Top Crypto-Friendly Jurisdictions in 2025: Global Overview

In 2025, the global crypto market is demonstrating steady recovery and robust growth following previous periods of instability. Key events in recent years, including the launch of Bitcoin ETFs, halving, and changes in the political landscape, have given a powerful impetus to the further adoption of digital assets. The total market capitalization has exceeded $2 trillion, and interest in blockchain technologies from businesses and investors has reached new heights.

Against the backdrop of this positive momentum, the choice of a jurisdiction favorable to conducting cryptocurrency activities is becoming particularly important. In many countries, the regulation of digital assets is becoming increasingly transparent, opening up opportunities for companies to operate legally and grow steadily. Some countries have already become full-fledged digital finance hubs, actively promoting technology and offering favorable conditions for startups, crypto exchanges, DeFi platforms, and blockchain developers.

In this review, experts from Gofaizen & Sherle present an up-to-date list of countries that are most suitable for registering a cryptocurrency company in 2025.

What Does “Crypto-Friendly Jurisdiction” Mean?

Cryptocurrency is a digital form of money that operates based on blockchain and is protected by cryptographic methods. It is decentralized and not controlled by central banks, and all transactions on its network are transparent and resistant to interference. For such assets to develop and be used freely, the state must not prohibit them, but rather guide them and be “crypto-friendly.”

A “cryptocurrency-friendly jurisdiction” refers to a country or region where the most comfortable conditions have been created for opening a cryptocurrency company, doing business, developing blockchain projects, and legally using digital assets. Such jurisdictions are becoming the best place to obtain cryptocurrency registration thanks to a combination of legal clarity, tax incentives, and technological support.
Regulatory transparency is one of the key features of a friendly jurisdiction. This means having clear laws governing the circulation and storage of digital assets, as well as the operation of cryptocurrency exchanges, wallets, and financial services. Such a legal framework reduces risks and makes the market predictable for both startups and investors.

Another important aspect is tax incentives. Exemption from capital gains tax, reduced income tax, or no income tax at all—all of these make a country attractive for long-term storage and trading of cryptocurrency. Examples of such countries include El Salvador, Switzerland, Malta, Luxembourg, and Georgia.

Technical infrastructure also plays a role. The presence of officially registered crypto exchanges, functioning crypto payment systems, ATMs, digital wallets, as well as banks willing to cooperate with cryptocurrency projects. This creates conditions for the real application of technologies and the growth of the industry.

Finally, government support for innovation, the launch of regulatory sandboxes and digital transformation programs, as in the UAE, Canada, Hong Kong, and Estonia, allow countries to actively develop the blockchain ecosystem and implement Web3 solutions at the state level.

Thus, a “crypto-friendly jurisdiction” is not just a country with a loyal attitude towards digital assets. It is an entire ecosystem focused on development. It is precisely these countries that are the best choice for obtaining cryptocurrency registration and launching a sustainable business in the field of decentralized technologies.

Now that we have figured out what makes a jurisdiction favorable for crypto business, let’s try to choose the best place to obtain a licensed cryptocurrency exchange. Below, we will look at 10 countries that, in the subjective opinion of our experts, are the most crypto-friendly in 2025.

El Salvador

El Salvador is rightly considered one of the most crypto-friendly countries. In 2021, it became the first country to officially recognize Bitcoin as legal tender alongside the US dollar. This historic decision not only changed the country’s financial landscape but also strengthened its position as a leading player in the digital economy. All businesses are required to accept Bitcoin payments, and the government is actively promoting the use of cryptocurrencies through initiatives such as the Chivo state wallet and the planned Bitcoin City project — a tax-friendly hub financed by Bitcoin bonds.

In addition, El Salvador offers unique tax conditions: profits from Bitcoin transactions are not subject to capital gains tax, and foreign crypto investors are exempt from income tax. A simplified digital asset registration procedure and flexible regulation create a favorable environment for blockchain businesses, DeFi platforms, and crypto exchanges. All this makes El Salvador not just a symbol of progress, but one of the best places to open a licensed cryptocurrency exchange.

Canada

Canada confidently holds the position of one of the most crypto-friendly countries thanks to clear regulation, a strong blockchain ecosystem, and the availability of innovative financial instruments. In the country, cryptocurrencies are officially classified as commodities, which provides legal certainty and transparent tax rules, including the obligation to pay capital gains tax. The Canadian Securities Administrators (CSA) provide detailed guidance on crypto investments, which helps protect the interests of market participants and promote the development of the industry.

