are equally crucial in determining a city's crypto-friendliness.

The "2025 Cryptocurrency City Index" goes beyond superficial metrics. Its methodology includes multi-indicator analysis to present a comprehensive picture. Initially, 27 cities were pre-selected based on five national-level criteria to ensure alignment with the thriving crypto ecosystem. Key focuses include:

• Clear legal status for cryptocurrency: A stable and predictable regulatory framework.
• Strong economic growth: Cities that provide robust macroeconomic conditions for business development. High-growth cities can offer better business opportunities, investor confidence, and a solid financial infrastructure supporting crypto businesses.
• High-income categories—wealth centers driven by both retail and institutional participants in cryptocurrency adoption.
• Quality of life—cities that rank high in happiness indices at both national and city levels, ensuring the long-term sustainability of cryptocurrency adoption. A city must be not only business-friendly but also livable. Factors such as healthcare, safety, and cost of living influence the choices of crypto entrepreneurs, digital nomads, and investors.
• Not just a regulatory safe haven: The best cryptocurrency cities should not only be regulatory havens but also places where talent wants to settle and grow.

Combining these factors, the first cryptocurrency city index was created to provide a snapshot of where digital finance can truly thrive and where cryptocurrency can genuinely integrate.

After identifying 27 cities, their "cryptocurrency integration" was assessed based on five indicators:

• Regulatory Environment: Evaluating national regulations by analyzing local tax policies, licensing frameworks, and incentive programs, and using a three-point scoring system based on comparative analysis.
• Tax System: Considering different legislative conditions, the highest potential capital gains tax rate was used to assess tax impact. Scores range from 1 to 3 based on comparisons with the sample average.
• Wealth and Lifestyle: Measuring the economic health of cities using GDP per capita and housing prices, which represent investment potential and quality of life, respectively. Scores were derived by comparing data with averages, using a weighted average where city-level housing data carries more weight.
• Digital Infrastructure: Measuring connectivity and technological readiness through indicators like internet speed and smart city rankings. This score reflects the extent to which each city's infrastructure supports cryptocurrency activities, categorizing cities into high, medium, and low levels.
• Crypto Infrastructure: Analyzing the presence of cryptocurrency ATMs and retail adoption rates to reflect the level of cultural penetration of cryptocurrency in each city. Cities with a high concentration of these assets scored the highest, showcasing their leadership in cryptocurrency integration.

Each indicator contributes to the total score, with the cryptocurrency culture weighted double to highlight its importance. The final score is adjusted on a 180-point scale to determine rankings, focusing on cities that possess legal, economic, and infrastructural advantages to attract crypto enthusiasts and investors.

Multipolitan 2025 Cryptocurrency-Friendly Cities Index

The New Financial Centers of the Future

The global financial landscape is no longer dominated solely by traditional financial centers like New York or London. The rise of crypto-friendly cities is changing this dynamic.

Crypto-friendly cities: Abu Dhabi, Ljubljana, Luxembourg City, Muscat, Nicosia, Lisbon, Riga, Singapore, Zurich—each city offers a clear legal framework and attractive tax systems.

Top smart cities: Zurich, Oslo, Singapore, London, Abu Dhabi—ranking high in the IMD 2024 Smart City Index, proving that crypto-friendly cities are also leading in technology and infrastructure.

Leaders in cryptocurrency ATMs and merchants: Sydney tops the list with 330 cryptocurrency ATMs and retail points, followed by Hong Kong (201 ATMs) and Ljubljana (155 ATMs), as these cities integrate cryptocurrency into the real world.

Moreover, speed and connectivity are the foundations of the digital economy, and connectivity drives the adoption of cryptocurrency. Abu Dhabi, Doha, and Oslo boast top internet speeds of 398 Mbps, 265 Mbps, and 205 Mbps, respectively, enabling high-frequency trading, digital finance, and seamless blockchain transactions.

Mapping the most crypto-friendly cities aligns perfectly with the industry's borderless ethos. As people and capital seek favorable jurisdictions, the demand for consulting services that help high-net-worth individuals migrate, start businesses, and manage assets will continue to grow.

How is Crypto Wealth Concentrated?

Simply tracking how many people own cryptocurrency is no longer sufficient. It is equally important to understand who holds significant amounts of crypto wealth. The situation is starkly different between millions of users holding small amounts of cryptocurrency and a few crypto giants dominating the landscape. Multipolitan's Crypto Wealth Concentration Index combines cryptocurrency ownership rates and trading volumes (adjusted for inequality using the Gini coefficient) to provide insightful analysis.

Cryptocurrency has transformed from a speculative novelty into a global financial phenomenon. As digital assets gain mainstream recognition, a key question remains: where is cryptocurrency wealth actually concentrated? To understand the emerging financial landscape, Multipolitan developed the "2025 Cryptocurrency Wealth Concentration Index," which not only reveals cryptocurrency adoption but also showcases the actual concentration of cryptocurrency wealth globally.

Multipolitan 2025 Cryptocurrency Wealth Concentration Index

Global Leaders in Cryptocurrency

UAE—The global leader in adoption. The UAE has 25.3% of its population holding cryptocurrency, leading in adoption rates due to proactive government policies and clear regulations, making cities like Dubai thriving cryptocurrency hubs.

India—The digital giant. India has 118.9 million cryptocurrency holders, making it the largest cryptocurrency community globally. Despite regulatory hurdles, its retail investors drive massive market participation, highlighting India's growing influence.

United States—Still the dominant player in capital flow. The U.S. is home to some of the largest exchanges and institutional investors globally, dominating trading volumes at $2.07 trillion. Such massive trading activity makes the U.S. a key node in the global cryptocurrency financial landscape.

Slovenia, Cyprus, and Hong Kong—Small countries, big impact. Slovenia has the highest per capita cryptocurrency trading volume, averaging $240,000 per person, indicating high user trading activity and wealth concentration. Cyprus averages $174,000, and Hong Kong averages $77,000, making these regions centers of cryptocurrency wealth concentration.

A Future Without Borders, Constantly Changing

Crypto wealth no longer belongs solely to traditional financial centers like New York, London, or Singapore. It is borderless, constantly evolving, and finding new homes at the intersection of innovation and clarity. Cities and countries that embrace these dynamics will lay the groundwork for the next financial era. The future financial capital is believed to be in the cryptocurrency age.

This index is not just data; it is a strategic tool that can guide decisions regarding migration, business growth, and asset management. Understanding where today's crypto wealth is concentrated will determine the future global financial landscape. The question today is not who is adopting cryptocurrency, but who will control the vast wealth of cryptocurrency in the future. The competition for the ultimate crypto capital is heating up.

Related reading: A Panorama of Cryptocurrency Taxation in Asia: What Are the Key Points?

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