According to the inaugural Crypto Wealth Report by Henley & Partners, there are now 88,200 crypto millionaires worldwide, with almost half holding their fortunes in Bitcoin.
The number of crypto millionaires worldwide has surged to 88,200. Of these, almost half, or 40,500 individuals, hold their fortunes in Bitcoin. The report, which is the first of its kind, draws on exclusive statistics provided by global wealth intelligence firm New World Wealth, and includes insights from leading academics, industry experts, and major players in the crypto space.
The Inaugural Crypto Wealth Report
The inaugural Crypto Wealth Report provides a comprehensive look into the crypto economy, which now has a total market value of a staggering USD 1,180 billion. The report also delves into the 425 million individuals globally who own cryptocurrencies, offering rich perspectives on topics ranging from the number of crypto and Bitcoin millionaires, centi-millionaires, and billionaires, to investment migration strategies in the crypto sphere.
‘Plan B’ for Crypto Investors
According to Dr. Juerg Steffen, CEO of Henley & Partners, the uptick in crypto wealth has led to a significant spike in inquiries from crypto millionaires in the last six months. These high-net-worth individuals are exploring options to protect their interests in a rapidly shifting regulatory landscape. “We have seen a significant spike in enquiries from crypto millionaires who are all looking to build a viable ‘Plan B’ to protect themselves against any potential future bans on the trading or use of cryptocurrencies in their countries, and to allay the risks of aggressive fiscal policies that tax digital assets at source,” said Dr. Steffen.
High-Risk, High-Reward Asset Class
While the crypto market is full of opportunities, it is not without risks. Associate Professor Dr. Mete Tevetoğlu, a blockchain law specialist, warns in the report about the “severe legal consequences” of assuming that crypto assets are not governed by law. However, the report also highlights that the leadership of an increasing number of jurisdictions understands the legitimate nature of digital wealth, creating mechanisms for secure storage.
The Rise of Investment Migration
Henley & Partners’ new Crypto Adoption Index is designed to assess and rate crypto-friendly investment migration host countries based on six key parameters. The index considers factors such as public adoption, infrastructure adoption, innovation and technology, regulatory environment, economic factors, and tax-friendliness. The list of 26 countries was selected based on an assessment of the regulatory, technological, economic, and social elements necessary for the development of the blockchain ecosystem.
Singapore, the Crypto Hub
Singapore leads the pack with a score of 50.2 out of 60, or 83.76%, on Henley’s Crypto Adoption Index. Switzerland and the UAE follow closely behind. These nations stand out for their well-established crypto infrastructure and supportive regulatory environment. Dominic Volek, Group Head of Private Clients at Henley & Partners, emphasizes that cryptocurrencies are fast becoming a highly coveted asset class among wealthy individuals, especially in countries that offer residence and citizenship by investment programs.
Tax-Friendliness and Adoption
In terms of tax-friendliness, Singapore and the UAE scored a perfect 10 out of 10 on the Henley Crypto Adoption Index. However, when it comes to infrastructure adoption, the United States takes the lead, closely followed by Greece, Thailand, and Hong Kong.
Adnan Khan, a crypto specialist at Henley & Partners, encapsulates the sentiment expressed in the report, stating, “cryptocurrencies are the stars of the digital era and have leaped from the internet’s fringes to command center stage in today’s financial theater. These innovative blockchain-backed assets represent the pulse of a modern financial revolution.”