Top 15 Crypto-Friendly Countries for Businesses in 2025

Global regulations on cryptocurrencies and digital assets evolve every day. You have countries that enable businesses to create a crypto exchange and transact in blockchain-based currencies, while some jurisdictions ban dealing with Bitcoin, Ethereum, and other cryptos.

Therefore, it is essential to know where you can legally establish a business and what markets enable you to expand your products and services. This requires a vast understanding of local market needs, service gaps, and the advantages you offer compared to existing competitors.

This and more will be discussed in this article, including the best crypto-friendly countries where your blockchain business can thrive.

What Makes a Country Crypto-Friendly?

For brokers, exchanges, and financial institutions delving into digital assets, selecting the right jurisdiction is more than just a regulatory checkbox. It is a foundation for long-term growth that directly affects capitalising on opportunities, profitability, and business sustainability.

Moreover, it can drive client conversion and retention rates, as well as the speed at which you can expand into new markets. An example of a crypto-friendly country is one where clear rules are combined with a supportive environment, providing companies with the certainty they need to innovate and thrive without constant legal risk.

Several factors determine a country’s tolerance towards crypto assets, including regulatory clarity, tax treatment, banking access, governmental support, and tech infrastructure. These elements draw the line between jurisdictions where crypto businesses can thrive and those where restrictions can drive opportunities into losses.

Regulatory Clarity 

In the crypto space, regulatory uncertainty and restrictions can cripple business expansion. Therefore, you must rely on transparent frameworks that allow brokers and institutions to know exactly how they are expected to operate.

Regulations on digital assets and token classifications are very crucial, especially after the US Securities and Exchange Commission changed its treatment of Bitcoin to a non-security asset. Operating with a framework that fairly protects companies and investors and sets clear rules is vital for business growth.

Tax Treatment 

Crypto exchanges, transactions, and income from transactions are taxed by most governments. For example, the IRS classifies cryptocurrencies, stablecoins, and NFTs as digital assets, which are taxed at different rates.

Other tax laws that affect profitability include corporate tax rates, capital gains exemptions, and financial incentives. Therefore, a perfect crypto-friendly country should have minimal taxes on crypto capital gains, income, and exchanges.

Banking Access

One of the biggest challenges for DeFi firms is reliable banking services. Without access to traditional finance, centralised/decentralised exchanges, digital payments, and advanced FinTech apps, businesses will face difficulties in supporting fiat-crypto payments and on/off-ramp exchanges.

On the other hand, jurisdictions where banks support blockchain businesses offer a substantial operational advantage. This simplifies liquidity access, custody arrangements, and financial settlements, supporting global growth with minimal disruption.

Government Support

A supportive government approach reduces political risks and nurtures long-term growth and commitment. Pro-crypto legislations adopt blockchain in public services, support DeFi pilot projects, and instil confidence in investors and institutions.

Conversely, a hostile or inconsistent governmental stance can pose operational challenges and deter brokers from committing to new markets.

Infrastructure

Infrastructure and technological advancements are the backbone of blockchain and cryptocurrency operations. Reliable power supply, high-speed internet, and secure data centres are critical for exchanges and brokers managing global trading volumes.

Therefore, crypto-friendly countries with robust digital ecosystems and scalable investment potential are the go-to for most crypto brokers and exchange platforms.

Top 15 Crypto-Friendly Countries for Investors

Many countries quickly adopted the development of cryptocurrencies, becoming leading hubs for digital assets, blockchain technology, and DeFi businesses. Each of these 15 crypto-friendly countries offers unique advantages and key operational considerations that matter to brokers.

#1 Malta

Malta has earned its title as the “Blockchain Island” by introducing the Virtual Financial Assets (VFA) Act, one of the world’s most comprehensive crypto regulatory frameworks.

It provides licensing clarity for exchanges, wallet providers, and token issuers, while also offering EU passporting benefits. Crypto businesses will gain credibility within the European market. However, they must be ready for extensive compliance, including rigorous audits and ongoing reporting.

#2 Singapore

Singapore is one of Asia’s most forward-thinking hubs for digital assets, thanks to its Payment Services Act (PSA), which establishes clear licensing categories for payment tokens and digital asset businesses.

