The top ten encryption capitals of 2025 have been announced, with the first place being undisputed?

The most popular encryption hot spot among Web3 nomads.

Written by: Wenser (@wenser 2010)

As May arrives, the Token 2049 event held in the desert city of Dubai has just concluded, and the Middle East is becoming the latest hotbed of encryption following countries and regions like Singapore, Hong Kong, South Korea, Japan, the United States, and Turkey. Currently, the U.S. Bitcoin Strategic Reserve Bill and Stablecoin Regulation Bill are still progressing steadily. Against the backdrop of the accelerating mainstreaming of cryptocurrencies, Odaily Planet Daily will present in this article the “Top Ten Encryption Capitals Ranking” based on dimensions such as encryption friendliness, the scale of the encryption population, and the scale of encryption assets. The following rankings are not for professional reference and are provided for readers’ reference only.

Top Ten Encryption Capitals: Some are timely, while others are poised for takeoff.

1. Singapore

As a bastion of cryptocurrency innovation in Asia, Singapore’s support for cryptocurrencies has been evident in the past 3-5 years.

Compared to other countries and regions, the advantages here mainly include open regulation, clear policies, and internationalized communities, with a digital asset ownership rate of 23%. Singapore’s financial infrastructure and talent attraction make it the preferred destination for Web3 entrepreneurs and capital.

2. Dubai

In recent years, countries in the Middle East have become one of the sovereign state-level participants in the encryption market. A previous example is the UAE’s MGX investing $2 billion in Binance, which is referred to as the “largest financing in cryptocurrency.”

As a hub for Middle Eastern capital and policy dividends, the local government of Dubai undoubtedly has an open and inclusive attitude towards cryptocurrencies and other digital assets. Innovative regulatory measures such as VARA have also facilitated the migration of global high-net-worth users and enterprises. Many exchanges have their headquarters and key team members residing here.

In addition, Dubai’s tax policies are relatively friendly, and offline organizational activities are frequent, which is favored by people within the encryption industry. After gold and oil, sovereign countries in the Middle East, centered around Dubai, may be expected to join the ranks of the “Bitcoin hoarding army.”

3. Hong Kong

After 2023, influenced by regional competition from Singapore and the severe impact on the traditional financial industry, the Hong Kong government has accelerated its embrace of the encryption industry. The implementation of the VASP licensing system and the upcoming stabilization of the regulatory framework for stablecoins fully demonstrate the Hong Kong government’s determination to develop.

In addition, as one of the important bridges connecting the East and West, Hong Kong has a natural advantage in connecting capital institutions, encryption exchanges, and various project parties in mainland China and throughout Asia and even the world, and has always been regarded as an important encryption window.

Based on its past status as an international financial center, Hong Kong’s local Web3 funds, incubators, hackathons, and other activities are also extremely abundant, and it is expected to continue to play a leading role in the region in the future.

According to the report “2025 Cryptocurrency Wealth Concentration Index” released by Multipolitan, the concentration of cryptocurrency wealth in Hong Kong ranks third, with an average cryptocurrency asset holding of up to $97,000, indirectly confirming the leapfrog development of cryptocurrency mainstreaming in Hong Kong.

4. Seoul

According to a report by Finance Magnates in December 2024, the cryptocurrency adoption rate in South Korea has reached 30%, with the number of cryptocurrency investors totaling 15.6 million, nearly matching the number of domestic stock investors in South Korea. The total market value of cryptocurrencies held by South Korean investors has reached 102.6 trillion won (approximately 70.8 billion USD at that time, now equivalent to 73.497 billion USD).

In addition, the NFT, GameFi, and other innovative sectors related to South Korea are very active, with trading volumes from South Korean cryptocurrency exchanges such as Upbit, Bithumb, Coinone, Korbit, and GOPAX holding a certain share in the crypto market. As the capital of South Korea, Seoul is home to a large number of blockchain startups and investment institutions, and there are many cryptocurrency-related communities, creating a vibrant atmosphere for industry development.

According to the report “2025 Cryptocurrency Wealth Concentration Index” released by Multipolitan, South Korea ranks 4th in cryptocurrency wealth concentration, with an average cryptocurrency asset holding of approximately $94,000.

5. Miami

As a model city for local policy innovation in the United States, Miami can be regarded as a previous “encryption hot spot.”

With the active promotion of Mayor Francis Suarez, large events such as Bitcoin Miami have successfully taken place, helping the city become one of the centers of encryption innovation in the United States. Previously, well-known investment institutions like a16z had set up teams and offices here, and many cryptocurrency projects followed suit.

