Between Jurisdictions: Top 5 Countries to Launch Your Crypto Startup

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, operating costs, tax implications, and how regulators respond when markets tighten, or new standards emerge.

In this article, we’ll break down what makes a country genuinely crypto-friendly, explore the top jurisdictions leading the crypto space, and help you decide which one best fits your startup’s goals.

Choosing the right jurisdiction for your crypto startup involves finding a place that allows digital assets while also supporting sustainable growth. A «crypto-friendly» country offers startups:

These factors determine whether you can build confidently or spend most of your time navigating uncertainty.

Here are the core elements that define a crypto-friendly jurisdiction:

A jurisdiction that excels across these factors doesn’t just help you start a crypto business, but also enables you to thrive.

Some jurisdictions stand out not because they make headlines, but because they consistently offer clarity, stability, and a strong foundation for long-term growth. These five countries are the top contenders for crypto founders evaluating where to launch:

Singapore is one of the most respected crypto hubs globally, thanks to its clear regulatory framework, strong talent pool, and ecosystem of accelerators, legal specialists, and venture capital firms. Its predictable approach to digital asset regulation and competitive tax regime make it a leading choice for Web3 businesses.

Crypto businesses are regulated by the Monetary Authority of Singapore (MAS). The core framework is the Payment Services Act (PSA), which introduced digital payment token (DPT) services and requires providers to be licensed as payment institutions.

In practice, most crypto service providers apply under one of two routes:

MAS expects real operational substance from licensed firms, including a Singapore entity, a physical office, and local leadership and compliance capability (e.g., director and AML officer).

The licensing process is documentation-heavy, with detailed scrutiny of your business model, AML/CFT controls, risk management, cybersecurity, and safeguarding measures.

Application fees:

For 2026, application fees range from S$500 — S$1,500 depending on licence type. Here’s a breakdown:

Corporate taxes: 17% flat rate, with incentives for tech and innovation sectors

Regulation is clear but strict. Expect extensive due diligence, strong AML/KYC controls, and ongoing reporting obligations. MAS frequently updates guidance, so staying compliant requires continuous monitoring.

Switzerland is known for regulatory stability and strong financial governance. Its Crypto Valley ecosystem in Zug offers legal expertise, accelerators, and early-stage funding which makes it a mature environment for crypto and blockchain startups.

Crypto firms typically require a FinTech License or authorization from the Swiss Financial Market Supervisory Authority (FINMA), depending on their activity. Requirements include AML compliance, operational risk management, and capital adequacy.

Licensing can be lengthy (up to 18 months), and requirements are detailed. Swiss firms expanding into the EU may also need to meet MiCA standards. You need to ensure compliance with anti-money laundering (AML) regulations and maintain adequate capital reserves.

Once licensed, firms also pay ongoing supervisory levies under a «user pays» model. This includes a fixed CHF 3,000 basic levy, plus an additional levy weighted 20% to balance sheet total and 80% to gross income.

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.

Germany operates under the EU-wide MiCA regime, meaning crypto-asset service providers need CASP authorisation rather than relying on the older KWG framework.

Crypto businesses in Germany must obtain a licence from the Federal Financial Supervisory Authority (BaFin) for CASP authorisation. The regulator’s review typically takes around 3–6 months once a complete application is filed.

Expect a heavy focus on AML and counter-terrorist financing requirements, IT security and controls, client asset safeguarding/segregation, and fit-and-proper checks for directors and key persons (including an AML officer and deputy).

A German legal entity and local presence are also expected, alongside minimum regulatory capital (around €125k—€350k depending on services) and a detailed 3-year business plan.

Germany is strict and documentation-heavy. Quality matters: incomplete or inconsistent submissions can trigger follow-up requests and delays, and licensed firms move into ongoing reporting, compliance updates, and inspection readiness after approval.

Also note that from 2026, all providers still operating under the KWG framework must have CASP authorization.

The UAE — particularly Dubai — has become a fast-growing crypto hub with business-friendly regulations, strong government support, and a growing Web3 community.

