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The Global Leader in
Residence and Citizenship by Investment

The Crypto Wealth Report

Henley & Partners’ inaugural publication for those following crypto assets and private wealth, and investment migration trends — whether global citizens, crypto investors, wealth managers, or private bankers. The report includes exclusive statistics on crypto and Bitcoin millionaires, centi-millionaires, and billionaires provided by global wealth intelligence firm New World Wealth, as well as insights from leading academics, industry experts, and crypto players. It also features Henley & Partners’ Crypto Adoption Index, which compares the best investment migration programs for crypto investors. Read the methodology here.

Digital world map and trading graph

Our Methodology

The Crypto Wealth Report is published by Henley & Partners, the global leader in residence and citizenship by investment, in partnership with global wealth intelligence firm New World Wealth.

New World Wealth is currently the only known independent wealth research firm systematically tracking global wealth migration trends between countries and cities. The firm was established in 2013 and has been tracking the movements and spending habits of the world’s wealthiest people for almost a decade.

New World Wealth has an impressive track record in providing robust, reliable wealth data and insights for key publications, such as Knight Frank’s Wealth Report, AfrAsia Bank’s Global Wealth Migration Review, and Henley & Partners’ Africa Wealth Report, The Centi-Millionaire Report, and USA Wealth Report, as well as the Henley Private Wealth Migration Dashboard. The firm’s reports and findings have been referenced by the Australian and UK governments, as well as by global news outlets such as the BBC, Bloomberg, CNN, the Financial Times, Forbes, the New York Times, and Robb Report.

New World Wealth tracks the movements and spending habits of over 150,000 high-net-worth individuals in its in-house database, with a special focus on individuals with over USD 10 million in investable assets. The database is focused on company founders and affluent individuals from high value companies with the following work titles: chairperson, CEO, president, director, and managing partner. This data is used as a base in all New World Wealth’s wealth and crypto modeling.

Note: It should be noted that New World Wealth never discloses the names of the individuals in its database, which it uses purely for in-house statistical studies.

New World Wealth also considered the following sources as sanity checks for its data:

  • Public information on large crypto holdings from major platforms such as Binance, CoinMarketCap, BscScan and Etherscan.
  • In-house wealth tier models, which benchmark billionaires, centi-millionaires, and other high-net-worth individuals using a progressive Lorenz curve distribution.

Wealth versus GDP

We consider wealth to be a far better measure of the financial health of an economy than GDP. The reasons for this include:

  • In many developing countries, a large portion of GDP flows to the government and therefore has little impact on private wealth creation.
  • GDP counts items multiple times. For instance, if someone is paid USD 100 for a product/service and they then pay someone else that same USD 100 for another product/service, that adds USD 200 to a country’s GDP, despite the fact that only USD 100 was produced at the start.
  • GDP ignores the efficiency of a country’s local banking sector and the local stock market in retaining wealth in a country.
  • GDP largely ignores the impact of property and stock market moves, yet these two factors clearly have a significant impact on wealth.
  • GDP is a relatively static measure that tends to move only slightly year on year. It also has a time lag.
  • Wealth figures, on the other hand, have none of these limitations, making them a far more accurate gauge of the financial health of an economy than its GDP figures.

For more information on New World Wealth, please visit newworldwealth.com

Crypto Adoption Index

Including over 750 data points within six main parameters comprising 19 sub-parameters and 29 indicators, Henley & Partners’ Crypto Adoption Index is designed to assess and rank crypto-friendly investment migration host countries based on their level of adoption and integration of cryptocurrencies and blockchain technology. 

The index takes into consideration various factors that contribute to a country’s crypto ecosystem, providing a comprehensive overview of the extent to which they are embracing this emerging technology.

The list of 26 countries was carefully selected based on an assessment of the regulatory, technological, economic and social elements necessary for the development of the blockchain ecosystem. Each has made significant progress in creating a supportive crypto environment, and all are recognized for some level of crypto-friendliness.

Key parameters

The six key parameters are public adoption, infrastructure adoption, innovation and technology, regulatory environment, economic factors, and tax-friendliniess.

Public adoption

Public adoption measures the level of awareness, interest, and engagement with cryptocurrencies in the general population. It includes indicators such as the percentage of crypto users relative to the total population, Google search interest related to cryptocurrencies, and the number of institutions offering courses on blockchain and cryptocurrency. Higher public adoption indicates a more crypto-friendly environment.

Infrastructure adoption

Infrastructure adoption assesses the technological foundations for crypto transactions and exchanges. This parameter includes the number of crypto ATMs, integration with local banks, the presence of digital asset exchanges, and the approximate number of products that can be purchased with Bitcoin. A well-developed infrastructure supports smoother crypto adoption.

Innovation and technology

The level of innovation and technology is a gauge of a country’s commitment to fostering advancement in the crypto space. This parameter considers government-backed initiatives, the number of research institutions dedicated to blockchain and cryptocurrency, and the number of cryptocurrency-related startups. A dynamic innovation landscape can drive crypto adoption forward.

Regulatory environment

The regulatory environment parameter evaluates a country’s legal framework for cryptocurrencies and blockchain technology. Sub-parameters here include the adoption of Initial Coin Offerings (ICOs) and the number of ICOs operated, anti-money laundering/combating the financing of terrorism (AML/CFT) regulations, the legal status of cryptocurrency, clarity of regulations, the development status of central-bank-backed digital currencies, and licensing requirements for  crypto businesses. A supportive regulatory environment encourages growth.

Economic factors

The economic factors parameter considers the stability and economic conditions of a country. Sub-parameters include the standard deviation of historical GDP growth, the unemployment rate, and the exchange rate. It also evaluates the degrees of financial inclusion, smartphone penetration, and internet penetration. Economic stability and technological accessibility contribute to a conducive environment for crypto adoption.

Tax-friendliness

The tax-friendliness parameter examines a country’s approach to taxing cryptocurrency-related activities. It includes aspects such as tax rates on crypto income and capital gains. Countries with the lowest taxation on crypto transactions and clear cryptocurrency tax policies are scored with the maximum value.

Please refer to the data sources section below for links. 

Gathering and computing the data

The dataset for 26 countries was collected between August and September 2023 from publicly available open databases for the most recent year available.

Numerical variables were then normalized. For each indicator, the minimum value was transformed into a 0, the maximum value into a 1, and every other value into a decimal between 0 and 1:

x = (x – Min(x))/(Max(x) – Min(x))

Categorical variables are divided into distinct categories based on relevant criteria. Each category is assigned a numerical value to represent its level in a range from 0 to 1. The numerical values are assigned according to the relative importance of each category.

Next, the indicators were grouped into sub-parameters according to theme. Each sub-parameter includes from one to three indicators. The scores for sub-parameters were calculated by summing up the equally weighted values of their indicators. 

The scores for the six key parameters were calculated by summing up the values of their sub-parameters, with each given equal weighting. The scores were multiplied by 10 so that the maximum value for each parameter is 10.

Sub-parameter = ∑ equally weighted individual indicators

Parameter = (∑ equally weighted sub-parameters) x 10

The total country score is calculated by summing the scores for the six key parameters, with a maximum possible value of 60:

Total country score (out of 60) = public adoption + infrastructure adoption + innovation and technology + regulatory environment + economic factors + tax-friendliness

Data sources

Read more

Disclaimer: The wealth data available in The Crypto Wealth Report is licensed by New World Wealth, and the Crypto Adoption Index data is licensed by Qualia Consulting Agency. Henley & Partners Group Holdings Ltd is not responsible for its correctness. The data posted in The Crypto Wealth Report is freely accessible for private non-commercial use only.

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