Registering cryptocurrency companies as Money Service Businesses (MSB) or Foreign Money Services Businesses (FMSB) with FINTRAC provides a reliable legal status and facilitates their integration into the financial system. British Columbia and Ontario have emerged as leading hubs for blockchain innovation and AI-based solutions. Canada was also one of the first countries to approve cryptocurrency ETFs, thereby providing investors with legal and convenient access to digital assets. A developed infrastructure — including thousands of Bitcoin ATMs and support from banks — makes Canada an attractive platform for both crypto startups and institutional investors.

USA (Montana)

The US remains one of the key players in the global crypto industry, despite a complex regulatory system where powers are divided between the federal and state levels. The state of Montana plays a special role in promoting cryptocurrency freedom. The Financial Freedom and Innovation Act (SB 265), passed in 2025, makes Montana one of the most crypto-friendly jurisdictions in the country. This law allows the use of digital assets and blockchain protocols, prohibits the use of CBDCs by government agencies, and introduces certification for network token issuers.

Montana’s legislation also allows the state treasury to invest in cryptocurrencies and stablecoins, underscoring institutional confidence. The state also offers tax and operational incentives for crypto mining companies, attracting major players in the mining industry. Thanks to low electricity prices and support for innovation, Montana is becoming a favorable environment for technology projects, despite companies’ obligations to comply with federal FinCEN, AML, and KYC requirements.

Switzerland

Switzerland is also considered one of the most crypto-friendly countries in the world. This is facilitated by a combination of progressive regulation, a strong financial infrastructure, and a favorable tax regime.

The Swiss regulator FINMA plays a key role in shaping transparent and predictable rules for the crypto industry. It was among the first globally to develop guidelines for token classification and ICOs, thereby creating legal clarity for blockchain projects.
Crypto Valley, a center for crypto innovation in the canton of Zug, where major players such as Ethereum and Cardano are based, occupies a special place. This region has become a symbol of Switzerland’s openness to crypto technologies. Blockchain solutions are being implemented in government services here, and some municipalities accept tax payments in cryptocurrency.

Switzerland offers tax advantages to private investors, in particular, no capital gains tax on cryptocurrency held as a personal asset. At the same time, professional traders and miners are subject to income or corporate tax and property tax.

Bosnia and Herzegovina

Bosnia and Herzegovina is gradually becoming one of the most crypto-friendly jurisdictions in Europe. Although the country does not yet have comprehensive cryptocurrency regulations, important steps are already being taken to create a stable legal framework. The Republika Srpska stands out in particular, with specific laws on digital assets and the securities market that recognize cryptocurrencies and regulate the activities of virtual asset service providers (VASPs). Changes are also taking place at the federal level: from 2024, the concept of VASP will be enshrined in legislation, which indicates the intention to unify regulation across the country.

Bosnia and Herzegovina attracts investors with its flexible regulations. As a non-EU country, it is not required to comply with the strict MiCA directives, which makes the local jurisdiction more accessible for crypto businesses. Added to this are low taxes, simplified company registration, a low minimum capital requirement, and no physical office requirements in some cases. All of this lowers the barrier to entry for foreign investors.

Australia

Australia is considered one of the most crypto-friendly countries thanks to its balanced approach to regulation, clear tax policy, and active support for innovation in blockchain technology.

Cryptocurrency regulation in this jurisdiction is still developing, but there is already a system in place to monitor compliance with anti-money laundering and counter-terrorist financing (AML/CFT) measures, which is overseen by AUSTRAC. In the coming years, the Australian Securities and Investments Commission (ASIC) will also become a key regulator, responsible for licensing cryptocurrency exchanges and brokers. In addition, the Australian Taxation Office provides clear and understandable instructions on the taxation of cryptocurrency transactions, which reduces legal uncertainty and promotes market confidence.

The registration process for virtual asset service providers (VASPs) takes an average of only 3-4 months. The procedure itself includes submitting a business plan, describing transaction rules, confirming financial stability, and team qualifications.
The country pays special attention to supporting crypto startups, especially in tech hubs like Sydney and Melbourne. Developed infrastructure, transparent pricing for crypto wallet creation services, and the implementation of AI-based solutions make Australia an attractive place for innovation in the field of digital assets.

Panama

Panama is an attractive jurisdiction for crypto businesses and international investors thanks to a combination of a favorable tax system, progressive legislation, and a developed financial infrastructure.

A key advantage is the territorial principle of taxation. This means that income earned outside the country, including profits from cryptocurrencies, is not taxed. In addition, there are no capital gains taxes, dividends, or VAT on digital asset transactions, making crypto-related activities in Panama particularly attractive and tax-efficient.