While the UAE is a popular crypto hub, it’s not a single-rulebook jurisdiction. Licensing, requirements, and timelines depend on the business zone where you set up (eg, Dubai mainland vs a free zone vs a financial centre like the Dubai International Financial Centre (DIFC) and what crypto activities you want to offer.

You can open a cryptocurrency license in the UAE in the following zones:

Crypto businesses must obtain a Crypto Asset License from the relevant authority, such as the Dubai Financial Services Authority (DFSA) or Virtual Assets Regulatory Authority (VARA). The process is efficient, often taking 4-6 months, provided all requirements are met.

The UAE isn’t a single-rulebook jurisdiction, so licensing requirements can change depending on the emirate and free zone you choose. The «fast» timelines only hold if your documentation is tight and your activity scope matches the licence category.

Banking can also be a gating factor, and ongoing obligations (reporting, audits, compliance reviews, and sizable $50 000 annual supervision fee can make the UAE more expensive to operate in than the headline tax benefits suggest.

Other considerations include demonstrating sufficient financial resources to cover six to twelve months of operating expenses, and meeting high standards for security and customer data protection.

Portugal is becoming a top choice for crypto founders thanks to its favourable tax regime, light-touch regulation, and long-term capital gains exemptions.

With a growing crypto community and progressive outlook, it offers a supportive base for businesses looking to reduce their tax burden while staying aligned with global standards.

Portugal has historically regulated crypto providers through VASP registration with Banco de Portugal, with a heavy focus on anti-money laundering and counter-terrorist financing compliance.

As MiCA rolls out across the EU in early-to-mid 2026, Portugal will shift toward a Crypto-Asset Service Provider (CASP) licence, which should largely build on the existing VASP framework (so VASPs are not starting from zero), but will introduce additional requirements and more formalised supervisory expectations.

In practice, plan for:

Under the expected CASP framework, capital requirements increase depending on the services you offer, and you should also budget for a €475 state application fee.

Indicative capital «classes» include:

When it comes to corporate tax, Portugal applies standard corporate income tax of 21% on the mainland and 20% on the island of Madeira. Also, crypto-related corporate profits may be taxed up to 28%, depending on how the activity and income are classified.

This overview helps founders compare top jurisdictions and decide what is the best country to get a crypto license for a startup based on regulation, tax policy, and ecosystem strength.

One of the most important steps in how to start a crypto business is selecting a jurisdiction that aligns with your business model, funding plans, and long-term goals.

Use the checklist below to evaluate each option with clarity and confidence.

Some countries have fast-track approvals, while others involve lengthy reviews and detailed documentation. Delays can slow product launches and impact investor expectations.

Consider whether the jurisdiction’s reputation supports your fundraising goals, especially if you’re building an investment platform targeting institutional partners. Well-regarded regulatory environments can boost credibility with VCs, institutional partners, and enterprise clients.

Beyond headline tax benefits, look at ongoing reporting, AML obligations, and operational costs to ensure your business remains scalable.mains scalable.

Smooth fiat on/off ramps are essential for user experience, settlements, and day-to-day operations.

Consider whether local rules align with international standards such as MiCA, and whether the market offers the ecosystem support needed for future results.

Access to compliance specialists, engineers, legal expertise, and accelerators can significantly reduce friction as you grow.

Evaluating these factors together helps founders choose a jurisdiction that supports both operational stability and long-term strategic growth.

Choosing the right jurisdiction is only one part of building a successful crypto startup. You also need reliable, compliant infrastructure to operate globally. Mercuryo helps founders bridge fiat and crypto seamlessly, offering secure on/off ramps, compliant payment flows, and settlement tools that work across borders.

With regulatory requirements tightening worldwide, having a foundational infrastructure partner that prioritizes trust, compliance, and user experience is essential.

To support your global expansion, explore how Mercuryo simplifies cross-border payments and enables crypto businesses to scale with confidence.