Best jurisdictions to register crypto projects.
Today, the cryptosphere is in at the new stage of development. It differs from previous ones as more and more countries try to regulate the usage, offering, and storage of cryptocurrencies on their territory. The cryptosphere is still a new industry for legislation. Each country tries to find a compromise between the freedom of market, protection of consumer rights, and the government’s interests. Thus, the lack of identical regulation and competition between jurisdictions led to the emergence of a particularly crypto-friendly jurisdictions. To avoid getting lost in such a variety of jurisdictions, it is necessary to understand the criteria for choosing the country for registration of your project, taking into account its specifics.
The criteria for choosing a jurisdiction to register cryptoprojects
When building a business structure and choosing the best place to register a company, it is necessary to highlight the main points characterizing your business. The answers to the following aspects will be the basis for selecting the optimal jurisdiction for your project:
- Fiat. Although blockchain removes financial borders, businesses often need tools to use and store traditional fiat funds for the company’s operational needs;
- Target market. Where are your primary customers who are planning to buy your product located? They can be in Europe, Asia, Africa, Latin America, or other regions. The answer to this question allows you to choose the best payment solution and provide the ground for selecting the most appropriate jurisdiction for the project registration, and this will allow direct marketing in the country with the most significant share of potential customers;
- Prestige. Depending on the company’s goals, this paragraph may determine the entire future structure of the project. In other cases — it will not affect the structure of the company;
- Price and Terms. When selecting a jurisdiction, you must first understand the cost of establishment and maintenance of such a project, as well as the approximate term of company registration. This aspect is directly affected by the level of the business orientation of selected jurisdictions, the local financial (cryptocurrency) regulator practice, and how developed is the employment market.
Based on the above characteristics, it is possible to identify compatible jurisdictions that will be optimal for the conduct of crypto activities in each particular case.
Registration of cryptoprojects in the UK
The UK is one of the best jurisdictions for effectively promoting crypto products. The jurisdiction has been a highly reputable, prestigious, and promising place for international businesses for many years.
British residency for your company allows you to use most financial solutions. Registration of the company is fast, and the local regulator is experienced in dealing with fintech projects. However, it is worth considering the possible difficulties with direct marketing in the EU due to the fact that the UK has left the European Union in 2020.
Requirements for registration of a crypto company in Poland
Registration of a crypto company in Poland is a relatively new solution for the European crypto business, but it quickly gains leadership in to the number of issued licenses.
Registration of a crypto company in Poland allows you to use the European Union’s advantages: access to the European financial system, trust from partners and customers, and the possibility of business scaling. The regulator is friendly to cryptocurrencies, and the benefits are exemplified by the company’s low cost of opening and maintenance, as well as by the simplicity of passing all registration stages.
Crypto business registration in UAE
The UAE is a world-renowned jurisdiction that offers excellent conditions for entrepreneurs in its free economic zones. VARA (Virtual Asset Regulatory Authority) provides one of the best requirements for obtaining a crypto license today and allows licensed firms to provide crypto services in the Middle East and Africa. Thanks to the VARA license in Dubai, you can register a company and start economic activity relatively quickly and without difficulty.
Obtaining a cryptolicense in Kazakhstan
If you are interested in the Central Asian market, we recommend you obtain a crypto license at the International Financial Center «Astana» (AIFC). It is a unique center on the world’s economic map, which allows businesses and financial institutions to access new markets. It provides a friendly ecosystem with high-quality infrastructure and independent regulation.
Registration of a crypto company in Hong Kong
Hong Kong is one of the East Asia’s best places to do crypto business. Despite the ongoing regulation of virtual assets services, today is the best time to register a company for this activity in Hong Kong. The transition period provided by the regulator within the framework of the entry into force of the new legislation on cryptocurrencies in March 2023 will allow already existing businesses to gain an undeniable advantage over new players in the market. Companies that are registered before the December of 2022 will be able to offer virtual assets services during the period of obtaining the license (but not later than 01 December 2023).
Specifics of registration of cryptoprojects in Canada
Canada is a good option for crypto startups, as it allows you to quickly and inexpensively open a licensed company that can operate in many countries. The disadvantage is in the fact of the low prestige of this license, which is manifested in specific difficulties with the connection of fiat payment solutions.
Advantages of Saint Vincent and the Grenadines for cryptocurrency business
SVG is one of the most cryptocurrency-friendly offshore jurisdictions. The advantages and disadvantages of this solution are reflected in the international offshore status of the jurisdiction of SVG. This is an excellent option for startups who want to test their business model without the lengthy and expensive process of obtaining a license to operate. This solution is simple, cheap, and quick to implement. However, due to the presence of this jurisdiction in the Financial Action Task Force (FATF) lists, it is almost impossible to find a proper payment solution for such a company to work with fiat funds. SVG is your choice only when working exclusively with cryptocurrencies.
As we can see, there are many crypto-friendly jurisdictions, each of which can be perfect for your business. If you need to obtain a crypto license and choose the best jurisdiction for your business, — don’t hesitate to contact SBSB Fintech Lawyers. Since 2013, we have been working with FinTech and Crypto, so we offer individual solutions to each customer based on his company’s business model. Our experts will help to choose the optimal jurisdiction and prepare a package of documents, legalizing the crypto business following the legislation of the selected jurisdiction and providing full legal support for this process.