Despite the turbulent state of cryptocurrency regulation in the U.S. with Trump’s rise to power, the crypto-friendly atmosphere displayed by Miami still makes this place stand out.

6. Chuge (Switzerland)

Known as the “encryption valley.” This is the birthplace of projects such as the Ethereum Foundation.

Compared to cities in other parts of Europe, Switzerland has a sound legal system, relatively reasonable tax policies, and a friendly regulatory environment for the encryption industry, with a high concentration of capital and talent. Previous reports have indicated that the Greater Zurich Area (including Zug) is home to nearly 900 blockchain and encryption companies, making it one of the world’s leading cryptocurrency centers.

According to the report “2025 Cryptocurrency Wealth Concentration Index” released by Multipolitan, Switzerland ranks 13th in cryptocurrency wealth concentration, with an average cryptocurrency asset holding of approximately $42,700.

7. Tokyo

As one of the earliest encryption hub cities, Tokyo can be regarded as the “Crypto OG City”; previously, exchanges like Mt.Gox originated in Japan.

With the rapid development of the cryptocurrency industry, the Japanese government has made targeted adjustments accordingly, and its encryption regulatory system is becoming increasingly mature with a clear compliance environment. Previously, the Deputy Minister of the Ministry of Economy, Trade and Industry, Itagaki, and Natsu stated at the Web3 industry conference “WebX”: “The Kishida government has prioritized support for entrepreneurial policies in the Web3 field as a key issue. I believe that the Japanese government is not only indispensable for web3, but that everyone’s goals are the same.”

In addition, the enthusiasm of Japanese companies to participate in the encryption currency industry is increasing. World-class Japanese enterprises such as Sony and Toyota have joined; following them, Japanese listed companies like Metaplanet are emulating Strategy by purchasing Bitcoin as asset reserves, driving up the company’s stock price.

8. San Francisco

As the hub of technology venture capital in the United States, San Francisco is also one of the cryptocurrency capitals of the country.

In addition to established tech companies like Apple and Meta, this place also gathers a series of well-known industry encryption exchanges, cryptocurrency projects, and investment institutions such as Coinbase, Kraken, BitGo, Ripple, FalconX, Blockchain Capital, and Polychain Capital.

9. Shenzhen

As a hub for numerous encryption projects, Shenzhen can be regarded as the “first city of the trading circle.” Here, a single office building may simultaneously host various industry professionals, including token farming studios, cryptocurrency project teams, and employees of encryption exchanges, among others.

In addition, Shenzhen’s advanced electronic industrial technology and internet industry talent have made significant contributions to the development of the encryption currency industry in areas such as DePIN, Meme coins, and L2 networks. The convenient connections with Hong Kong also provide the corresponding conditions for Shenzhen to “get the first opportunity by being close to the water.”

Industry insiders once claimed: “In Shenzhen, if a brick is thrown down, it could hit 3 project teams.” Now, with the growing participation of cryptocurrency in Asia, Shenzhen is undoubtedly the “crypto capital” of the country.

10. Slovenia

As one of the small countries in Europe, Slovenia has a high enthusiasm for encryption throughout the nation.

According to CryptoGambling.tv data analysis, Slovenia is the most cryptocurrency-obsessed country in Europe in terms of search volume as a percentage of the population. Luxembourg and the Netherlands are in second and third place, respectively. Specifically, Slovenia has about 100,000 cryptocurrency-related searches per month, with an average of 4,789 searches per 100,000 people, the highest percentage of any European country.

Previously, Slovenia was highly favored due to its tax-free policy on encryption, but this situation has changed recently: According to reports, the Slovenian Ministry of Finance has proposed a 25% tax rate on capital gains from encryption starting in 2026, applicable to transactions that convert encryption assets into fiat currency or are used for consumption, but not including exchanges between encryption assets. The Ministry of Finance stated that this move aims to close the loopholes in the current tax system and unify the taxation of encryption gains with traditional investment gains such as stocks and bonds.

Previous earnings (before January 1, 2026) are not subject to taxation, and trading losses can be carried forward to offset future earnings. The new tax system is expected to generate annual revenue of 2.5 million to 25 million euros for the country, and the Ministry of Finance is currently seeking public opinion. According to data from the European Central Bank, Slovenia has the highest cryptocurrency holding rate in the Eurozone, with about 15% of adults holding cryptocurrency in 2023.