Top 10 Countries For Blockchain & Crypto Startups

Blockchain 11 Jun 2020
Dr. Sanjeev Raman

Blockchain is the latest revolution in the digital market. It has spurred the new era of transformation. This has brought many nations working aggressively towards integrating this emerging technology with mainstream business operations. Although the entire world is well-aware about blockchain and its positive side, only some nations have shown a positive inclination towards accepting blockchain and making it a part of their day-to-day business. We know that blockchain finds usage in supply chain management, data security, transparency and much more. This article will look at the top 10 nations that support blockchain innovation.

1.  Malta

Malta is a "blockchain island." This country is considered as one of the most blockchain-oriented regions and the leading center for blockchain and cryptocurrency. The Parliament of Malta approved the legal framework for blockchain technology last summer. This decision made the small island in the Mediterranean Sea one of the most blockchain friendly countries in the world. As of April 2019, the Maltese Financial Services Authority (MFSA) has approved 14 blockchain companies that applied for Virtual Financial Asset (VFA) agent status in November 2018. In May 2019, Malta’s leading blockchain advocate and the Parliamentary Secretary for Financial Services, Silvio Schembri, announced the first blockchain-based government authority. 

 2.  Estonia

This developing nation is leaving no stone un-turned to explore different avenues of blockchain technology. The country has created many acts and regulations that would allow the blockchain stalwarts to turn to Estonia to make the investment and start venturing into blockchain. They have also come up with e-residency which attracts the blockchain start-ups.

Estonia was the first country to establish a blockchain-based e-residency program. The government is also considering to implement blockchain in healthcare, financial services, and e-governance as well. Estonia also hosts a number of Bitcoin-based ATMs. Estonia has declared as an advanced country in the blockchain technology area. It is a perfect example that explains how developing countries could largely benefit from the advantages provided by the new technology.

3.  Switzerland

The nation has created Zug, which is a crypto valley. The tiny Swiss town (pop. 29,000) has taken on outsize importance given its status as both a tax haven and home to the Ethereum Foundation, and more than 450 blockchain-related startups and organizations. Switzerland offers generous regulatory and tax treatment for blockchain startups. The city of Zug has excellent domestic and global business networks, efficient bureaucracy, and low corruption. In addition, Swiss citizens have a high level of knowledge of blockchain. The Swiss parliament also proposed Bitcoin as a foreign currency. This has increased the activities related to cryptocurrency in the country. Blockchain in Switzerland is expected to be introduced into financial service, insurance, logistics, energy, and healthcare in the near future. The blockchain friendly regulations have also attracted investors.

Different publications reported that Facebook considered plans of launching its own stablecoin, dubbed as Libra. Later, the media revealed, that in Geneva, the social media giant registered a new subsidiary, named as Libra Networks, which focuses on the stablecoin’s launch. 

4.  United Arab Emirates (UAE)

When it comes to blockchain adoption, the UAE is one of the friendliest nations. They have started using their own cryptocurrencies since 2016, and is now becoming a global hub for cryptocurrencies. The nation is also planning to become the first country in the world to have government powered by blockchain. It is because of this reason that many startups and investors are eyeing UAE as a favorable ecosystem to start their blockchain venture.

Dubai has grand blockchain ambitions, having stated its commitment to being the world’s first blockchain-powered city by 2020. It currently has 20 blockchain projects under way in identity, visa processing, land registry, and health care records,

5.  United Kingdom

UK has the second most number of blockchain startups in the industry. The local authorities have planned to improve its regulation against identity theft and slow financial services with the proper implementation of the blockchain technology.

In August 2016, the government launched Blockchain-as-a-service (BaaS) as a part of "Innovate UK." This is used for paying welfare checks and student loans. Also, the department for work and pensions in the UK allows the pensioners to claim payments through blockchain-enabled mobile apps.

The ICO investments in the UK increased from 50M USD in 2016 to 150M by 2018, which is a 300% growth according to the report by the Big Innovation Centre. The report states that over £500 million investments were made into British based blockchain startups in 2017-2018.

One unintended upside of Brexit may be that it encouraged the U.K. government to throw more support behind London’s blockchain ecosystem to offset lost opportunities in the traditional financial services industry. The U.K.’s cryptocurrency task force aims to regulate and encourage growth, and should serve as a stabilizing factor in a city that’s already home to the world’s second-highest number of blockchain startups.

