1.
● Well, we have already discussed legal crypto compliance and taxation
outlook in our previous articles. In this article, to conclude, we will be
discussing the best regions for legal crypto business across the globe.
● Let’s get started! Establishing a business in the best countries that can
welcome it with open arms can be overwhelming. Especially, when you
are talking about setting up centralized crypto exchanges or white label
Cryptocurrency exchange platform, it is important to place the best
region. Since the governments around the world are now aware of
cryptocurrencies, their legal compliance and taxation guidelines, you have
to think twice before launching any crypto startup. The government can
either crackdown on your company or allow it to flourish in the crypto
ecosystem approved by the government’s laws.
● However, there are some jurisdictions that emerged as being a lot better
than others for individuals who want to launch a crypto startup.
● In countries like India or China, you would find yourself stuck in a situation
if you are dealing with Cryptocurrency. Reason – In India, Reverse Bank
announced in 2018, it would not provide services to any individual who is
in the business of cryptocurrencies. In China, all domestic authorities
banned ICOs and local crypto exchanges in September 2017.
Introduction

2.
● Therefore, if you are planning to launch a crypto startup, it is important
for you to study the regulatory framework as well as the government
policy in a number of jurisdictions. You should also know about the
current taxation outlook, a number of fintech companies that would
support your business in the region you are considering to set up a
business. In this article, we will be sharing some of the best regions that
are worthy of consideration before you settle your crypto startup. Please
take a look!
Introduction

3.
● Undoubtedly, the USA is counted amongst the hotbeds for crypto companies.
In this country, you can find renowned and successful crypto exchanges, wallet
developers, and crypto miners. The government of the USA has enacted
straight-forward legal compliance for crypto businesses or companies.
However, crypto regulations and policies vary from state to state and a few
taxation guidelines are being unclear in the USA.
● In 2019, lawmakers filed a bill to generate tax exemption for specific
Cryptocurrency transactions. All-in-all, the crypto community in this country is
still booming and the technology is managing to enter the mainstream. For
instance, in 2018, Ohio allowed companies to pay a variety of tax with bitcoin,
including tobacco sales tax and employee withholding tax.
 USA
USA

4.
● Invariably, Japan is being able to have some amazingly progressive Cryptocurrency
regulations across the world. Consequently, around 10% of the total worldwide traffic
to Cryptocurrency exchanges comes from Japan. Amazed?
● In 2017, Japan has recognized crypto assets as a legal tender and launched straight-
forward tax guidelines for aspired investors. This was the big deal since launching
detailed guidance by the national tax authority of any region on virtual assets has
been a noteworthy concern for businesses as well as individuals.
● The crypto industry in Japan has also been given the leverage to self-govern in a way
that is adaptive and accommodating. The Japanese Virtual Currency Exchange
Association includes more than twenty organizations having collective authority to
enforce and pass regulations for crypto exchanges in Japan.
 Japan
Japan

5.
● Switzerland is also counted amongst the best nations that have been in favor of the
Cryptocurrency business. In this region, many crypto startups have been encouraged
to get settled there and in 2019, Switzerland declared a new legislative approach to
Blockchain.
● Generally, Switzerland managed to provide a low-tax ecosystem for businesses and
bitcoin startups that are already based in Switzerland. Tax regulators of this country
consider cryptocurrencies to be assets, subject to wealth taxes that should be
announced in annual returns.
● Zug is a canton in Switzerland, popular by the name of ‘Crypto Valley’ after it issued
various progressive laws regulating the usage of Cryptocurrency and related
businesses.
● According to a report in 2018, it was declared that the top 50 blockchain and
cryptocurrencies based companies in this country’s Crypto Valley alone to be worth
$44 billion. The state railway even accepts BTC for payments of tickets. Swiss Banks
like Julius Baer also permit direct transfer and deposits of select cryptocurrencies.
 Switzerland
Switzerland

6.
● In Canada, Bitcoin has a solid community. Canada has also taken some serious
regulatory steps to embrace the virtual currency. Vancouver is home to QuadrigaCX –
a defunct crypto exchange that lost C$180 in customer funds after its founder’s
alleged death.
● More than 2 dozens merchants in this region can accept bitcoin. Residents of
Vancouver can purchase Bitcoin at nearly 40 ATMs. Waves Coffee House is the
world’s first Bitcoin ATM that was begun on 29, October 2003, in downtown
Vancouver. This city is home to more than 631,000 citizens.
 Vancouver
Vancouver

7.
● Tech-savvy Singapore also counted in the best countries to support Cryptocurrency
businesses. This region is just another jurisdiction that is worth considering if you are
planning to launch centralized crypto exchanges startups. Before 2019, the regulatory
framework for Cryptocurrency was not that clear and some businesses were not able
to expand due to multiple issues with their bank accounts. Currently, Singapore’s
financial regulator is open to crypto companies that are working with banks to reach
an agreement to permit businesses to expand. In 2018, the Central bank of Singapore
had finalized a new regulatory framework for payment-related services, which
currently include Cryptocurrency.
● Singapore is a huge tech and business community that is ideal for several investors
and aspired crypto startups.
 Singapore
Singapore

