Coincub, a cryptocurrency data analytics firm and digital platform, released a Q3 report that rates the top ‘traditional-tax’ crypto economies across the globe. Compared to the Q2 information, where America shared the top position with Germany, America is currently in position six, above Hong Kong, as recorded in the Q3 report.
The sixth position that America currently holds is also owned by Malaysia, which moved up several steps from position 43 when Coincub first listed it in the Q2 report. Per the report, America dropped to position six because of a lack of regulatory precision. According to the details in the Q3 information, the U.S. could post much stronger Q4 ratings because rules and regulations concerning cryptocurrency investing and other uses are expected to be more precise in the coming future.
Why America Dropped to Position Six
One of the primary reasons that caused the U.S. to fall in rankings is the lack of clear crypto savings or investments regulations, which the U.S. has not yet implemented. This is because, to a more significant degree, the U.S. has not yet decided where it stands concerning cryptocurrencies; instead, it had more of a wait-and-grow-later attitude towards the cryptocurrency sector.
Contrastingly, the current number one and two nations, Germany and Switzerland, respectively, got to their high positions in the long-term crypto investing and savings ratings because, as demonstrated by the Q3 report, the two nations showed diligence towards embracing regulatory clarity early on in the industry’s first phase of development.
The U.S. still ranks high in this regulation condition since it was officially the first country to incorporate cryptocurrencies into strategic workplace pensions. This year has been full of discussions concerning regulations, as the SEC has fined companies and individuals and is engaged in an ongoing court battle in the Southern District of New York. The court battle is about claims that Ripple Labs conducted its business as unregistered security when it began making its XRP digital token available to the public.
Regulatory Clarity as an Opportunity for Incentives
As the U.S.deals with regulatory uncertainties, its ratings could move back to a higher position on the following rankings list again. This is because of the potential effects of regulatory clarity towards allowing tax, other incentives, and further possible crypto-friendly legislation to be made for crypto holders, users, and investors. The U.S. was ranked 12 in the tax condition per the most recent report, while Switzerland and Germany were rated at four.
The report indicates that the UAE has substantial tax advantages. It is one of the main reasons the country moved from position 18 to a position ahead of the U.S. and other nations as the third-ranked crypto economy worldwide, per the ratings recorded by the Coincub analytics and ranking system.
The UAE got one of the top rankings associated with crypto economies on the list in the tax situation, with a 10, with Bermuda, Belarus, and the Bahamas, following at positions 13, 12, and 11, respectively. The three got ranked fifteen in the tax ratings.
Banks and lawmakers seem to be growing nearer to accepting and making clear boundaries which could encourage cooperative and healthy relationships with the collective crypto industry. This could be a stepping stone for the U.S. and its position as a top-rated crypto economy worldwide for the upcoming ratings.