6.  The United States 

The United States is nowhere lagging when it comes to adopting blockchain technology. From establishing research institutes to Bitcoin ATMs, United States has made every attempt to promote and implement this technology and make it a part of their mainstream functioning. States like Montana and Texas are considered to be the friendliest ones when it comes to blockchain startups.

The United States holds over 40% of the total blockchain startup market. It is a major player in the blockchain and cryptocurrency ecosystem. As per the latest report, the US Federal Government intends to increase spending 10x on the blockchain. As a result, the amount of spending in this direction will increase by the end of 2021 to 123.5 million dollars, while in 2017 funds were allocated only in the amount of 10.7 million dollars.

Many US-based financial companies, including Goldman Sachs and JP Morgan Chase, are investing in blockchain technology to create a more efficient network to process financial transactions. In April 2019,  Investment banking giant JP Morgan Chase revealed that 200 banks have joined its permissioned variant of the Ethereum blockchain, the Interbank Information Network (IIN). Goldman Sachs has hinted considering its own stablecoin launch.

7.  Sweden

In general, Sweden shows a vivid example of the real implementation of modern technologies in real life. The country has the potential to eliminate cash very soon, with the help of its own digital Swedish currency, e-krona. The local authorities are working on the introduction of blockchain into the scope of the real estate registry. The government is testing a model in which land ownership contracts are located inside the blockchain network. This means that data on new contracts, transactions and owners are stored in the entire network for all users at once. This reduces the risk of counterfeiting and hacking, and therefore illegal interception of property. The growing demand for blockchain has reflected an increase in such startups. Sweden is also home to numerous startups including bitcoin exchanges and crypto companies.  

8.  Singapore

The country is home to several startups in blockchain. In fact, it has neck-to-neck competition with Japan and China when it comes to blockchain applications and service development. The nation has created rules and regulations that would favor blockchain and its development and is thus, one of the most sought after locations when it comes to blockchain startups.

Singapore’s ambitious Smart Nation strategy seeks to transform this former fishing village into a living laboratory of innovation, and that type of proactive thinking is one reason it’s this year’s world leader in blockchain. Though other cities may be better known for their blockchain scenes, Singapore boasts the leading score in our smart city category, and strong numbers in both the number of ICOs and blockchain-related startups. Its government is considered more transparent and business-friendly than others, and it boasts blockchain-friendly regulations to boot. It’s home to several new blockchain co-working and incubation spaces. Its GovTech office is exploring a handful of blockchain use cases, while the Monetary Authority of Singapore has pioneered a decentralized inter-bank payment and settlements solution.

9. China  

If we are talking about cryptocurrency and blockchain, we cannot miss China. The nation, although announced a ban on cryptocurrency and crypt mining, hasn’t deterred from venturing into blockchain based service development. From its legal system to education, China has taken some remarkable moves to promote blockchain based technologies. The country actively favors its own smart contract platforms like VeChain, NEO, Qtum, and TRON.

10. Canada

Toronto is the banking capital of Canada, and it’s also a global thought leader in blockchain technology. It’s home to the Blockchain Research Institute, a think tank with researchers based in Zurich, Sao Paolo, and Mumbai, as well as Blockchain Canada, a nonprofit connecting the Canadian blockchain ecosystem. While Toronto does not dominate the list of countries with the highest number of ICOs issued, it’s Vitalik Buterin and Ethereum’s hometown, so it’s central to the global blockchain community. Then there’s the AI angle. This convergence of blockchain and AI makes Toronto fertile ground for many of the new digital economies of the future.

Conclusion

The blockchain market is highly dynamic, and so are the developments around it. Many countries are now favoring the use blockchain technology. So, obviously the list does not end here. There are other countries like Australia, Brazil, Denmark, Gibraltar, France, Korea, Denmark, South Africa embracing blockchain rapidly. Blockchain is expected to develop and expand in the upcoming decades.

The blockchain enthusiasts believe, that this expansion will be entirely different from the internet boom. Certain countries are adopting their legislation to the new technology, while others remain negative towards cryptocurrency. However, both are encouraging blockchain growth as they see its huge potential.