Q1 2022 appears to have favored Germany, as a recent Coincub report scored the country AA rating to overtake Singapore as the most crypto-friendly country in the world.
As of the last quarter of 2021, Singapore was the leader among the crypto-friendly countries. At this same time, per the last Coincub report, Germany was in the 4th position.
However, things have taken a dramatic change in Q1 2022. Germany has risen from the fourth position to sit in the position previously occupied by Singapore.
Why Germany emerged?
The report, however, did not just rank Germany over Singapore. It considered so many factors before crowning it first (most crypto-friendly country) among over 40 countries featured in the report.
One such factor is that the country takes a positive stance on crypto trading and investment. Another factor is that Germany has the highest number of Bitcoin nodes.
“Germany takes a positive stance on cryptocurrency trading and investment. It moved up 3 places from 2021 to take the top spot. Germany is already one of the world’s most crypto-friendly countries.”
It continued that “The country also has the highest number of Bitcoin nodes besides the US, but with a smaller population and GDP demonstrating an even greater commitment to crypto.”
Apart from that, there were reports of positive developments related to crypto in the country. One such is Deutsche Boerse’s listing of over 20 cryptos ETPs, and Sparkasse savings banks plan to begin offering wallets for crypto trading.
Why Singapore slipped?
Unarguably, Singapore was a leader. It held the record for the most crypto-friendly country throughout the last quarter of 2021. But, Germany has overtaken it now. It is necessary to examine why it fell from this position in Q1 2022.
The Coincub report attributed the fall of Singapore to the recent action of the Monetary Authority of Singapore against VASPs. This action is the MAS issued guidelines restricting VASPs from promoting ads outside their website. It also restricted the use of Bitcoin ATMs.
Although Germany is now at the top, it is not certain if the country will maintain the spot forever. However, it could continue to sit in the first position with more progressive developments.