If you’re launching a crypto startup, picking the right location isn’t about chasing headlines. A country making noise about Bitcoin today might change its stance tomorrow. What matters is a jurisdiction that truly understands Web3, protects businesses from regulatory whiplash, and allows you to focus on building rather than battling compliance nightmares.

The allure of emerging crypto-friendly countries might be tempting but it’s smarter to stick with those that have already proven themselves. You need to think long-term: consider licensing requirements, costs, tax implications, and how regulators will treat your business when things go wrong.

Let’s take a look at five jurisdictions that have earned their place in the crypto world and provide the stability and structure startups should consider.

Singapore

Singapore has cemented its place as one of Asia’s most progressive and crypto-friendly jurisdictions. With its strong focus on innovation and regulatory transparency, the country is a hotspot for blockchain and cryptocurrency businesses.

The Monetary Authority of Singapore (MAS) has created a clear legal structure, offering businesses the opportunity to thrive in a safe and forward-thinking environment. It’s ideal for companies looking to scale in a region known for its strong tech ecosystem.

Licensing & Requirements

Under the Payment Services Act (PSA), businesses must obtain a license from the Monetary Authority of Singapore (MAS). The application process involves preparation (approximately 4-6 weeks) and review (around 4 months), with timelines varying based on application complexity.

Costs

Application Fees

- - Money-Changing License: S$500
  - Standard Payment Institution License: S$1,000
  - Major Payment Institution License: S$1,500

Annual Fees

- Money-Changing License: S$1,500
- Standard Payment Institution License: S$5,000
- Major Payment Institution License: S$10,000

Additional fees apply based on specific payment services offered.

Crypto Countries #1

What to Watch Out For

Ensure readiness to meet MAS’s regulatory standards, including AML and technology risk management requirements.
Be prepared for a comprehensive application process, with timelines varying based on application complexity.

Switzerland

Switzerland has long been a global financial hub, and its crypto regulations continue to stand out for their clarity and stability. The country is home to Crypto Valley in Zug, a region known for attracting blockchain and crypto startups with its well-defined legal framework and tax advantages. Switzerland offers a well-regulated environment with a focus on security and compliance, making it ideal for businesses seeking long-term sustainability.

While Switzerland is not part of the EU, it is deeply integrated into the European Economic Area (EEA). For Switzerland-based crypto firms seeking to do business outside the country, compliance with the EU’s MiCA regulations may be required.

Licensing & Requirements

Obtaining a Fintech License from the Swiss Financial Market Supervisory Authority (FINMA) typically takes approximately 6 months, depending on the application’s complexity and completeness. The process includes preliminary checks, application preparation, responding to FINMA’s queries, and operational implementation.

Costs

Application Fees: FINMA’s fees vary based on the project’s complexity. The average fee invoiced for the licensing procedure is approximately CHF 5,891.
Initial Capital Requirements: A minimum initial capital of CHF 300,000 is required, increasing with the volume of public deposits received.

What to Watch Out For

Ensure compliance with anti-money laundering (AML) regulations and maintain adequate capital reserves.
Prepare for a thorough application process that may extend up to 18 months, depending on various factors.
Additionally, be aware that future legal updates may require Swiss-based crypto firms to meet higher standards, including MiCA compliance for cross-border activities.

Germany

Germany stands out in Europe as one of the most regulated countries for crypto businesses. Known for its strong legal framework and precise regulations, the country provides a stable environment for crypto entrepreneurs.

While it is one of the stricter jurisdictions in terms of licensing and compliance, its clear tax laws and transparent regulations make it an ideal place for businesses that need a well-defined and secure legal environment to operate in.

Licensing & Requirements

Crypto businesses in Germany must obtain a license from the Federal Financial Supervisory Authority (BaFin). The licensing process can take up to 6 months, with BaFin’s thorough review focusing on AML and counter-terrorist financing laws.

By the end of 2025, Germany will have fully implemented the EU’s MiCA regulation. As a result, any crypto firm wanting to set up in Germany will need to ensure full compliance with MiCA’s requirements, including the necessary licensing and operational standards. This means businesses will need to start working towards a MiCA license in addition to BaFin’s approval.

Costs

Application Fees: Variable, typically ranging from €10,000 to €50,000.
Corporate Tax: Crypto transactions are treated as assets and subject to 15% corporate income tax. However, capital gains from cryptocurrencies held for more than a year are tax-free.

What to Watch Out For

Prepare for a detailed application process with stringent compliance requirements.

United Arab Emirates

The UAE, particularly Dubai, has become a hub for crypto startups looking for tax advantages and ease of doing business. With no corporate, income, or capital gains taxes, the country offers one of the most attractive tax environments for crypto businesses.

The UAE has also been investing heavily in blockchain technology, creating free zones dedicated to crypto businesses. It’s a prime location for entrepreneurs looking to maximize their growth potential without the heavy tax burdens seen in other jurisdictions.

Licensing & Requirements

Crypto businesses must obtain a Crypto Asset License from the relevant authority, such as the Dubai Financial Services Authority (DFSA). The process is efficient, often taking 1-2 months, provided all requirements are met.

Costs

License Fees: Typically range from $5,000 to $10,000, depending on the chosen free zone.
Taxes: The UAE offers a favorable tax environment with no corporate, personal income, or capital gains taxes.

What to Watch Out For

While the tax benefits are significant, consider operational costs and stay updated on evolving regulations.

Portugal

Portugal is fast becoming a favorite destination for crypto investors and entrepreneurs due to its favorable tax regime. The country’s light-touch approach to cryptocurrency regulation, combined with no capital gains tax on crypto held long-term, makes it an attractive choice for both individual investors and businesses.

With a growing crypto community and a progressive outlook, Portugal provides a solid base for businesses looking to reduce their tax burden while still complying with global standards.

Licensing & Requirements

As of 2025, Portugal does not require a specific national crypto license. However, Portugal-based crypto firms must comply with the EU’s MiCA regulation. MiCA, as a regulation, is directly applicable in all EU member states and covers the authorization and operation of crypto firms across the EU. Firms engaging in certain activities, such as issuing crypto-assets or providing crypto services, will need to obtain the necessary authorization under MiCA.

Additionally, businesses must adhere to general financial regulations, including AML and KYC standards, as well as any applicable consumer protection measures.

Costs

Licensing Fees: Not applicable.
Corporate Tax: Profits from crypto trading are taxed at 21%. Capital gains from cryptocurrencies held for more than a year are tax-free.

What to Watch Out For

Stay informed about evolving regulations to ensure ongoing compliance.

The Bottom Line

When launching a crypto startup, prioritize long-term stability, clear regulations, and a tax system that aligns with your goals. Make your decision based on licensing, costs, and regulatory standards to set your business up for success.

Emerging jurisdictions may sound appealing, but choose wisely. Opt for a country with a proven foundation that supports sustainable growth. Stay ahead of the curve by consulting local experts to guide you toward a successful launch.