Location matters. Regulatory clarity, tax structure & infrastructure are key for crypto startups.
Some countries offer near-zero crypto taxes and dedicated regulatory sandboxes for blockchain businesses.
Always match your startup’s business model (exchange, DeFi, payments, NFT) with a country’s legal & operational environment.
Blockchain ventures now face several challenges, including regulatory, tax, banking access, talent, and infrastructure-related issues. However, founders must carefully choose their jurisdiction. Some countries are ideal for crypto-related businesses, all thanks to their clear legal frameworks, robust ecosystem support, and favorable business environments.
Let’s take a look at the countries listed below that offer the best conditions for starting or expanding a blockchain or crypto startup.
The UAE is a highly influential hub for cryptocurrencies in 2025. Its policies, such as those of the Virtual Assets Regulatory Authority (VARA) in Dubai, are simple, transparent, and open.
Highlights:
Zero or very low personal income tax on crypto gains.
The commentary is specific to crypto businesses, noting established free zones and licensing regimes.
Robust ecosystem of start-ups, global exchanges, and incoming talent.
The UAE offers an excellent location for exchanges, token platforms, and DeFi builds to scale up in a supportive regulatory and financing environment.
In Switzerland, and in particular ‘Crypto Valley’ in Zug, it has always been a top choice for blockchain start-ups.
Highlights:
Transparent legal framework and regulatory regime under the DLT Act in respect of tokenised assets.
In some cantons, advantageous tax treatment for individuals and companies.
Switzerland is an excellent option for firms focused on token issuance, custody solutions, and infrastructure that want to be in a stable, quality-regulated environment.
Singapore, the strongest player in Asia for crypto startups, is so because of its friendly business climate and clear regulations.
Highlights:
Clear licensing regime under the Monetary Authority of Singapore (MAS).
Gateway to Southeast Asia, strong fintech & blockchain talent.
Singapore is beneficial for wallet services, DeFi infrastructure, and the scaling of operations in Asia with predictable regulatory oversight.
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Portugal and Malta (Europe’s crypto-friendly twosomes) each offer a blend of tax incentives and crypto-friendly legislation, which makes them very appealing to founders.
Portugal Highlights:
Historically, Portugal has been exempted from taxation on crypto-to-crypto trades and tax programs for foreigners.
Malta Highlights:
As one of the first countries to adopt dedicated crypto laws, it is ideal for token issuers and other blockchain businesses.
If you plan to move, these jurisdictions should remain more affordable to enter, with more favorable tax policies and stronger legal frameworks for blockchain businesses.
If you are starting a cryptocurrency business in 2025, finding a suitable country is just as vital as your business model. The UAE can be your first choice for regulatory clarity, tax advantages, and scalability.
On the other hand, Switzerland provides a well-regulated market where one can trust the institutions. Moreover, Singapore facilitates access to Asian markets and talent. At the same time, Portugal and Malta offer robust European alternatives with tax-friendly policies.
1. What makes a country ‘crypto-friendly’ for startups?
A mix of omitting fees for special licenses, tax incentives, bank access for crypto, workers, and the needed facilities.
2. How important is tax treatment for crypto startups?
To illustrate, the significant taxes on capital gains, corporate tax, VAT, and crypto each affect profitability in specific ways, impacting treasury in addition to investor returns.
3. Can I relocate my crypto startup easily to these countries?
It varies. Even in the most accommodating jurisdictions, one will have to go through licensing, compliance, and residency/visa processes, and operate in accordance with local rules.
4. Do these countries support crypto banking services?
Sure, most of these countries have banks or fintech businesses that are open to dealing with crypto companies, providing them with accounts for their exchanges and blockchain start-ups.
5. Which country is best for early-stage crypto founders on a budget?
Portugal often ranks among the preferred countries for startups with limited capital due to its lower operational costs, an attractive tax regime, and a large crypto community.