Number of Crypto Millionaires Doubled to 172,300 Over the Last Year, Study Finds

The number of crypto millionaires has doubled in the last year, as key regulatory approvals and a new Bitcoin high led to a rapid increase in crypto adoption and a new “crypto elite,” according to a report by wealth and migration consultancy Henley & Partners.

Crypto adoption increased 31% in the 12 months ending in June, to a total of 560 million users globally, while the total market value of crypto holdings nearly doubled to US$2.3 trillion as of June 30. Bitcoin, which peaked in March at US$73,000, comprised about half of both users and value, with 275 million investors and a US$1.2 trillion total market value, up 103% from the previous year, the report said.

The surge in both price and adoption of cryptocurrencies has minted a new crop of millionaires.

In fact, the number of crypto millionaires just about doubled to 172,300 in the last 12 months, and the number of Bitcoin millionaires more than doubled to 85,400—or roughly half of the overall total.

There are also now 325 crypto centi-millionaires—individuals with crypto holdings of at least US$100 million—up from 181 last year, with Bitcoin investors, once again, comprising about half of the total.

Crypto currencies have also minted 28 billionaires, a list that includes the Winklevoss twins—Brett and Cameron Winklevoss;SecondMarket founder Barry Silbert ; MicroStrategy co-founder Michael Saylor ; and Binance founder Changpeng Zhao , who is currently serving a four-month prison sentence after being found guilty of money laundering by a California court earlier this year, according to MarketWatch.

The increase has largely been driven by regulatory shifts that have allowed for the normalisation of cryptocurrencies, despite the high-profile implosion of key crypto players like FTX and Genesis Global Capital in 2022 and 2023. In particular, the U.S.’s’ approval of spot crypto exchange-traded funds in January (following its approval of crypto futures ETFs) signalled a new era of institutionalisation.

“The long-awaited approval of spot Bitcoin and Ethereum ETFs in the USA unleashed a torrent of institutional capital,” Dominic Volek of Henley & Partners said in the report.

The U.S. ranked fourth in Henley & Partners’ analysis of global crypto hubs, which takes into account regulation, infrastructure adoption, technology prowess, and tax-friendliness, among other factors. Singapore leads the list due to its recent implementation of a regulatory framework for crypto assets, as well as its strength in infrastructure, technology, and economic indicators. Hong Kong, which also approved spot crypto ETFs in January, came second, followed by the United Arab Emirates, which scored highest on tax-friendliness.

Competition between global economic hubs is crucial, because the rise of the crypto elite is driving wealth migration patterns, Henley & Partners said.

“As we move forward, the intersection of cryptocurrency and investment migration will undoubtedly play a major role in shaping the future of global wealth and mobility,” Volek said.

Making sure you claim everything you’re legitimately eligible for can have a big impact on your annual discretionary income. But do you know what you can claim?

What is tax deductible?

When completing your tax return, bear in mind that there are a number of tax deductions you can claim against expenses related to your work. What each person can claim will vary depending on their occupation. To make a deduction for a work-related expense, you need to have spent the money yourself without being reimbursed by work, and the cost needs to directly relate to earning your income. You’re also going to need a record to prove the expense, usually a receipt.

While travel expenses, home office expenses, education and mobile phone expenses are commonly claimed, there are a number of deductions often overlooked that you may be able to claim when completing your tax return.

Artwork

Regardless of why you bought your latest artwork, the Australian Taxation Office views artwork as both an investment and a depreciating asset, meaning you can claim it as a tax deduction. How much you can claim will be determined by the size of your business and whether you are an employee.

If you work from home, you can claim a deduction for your artwork up to the value of $300 as part of your home office expenditure. Small and medium sized business owners can make a much higher claim for artwork.

An apartment in another city

Investment properties purchased away from your home that you stay in when travelling for work can be claimed.

Under ATO guidelines, if you’re required to work away from home and you choose to rent or buy an apartment in the other work location rather than relying on hotel accommodation, you can claim a deduction for the work-related costs that apply to the apartment. This includes rent or interest on the mortgage.

Work handbag

Each year, you are allowed to claim a bag that you use for work. This could be a laptop bag or backpack used for carrying work-related items, but claiming a designer luxury handbag, may raise a few eyebrows at the ATO. If you carry your laptop, tablet and paperwork in a bag for work, then claim it. If you’re using it for gym equipment or your lunch, don’t.

COVID tests

The ATO will let you claim the cost of a COVID test if it was used to see whether you are sick and therefore unable to attend work. This is particularly the case if you’re in a customer-facing role and you need to purchase the test to stop the spread of the disease.

Man’s best friend

In some limited circumstances, you may be able to claim a deduction for the cost of buying and caring for a dog if they assist in your occupation. The two most common scenarios for this claim are farming and security reasons.

A caravan

The ATO allows for travel expense claims and there have been instances where taxpayers have claimed a caravan — and it was accepted. If you travel extensively for work and a caravan is saving you from paying for a hotel room, you may be able to apportion the deduction if it is used for work, rather than private use.

Meals away from home

If you’re travelling for work, you can claim the cost of meals when you travel and stay away from home overnight. You may also be able to claim a deduction for the cost of a meal you buy and consume when working overtime.

Media subscriptions

Many media publications are now subscription-based and can be deductible if they relate to your profession. This includes subscriptions to newspapers, professional magazines and podcasts that are linked to your profession.

Desk lamps and stationery

You don’t have to be running a business from home to make work-related claims. If you have a dedicated workspace at home where you’re doing a few hours of work at home a week, you can claim a number of related items, including lamps, stationery, a shredder and printer cartridges.

Protective clothing

If it’s related to your work, you can claim
the cost of buying items like fire resistant clothing, steel-capped boots, hi-vis vests or sun protection. This can apply to people working directly on site, like construction workers, but also related industries, such as engineers and architects who visit.

Depending on your industry, you can claim items that relate to your work, including a bullet proof vest if you’re a police officer or anything used that relates to your performance if you’re a professional athlete. Media professionals can also claim sunglasses if they are required to be out in the sun in the course of their work.

While you’re at it, you may also be able to claim the costs to clean occupation-specific clothing, so ask your tax accountant.

Tax accountancy fees

Last but not least, the fees you pay for the preparation of your annual tax return if you used a tax agent to prepare and lodge your tax return can be claimed on this year’s tax return.

The ATO has a number of online tools and calculators to help you calculate your deduction correctly, including work from home, self-education and car expenses.

Visit the ATO website and type ‘calculators’ into the search bar.