Source: Cointelegraph
Original: “Who has the charm, capital, and code to become a cryptocurrency hub?”
Kazakhstan, the Maldives, and Pakistan have recently expressed their ambition to position themselves as cryptocurrency hubs and develop their digital economies.
Historically, these countries have not been the preferred locations for global cryptocurrency companies—although Kazakhstan briefly became a popular destination for Bitcoin (BTC) miners after China implemented a mining ban.
Meanwhile, established financial centers are competing to become the world’s leading cryptocurrency hubs, striving to find a balance between regulation, talent, capital, and infrastructure.
Here’s how five regions are supporting their cryptocurrency dreams.
Singapore has long stood out as a financial center, boasting its AAA credit rating, low corporate tax rates, and business-friendly regulatory environment. With the rise of digital assets, this Lion City ranks high in the cryptocurrency hub race.
Singapore is one of the pioneers in cryptocurrency regulation. Its 2019 Payment Services Act (PSA)—which took effect in 2020—is one of the first comprehensive legal frameworks in Asia covering cryptocurrency activities.
The PSA uses the term “Digital Payment Tokens” (DPT) to define value digital representations that can be electronically transferred, stored, or traded—such as cryptocurrencies.
As of the time of writing, the Monetary Authority of Singapore (MAS), the central bank of the city-state, has issued licenses to 33 DPT service providers. Casper Johansen, co-founder of Spartan Group based in Singapore and Hong Kong, noted that the pace of license approvals has been cautious, allowing faster-moving centers like Dubai to catch up.
“Singapore is more of an institutional financial center rather than a retail financial center,” Johansen said, alluding to the city-state's restrictions on cryptocurrency marketing to retail investors.
“The ban on retail marketing has not affected Singapore’s status as a global cryptocurrency hub. Cryptocurrency companies choose to set up headquarters in Singapore because of low and transparent taxes, a strong regulatory framework and rule of law, top-notch professional services, a convenient living environment, and global connectivity,” Johansen added.
However, recent cracks have emerged, particularly regarding immigration and hiring policies. Concerns were raised when Alex Svanevik, CEO of blockchain analytics firm Nansen, shared that he was denied permanent residency at the end of 2024. The government has intensified its focus on prioritizing local hiring due to increasing political sensitivity towards foreign labor.
Unlike other cryptocurrency center competitors, Dubai has a dedicated digital asset regulatory authority—the Virtual Assets Regulatory Authority (VARA).
Its extensive licensing system provides clear guidance for activities, including NFT platforms—an issue that larger economies like the EU have yet to resolve. The EU’s Markets in Crypto-Assets Regulation (MiCA) currently excludes NFTs.
The clarity provided by VARA is attractive to companies frustrated by regulatory uncertainty elsewhere. Binance, a borderless exchange without an official headquarters, has had to reconsider this model under global regulatory pressure—while its ties to the UAE are strengthening.
Former CEO of Abu Dhabi Global Market Free Zone Richard Teng succeeded Zhao as CEO of Binance and recently hinted that the UAE is a strong candidate for the exchange's headquarters, although no final decision has been made.
The UAE also offers its own incentives, such as no personal income tax, and free zones like the Dubai Multi Commodities Centre (DMCC) and Dubai International Financial Centre (DIFC), which provide 0% corporate tax benefits and 100% foreign ownership.
Cryptocurrency companies report that obtaining banking services in Dubai is easier, which is an improvement compared to the challenges faced by companies under the U.S. “Operation Chokepoint 2.0.”
Hong Kong has long served as a financial gateway to mainland China, where cryptocurrency activities such as mining and trading remain banned.
Previously, the city had a voluntary licensing system, with only OSL and HashKey authorized to provide services to institutional and professional investors. In Hong Kong, professional investors are legally defined as individuals with a portfolio of at least HKD 8 million (approximately USD 1 million).
This was later updated to a mandatory licensing system, launched in 2023, which opened the door to retail investors.
The shift to mandatory licensing marks a turning point. OSL and HashKey became the first exchanges authorized to serve retail investors, while companies like Bybit and OKX withdrew their applications and exited the market. As of now, 10 platforms have been licensed, while 15 have either withdrawn or been denied.