Its financial infrastructure, business-friendly tax regime, and position as a global trading hub make it highly attractive to blockchain startups and growing Bitcoin platforms. However, regulatory requirements are tightening, with the Monetary Authority of Singapore prioritising investor protection and enhanced compliance obligations.

#3 Portugal

Portugal has grown into a top European destination for crypto businesses and digital investors due to its favourable tax policies. Retail traders will find leeway on crypto gains, while tech-savvy entrepreneurs will benefit from the Golden Visa programme to get EU residency.

For businesses, Portugal offers access to European markets with relatively light regulation, although tax rules for professional traders and corporates are becoming stricter.

This evolving landscape requires brokers to monitor changes closely, balancing lucrative opportunities with fair legislation that makes Portugal highly attractive to firms targeting European clients.

#4 Switzerland

Switzerland has long been a leader in digital asset regulation, with the Financial Market Supervisory Authority (FINMA) providing clear oversight and Zug’s “Crypto Valley” becoming a global innovation hub.

Brokers benefit from regulatory certainty, strong banking access, and reputational prestige. However, the advantages come with some costs, including elevated licensing fees, high compliance standards, and expensive operating environments.

#5 Estonia

Estonia’s digital-first ecosystem has given it a strong reputation among crypto entrepreneurs. Its e-residency programme allows remote founders to establish companies efficiently, while its government continues to pioneer digital transformation.

However, recent changes in Estonia’s crypto regulation have limited the number of active licences and raised compliance expectations. For brokers, it remains a top destination for its agility, European market access, and supportive business environment, although firms must now demonstrate stronger governance and risk controls than before.

#6 Germany

Germany offers a blend of strict oversight and opportunity within the EU. It offers some tax exemptions for long-term digital asset holdings, providing significant advantages to investors.

Other incentives include EU passporting rights and access to top-notch technology and banking systems. However, the Federal Financial Supervisory Authority (BaFin) is known for its high standards and strict enforcement, meaning firms must commit to transparency and compliance.

#7 Slovenia

Slovenia is a crypto-friendly country with a progressive approach to cryptocurrencies. The country has the highest market capitalisation of crypto and blockchain projects per capita, attracting DeFi companies and investors from around the globe.

It offers a favourable tax rate for businesses involved in digital transactions, with possible tax exemptions for profits made from selling DeFi coins.

Slovenia’s strong interest in blockchain development and substantial financial investments have supported the growth of numerous companies to thrive.

Moreover, mining cryptocurrency in the country is tax-free, as the rules are not stringent. However, individuals engaged in cryptocurrency mining are required to pay a 25% tax on their earnings.

#8 Canada

Canada is a global leader in crypto and blockchain technology, with a well-defined regulatory structure that balances investor interests and innovation. Cryptocurrencies are classified as commodities and subject to capital gains taxation, with clear standards and reporting requirements.

The country has a strong Bitcoin community and has no legislation that restricts its use. Crypto companies are classified as Money Service Businesses (MSBs) and must register with the Financial Transaction Analysis and Reporting Center of Canada (FINTRAC).

#9 Luxembourg 

Luxembourg, a Western European country, has become a major financial centre by fully embracing blockchain technology. The country prioritises financial innovation by developing crypto-related products and integrating blockchain technology into its financial system.

In 2016, Luxembourg recognised BTC as a valid payment method and its Financial Regulator granted Bitstamp a payment institution license, making it the first EU‑licensed cryptocurrency exchange in Europe.

#10 El Salvador

El Salvador was the first country to adopt Bitcoin as legal tender. Such a bold move attracted global attention and positioned the nation as a test case for large-scale adoption.

Its residency incentives and the “Bitcoin Bonds” initiative offer investment opportunities for businesses seeking exposure to emerging markets and supportive legislation. However, infrastructure limitations, reliance on external financial aid, and political uncertainty still worry investors.

#11 South Korea

South Korea hosts one of the world’s busiest retail trading communities, with DeFi deeply embedded in its financial culture. Exchanges enjoy high trading volumes and the government’s commitment to formalising taxation.