Since 2021, the country has been actively developing legislation regulating cryptocurrencies. Although Bill No. 697, aimed at digitizing the economy and creating a legal framework for blockchain solutions, has not yet come into force due to a presidential veto, its content reflects Panama’s strategic course of supporting innovation. It provides for the introduction of blockchain technology into government services, legal recognition of crypto assets, AML/CTF standards, and the creation of conditions for issuing crypto licenses.

Cayman Islands

The Cayman Islands attract crypto entrepreneurs thanks to a combination of a transparent regulatory framework and a favorable business environment. The Virtual Asset Service Providers Law (VASP Law) plays a key role in this, introducing a clear licensing procedure for crypto companies and requiring them to comply with international standards on anti-money laundering (AML) and counter-terrorist financing (CFT). Compliance with the requirements is monitored by the Cayman Islands Monetary Authority (CIMA), which provides regulatory support and oversight to companies.

An additional advantage is the availability of a “sandbox” license, which allows innovative solutions to be tested within a flexible legal framework. This promotes technological development without compromising consumer safety. The process of obtaining the main license takes an average of four to six weeks.

The Cayman Islands do not levy taxes on income, capital gains, dividends, or crypto transactions, making them particularly attractive to crypto businesses, investors, and funds. A developed infrastructure in finance, IT, and telecommunications complements their reputation as a stable, flexible, and digitally-oriented jurisdiction.

Anjouan (Comoros)

Anjouan, one of the islands of the Comoros archipelago, has also established itself as one of the most crypto-friendly jurisdictions. This has been made possible by the International Crypto License issued by the local Offshore Financial Authority (OFA). The license covers virtually the entire range of services related to virtual assets — from cryptocurrency exchange and storage to ICOs, mining, and CFD trading.

One of the main advantages is the speed of licensing. You can get a license in just 10–15 days, while compliance requirements (AML/KYC) remain minimal. The license is recognized by banks, and a registered company can open bank accounts and interact with international payment systems. In addition, the absence of corporate tax and VAT on financial services makes the jurisdiction particularly attractive for fintech startups.

Another advantage is flexibility. The license can also be issued to companies incorporated outside the Comoros, allowing them to build profitable offshore structures with simultaneous access to banking infrastructure. The confidentiality of business owners is also reliably protected — their data is not included in public registries.

United Arab Emirates (UAE)

The United Arab Emirates, particularly the cities of Dubai and Abu Dhabi, is also attracting crypto businesses. This is primarily facilitated by the Virtual Assets Regulatory Authority (VARA), which offers a clear and modern regulatory framework for crypto companies. VARA ensures transparency by balancing innovation and investor protection, and offers licenses for various types of activities, from crypto exchanges to NFT platforms.

In addition, free economic zones such as the Dubai Multi Commodities Centre (DMCC) are actively developing in Dubai. These are full-fledged crypto ecosystems with ready-made infrastructure, preferential registration conditions, and minimal administrative burden. DMCC and similar zones make launching a crypto project fast and predictable.

A key advantage of the UAE remains the absence of income and capital gains tax for most types of digital activities, which is particularly attractive to international investors and crypto startups. This combination of regulation, infrastructure, and tax policy makes the Emirates an ideal gateway to the Web3 market.

Choosing the right country to register a crypto business requires a balanced approach. It is important to consider regulatory transparency, tax burden, availability of licensing, and level of infrastructure development. Also, consider matching all the advantages and disadvantages of the jurisdiction with the objectives and capabilities of your business.

When it comes to the best countries for crypto businesses in 2025, the following stand out:

• UAE offers clear regulation through VARA, zero taxation, and a modern ecosystem (DMCC), making the country ideal for crypto entrepreneurs.
• Switzerland and the Cayman Islands also provide stable and well-established regimes with a high degree of investor confidence;
• El Salvador is attractive with zero taxes and official Bitcoin recognition, but it is still limited in terms of infrastructure.
• Anjouan is suitable for those looking for quick registration and minimal requirements, but there is little to no developed crypto ecosystem.
• The USA and Bosnia and Herzegovina may suit companies prepared to navigate limited regulatory framework. In the U.S., problems arise at the federal level, although, for example, the state of Montana has seen a relaxation of regulations. Bosnia and Herzegovina is attractive because of its lack of stringent controls and low barriers to entry.

In 2025, ensuring compliance with a sustainable and regulated jurisdiction becomes the foundation of a long-term strategy. If you are planning to start a crypto business, obtain a crypto license, or sell your project, contact our team for professional support. We will help you go from an idea to a licensed business quickly and legally.