Hong Kong has also made further progress in listing Bitcoin and Ethereum (ETH) ETFs and recently approved staking within Ethereum ETFs, which has not yet been permitted in the U.S. It has also introduced a stablecoin sandbox under the supervision of the Hong Kong Monetary Authority to experiment with approved digital assets in a controlled environment.
“The sandbox is an experiment, and so is the staking ETF,” said Kelvin Koh, co-founder of Spartan Group. “The key is that these experiments are taking place in Hong Kong.”
Recently, Hong Kong released the ASPIRe roadmap in February 2025, aimed at promoting blockchain innovation and filling regulatory gaps to establish the city as a global cryptocurrency hub.
In the U.S., cryptocurrency companies have been caught in a regulatory stalemate under former SEC Chairman Gary Gensler, whose aggressive “regulation by enforcement” strategy has led to years of legal battles.
This situation changed with the inauguration of President Donald Trump, who took a pro-cryptocurrency stance. The SEC subsequently dropped several high-profile cases and investigations, including those against Coinbase, Uniswap, and Consensys, indicating a shift in the regulatory environment, preparing to welcome cryptocurrency back to the U.S. mainland.
President Trump announced that the U.S. would become the future capital of artificial intelligence and cryptocurrency. Source: The White House
Binance.US resumed USD services in February after facing enforcement actions from the Commodity Futures Trading Commission, a $2.7 billion settlement, and four months of restrictions on former CEO Zhao Changpeng.
Competitor exchange OKX re-entered the U.S. market in April 2025 after reaching a $500 million settlement with the Department of Justice. Similarly, in April, Nexo announced the revival of its U.S. ambitions at an event attended by Trump’s son, after the company abandoned this plan in 2022.
Traditional finance is also heating up, with institutional investments pouring into Bitcoin and Ethereum spot ETFs offered by some of the world’s largest asset management firms, including $11.5 trillion giant BlackRock.
The financial mutual attraction is bidirectional, as cryptocurrency companies are also increasingly willing to integrate into existing U.S. infrastructure.
Galaxy Digital went public on Nasdaq on May 16, Circle is considering another attempt at an IPO, and Hong Kong-based blockchain unicorn Animoca Brands is now eyeing a New York listing, citing Trump’s stance on cryptocurrency.
The world’s largest financial center, New York City, is also taking action. Mayor Eric Adams stated on May 12 that New York “is open for business to cryptocurrency companies.”
In 2023, then-Prime Minister Rishi Sunak launched an ambitious vision to make the UK a global cryptocurrency hub, pushing for stablecoins to be recognized as regulated payment instruments and outlining a broader framework for integrating cryptocurrencies into the national financial system.
This momentum has translated into concrete actions: In April 2025, the UK Treasury released near-final legislation aimed at bringing crypto assets—such as trading platforms, stablecoins, and staking services—under national regulation.
The Financial Conduct Authority (FCA) is now consulting on how to regulate intermediaries, lending, and other core parts of the ecosystem, indicating that regulatory developments are ongoing.
However, despite the regulatory mechanisms continuing to operate, political will has cooled. As Arvin Abraham, a partner in the private equity group at Goodwin Procter, told Cointelegraph, cryptocurrency was once at the core of Sunak’s competitive agenda, but this focus has faded under the current Labour government.
The new financial services growth and competitiveness strategy led by Chancellor of the Exchequer Rachel Reeves prioritizes fintech but does not focus specifically on cryptocurrency.
“The UK doesn’t feel like it prioritizes cryptocurrency as it did a few years ago,” Abraham said.
Abraham added that the UK remains “one of the best places to set up new startups,” especially in terms of early-stage capital raising.
He pointed out the generous tax incentives for angel investors and the unique blend of finance and startups in London, calling it “one of the most conducive cities for fintech businesses globally.”
In this sense, even without eye-catching cryptocurrency policies, the structural appeal of the UK continues to attract Web3 companies—just now the backdrop is quieter.
Related: Strategy firm spends $765 million to acquire 7,390 Bitcoin (BTC), then faces a class-action lawsuit.
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