Brokers can gain access to a highly engaged, digital-savvy population with a high-demand market. However, the Financial Services Commission (FSC) enforces strict oversight and frequently changes associated laws.

#12 United Arab Emirates

The UAE has transformed into a global cryptocurrency hub, with Dubai’s Virtual Assets Regulatory Authority (VARA) and Abu Dhabi Global Market (ADGM) frameworks leading the way.

Its tax-free environment for individuals, government-driven innovation, and fast-growing ecosystem make it a magnet for tech-savvy entrepreneurs and crypto brokers.

The upside for brokers is access to Middle Eastern wealth, international connectivity, free zones, and opportunities for residency. However, emirate-specific differences and rising operational costs mean firms must adhere to more complex rules.

#13 Cyprus

Cyprus has become a favoured base for brokers due to its CySEC oversight, which offers credibility and EU access. Its moderate capital requirements and solid reputation make entry relatively accessible, while its established financial services sector provides an advanced infrastructure.

However, regulators have raised compliance expectations, pushing firms to demonstrate stronger governance to protect investors’ rights, requiring brokers to plan carefully and weigh the pros and cons before entry.

#14 Hong Kong

Hong Kong has positioned itself as a cryptocurrency powerhouse by reintroducing clear licensing under the Securities and Futures Commission (SFC).

Its world-class financial infrastructure, deep capital markets, and proximity to mainland China provide strategic advantages for crypto brokers and DeFi startups.

However, brokers must consider relatively strict restrictions on retail access and complex compliance requirements that require additional planning.

#15 Georgia

Georgia’s appeal stems from its low corporate tax rates and tax-free treatment of cryptocurrency for individuals. This has attracted miners, start-ups, exchanges, and brokerages seeking cost advantages.

While the Infrastructure is still less mature than in established hubs, low electricity costs and supportive local policy give Georgia a strong reputation for a crypto-friendly country.

The government has positioned itself as open to blockchain businesses and digital assets with a developing regulatory framework. These factors create an affordable and emerging market that is ideal for early-stage expansion, with room for growth as regulations evolve.

Which Countries Are Less Favourable for Crypto

As there are many crypto-friendly hubs, several countries do not welcome digital assets and impose hefty penalties, high taxes, or even outright bans on dealing with cryptocurrencies.

Therefore, operating in such jurisdictions with a hostile environment makes growth impossible. It creates compliance risks, banking barriers, and client acquisition limitations that render launching a cryptocurrency business not feasible. Some of these countries include:

• China: Ban on crypto trading and mining, with strict enforcement.
• India: Heavy taxation and regulatory uncertainty on crypto use.
• Egypt: Regulatory restrictions on using crypto for security reasons.

What Countries Have No Taxes on Crypto?

In some countries, cryptocurrency gains and earnings from exchanges are not subject to taxation. This gives companies a significant advantage to expand and grow their business overseas. These countries include:

• El Salvador: BTC is legal tender and exempt from capital gains tax.
• UAE: No personal income tax or capital gains tax on cryptocurrency.
• Bahamas: No income tax, capital gains tax, or inheritance tax.
• Cayman Islands: No taxes on income, corporate, or capital gains.
• British Virgin Islands: No tax on capital gains or crypto income.

Honorary mentions — some countries offer special exemptions or advantages for crypto ventures, these include:

• Germany/Portugal: cryptocurrency gains are tax-free if assets are held for more than one year.
• Singapore: No capital gains tax, but income from trading or mining is taxable.
• Georgia: zero tax on cryptocurrency gains for individuals, with low rates for corporate gains.

Launch Your Crypto Business with B2BROKER

Choosing the right jurisdiction accelerates your licensing process, reduces costs, and strengthens your client acquisition strategy. This way, brokers and exchanges can enter and expand into new markets more seamlessly.

With B2BROKER, you get more than regulatory guidance. You can access a comprehensive suite of FinTech solutions designed to scale your business with liquidity aggregation, access to 10 asset classes, multi-market reach, and a fully-fledged back office to oversee your activities.

Align your compliance, tech stack, and global reach with B2BROKER and explore a fully integrated ecosystem that all brokerages need.