8.
● Malta is a small European Island Nation whose parliament has taken an
unquestionably pro-Bitcoin stance, with the Prime Minister calling crypto the
inevitable future of money. Parliament of this region passed 3 bills offering a
framework for Blockchain technology in July 2018.
 Malta
Malta

9.
● When it comes to tax advantages, Luxembourg, being a small landlocked
European region with around 600,000 residents is a considerable contender.
The CSSF (Commission de Surveillance du Secteur Financier was one of the first
financial regulators in the European Union to offer commentary on
cryptocurrencies with its Bitcoin Communique 2014.
● In this European nation, cryptocurrencies are considered as intangible assets –
which mean they are not subject to income tax until they are disposed of.
Moreover, all Cryptocurrency-related transactions are exempt from VAT.
● This country is also quite a good region to attract the talent for Crypto
companies, with the innovative University of Luxembourg which is now dealing
in exchanging the securities of Cryptocurrency assets.
● Tokyo-based Bitflyer was granted with a Payment Institution License to
function in the EU. So, this Bitflyer has many offices in the European country.
 Luxembourg
Luxembourg

10.
● Cryptocurrencies in Australia are legal and treated as property. Crypto
exchanges are also legal in Australia. If you are willing to open an exchange,
you must register with AUSTRAC (Australian Transaction Reports and Analysis
Centre). Crypto regulations demand exchanges functioning in the country to
register with AUSTRAC, identify the users, verify them, maintain records, and
comply with AML/CFT reporting obligations of the Government. However,
exchanges that are unregistered will be subject to criminal charges as well as
financial penalties.
● Previously, cryptocurrencies had been subject to controversial double taxation
under the goods and services tax of Australia. The improvement in tax
treatment is indicative of the government’s progressive approach to the
Cryptocurrency issue. Thanks to AUSTRAC who announced a new set of
Cryptocurrency exchange regulations in 2018.
 Australia
Australia

11.
● If you are a crypto entrepreneur, the Cayman Islands is one of the perfect
jurisdictions to be considered. In the Cayman Islands, not just will you almost
everything your company needs to grow, but with no tax policy, it will be
possible for you to reinvest far more in developing your crypto project.
● And even if you will want to sell your crypto business, you will be able to make
your easy exit without having to worry about paying a single penny in capital
gains tax. As a result, you will end up saving millions in your pocket.
● Moving your exchange to the Cayman Islands begins by talking to a bunch of
lawyers and tax advisors to ensure that it is suitably a good choice. For
businesses especially working on Blockchain technology, it is an apt
environment that enables a company to evolve and brings innovative ideas to
fruition.
● Choosing the Cayman Islands for setting up your crypto business will help you
bring in your team from anywhere across the globe. Therefore, this place will
provide you with three things – less hassle, more money, and white sand
beaches. Undoubtedly, the Cayman Islands is one of the best crypto hubs
nowadays.
 Cayman Islands
Cayman

12.
● According to research, Estonia had managed to house around 700 foreign
businesses working on cryptocurrencies and Blockchain in April 2019. This
progressive outcome is mostly due to the forward-thinking policies launched in
Estonia. If you are planning to establish a crypto business in Estonia, then you
can easily get a crypto license. Two types of licenses can be acquired in Estonia.
Each of them is followed by a simple process that can take up to 30 days.
Moreover, the entire process demands minimal involvement. You will need
some basic documents to get your background checked.
● In Estonia, your company can be easily managed by one person remotely. You
will not need to set up a local office in Estonia or to create a specific number of
jobs within Estonia.
● This country promotes the development of small businesses by enabling them
to reinvest their profits. Or in other words, you can function tax-free if you do
not distribute profits to yourself. If you do, then they will be taxed at the
standard prices.
● If your company is registered in this country and any of its profits are
distributed to the company’s owner, it is subject to Estonian corporate income
tax. If your owner is a resident of some other country, then all income, as well
as dividends from the company, will be taxed there additionally. According to a
legal update of 2019, the Estonian government has empowered the Financial
Intelligence Unit to personally interview those persons who are seeking a
crypto license.
 Estonia
Estonia

13.
● Now that we have shared some of the best countries that
encourage the use of cryptocurrencies and the launch of crypto
exchange startups, you can get yourself prepared for the future.
Other regions that are also worth considering include Mauritius,
Gibraltar, and Bermuda. All of these countries are adopting a
positive stance towards cryptocurrencies since their governments
and regulators have recognized the hidden potential to renovate
legacy financial systems in these countries. If you are struggling to
launch your crypto startup, have some faith in such countries that
are mentioned above.
Final Thoughts

14.
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