Immigration investment platform Multipolitan recently released its 2025 "Crypto-Friendly Cities Index," highlighting Asia's pivotal role in global cryptocurrency development. Hong Kong, Singapore, and Abu Dhabi all secured top-five positions, showcasing competitive advantages in regulatory frameworks, infrastructure, and market scale.
Do Crypto-Friendly Cities Invest in Cryptocurrencies?
While Hong Kong, Singapore, and Abu Dhabi offer robust infrastructure and investment ecosystems, this doesn't imply these governments directly hold cryptocurrencies. The United States remains the largest sovereign holder of crypto assets, with official reserves of ~207,189 BTC and 45,654 ETH — valued at ~$35.27 billion. Most crypto-friendly jurisdictions prioritize:
- Regulatory clarity
- Infrastructure development
- Private sector incentives
rather than national crypto portfolios. Few governments hold significant virtual currency reserves, preferring cautious market observation.
Performance Analysis: Top Crypto Hubs
1. Hong Kong (#2 Globally)
Score: 172/200
Key Metrics:
- $97K per capita crypto trading volume (#3 worldwide)
- 201 crypto ATMs (#3 globally)
Strengths:
✔️ Progressive licensing system for VASPs
✔️ 0% capital gains tax
✔️ High liquidity markets
👉 Explore Hong Kong's crypto regulations
2. Singapore (#4)
Score: 168
2025 Projections:
- $229.4M market revenue
- 3.4M users (55.9% penetration)
Advantages:
✅ MAS-regulated stablecoin framework
✅ 400+ Web3 startups
✅ Leading DeFi adoption in ASEAN
3. Abu Dhabi (#5)
Internet Speed: 398Mbps (fastest globally)
Market Potential:
- $254.3M estimated 2025 revenue
- 37.8% crypto adoption rate
Taiwan's Crypto Landscape: Growth Potential
Current Status:
- 567K crypto holders (#51 worldwide)
- 2.37% adoption rate
Opportunities:
📈 Young investors seeking alt-assets
🏦 Progressive VASP legislation underway
FAQs
Q: Which city has the most favorable crypto taxes?
A: Hong Kong (0% capital gains) and Abu Dhabi (0% income tax) lead in tax efficiency.
Q: How does infrastructure impact crypto adoption?
A: Fast internet (e.g., Abu Dhabi's 398Mbps) enables seamless trading and blockchain development.
Q: Is Singapore's crypto market saturated?
A: With 55.9% penetration, Singapore remains a growth market — particularly in institutional adoption.
👉 Compare crypto hubs' regulations
Data Sources: Multipolitan Index 2025, Statista, Triple.A
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