Top 5 Crypto-Friendly Jurisdictions in 2025–2026

Based on our experience, more than half of the inquiries we receive from clients are focused on selecting the right jurisdiction for their crypto business. This is key to successfully launching a project, so we’ve compiled a list of the top 5 countries with the best crypto licensing conditions in 2025-2026:

1. European Union (MiCA Regulation) for mature and ambitious businesses

Starting in January 2025, the Markets in Crypto-Assets Regulation (MiCA) will be enforced across all EU countries. For crypto companies, this means the need to obtain CASP status — Crypto Asset Service Provider. If your business is ready for expansion and new markets, the MiCA license will open doors to 27 EU countries. While the process requires certain efforts (an office in the EU, a local director, capital of €50,000), it is an ideal step for a company aiming for international growth and serious ambitions.

2. El Salvador (Bitcoin Pioneer)

If your project is looking for simplicity and speed, El Salvador is the option to consider. The first country to make Bitcoin official currency offers a quick process for obtaining BSP and DASP licenses. The requirements are minimal — $2,000 in capital and a virtual office — with setup usually completed within 3-6 months. Tax incentives and fast registration make it a perfect choice for crypto startups.

3. Bosnia and Herzegovina (Cost-Effective Path to the EU)

If your goal is to enter the European market with minimal costs, Bosnia and Herzegovina is an option to consider. The minimum capital is only $580, and registration takes just 4 months. This is a great choice for those looking for an economical solution while keeping in mind the potential to access larger EU markets.

4. Cayman Islands (No Physical Presence Required)

For crypto exchanges and custodial solutions, the Cayman Islands is the optimal choice. No physical presence, local staff, or minimum capital is required. The license in this jurisdiction allows for a quick business launch without bureaucratic hurdles. We will fully support you in registering in the Cayman Islands.

5. Unlicensed Jurisdictions (For Startups and MVPs)

If your project is at the MVP stage and you are not yet working with fiat currencies, consider flexible offshore jurisdictions like Panama or Costa Rica. These offer fast registration, no minimum capital requirements, and minimal tax obligations — an ideal start for startups just beginning their journey in the crypto world.

Choosing the right jurisdiction is crucial as it affects your tax obligations, market entry speed, expansion potential and the overall success of your crypto business globally.

We’re here to support your crypto project from start to finish, considering everything from taxes to licensing efficiency. Get in touch with us: bio.link/sbsb.