Why are companies seeking an alternative to MiCA?
MiCA restrictions and risks for crypto-companies
- Significant tightening of AML/KYC procedures and mandatory registration of all market participants.
- Increase in compliance costs: implementing internal control procedures and regular monitoring of transactions can increase operating expenses by 20–30%.
- Challenges in opening accounts: EU banks are reluctant to work with crypto-companies, especially in the early stages.
- Restrictions on issuing and circulating stablecoins, reserve requirements, and reserve confirmations.
- Risks of transaction blocking and asset freezing with the slightest suspicion of non-compliance with AMLD5 or FATF recommendations.
Criteria for choosing an alternative jurisdiction
Choosing a country for registering a crypto-company: it’s a balance between legality, flexibility, and speed of launch. The most in-demand criteria are:
- Regulation transparency and predictability: clear rules and understandable licensing procedures.
- AML/KYC flexibility: the ability to implement modern customer identification solutions without excessive bureaucracy.
- Speed of registration and account opening: minimal application review time and no industry discrimination.
- Scalability opportunities: access to international markets, investor protection, support for innovations (DeFi, NFT, CBDC).
- Interaction with regulators: openness to dialogue and willingness to consider the specifics of the crypto-business.
The COREDO team has implemented dozens of projects where these parameters determined market entry success.
Best countries to open a crypto-company in 2025
Europe: Switzerland, Portugal, Lithuania, Poland, Georgia
Switzerland remains a benchmark for transparency and technical support for blockchain projects. It operates under the principle of “technological neutrality,” and the FINMA regulator actively interacts with the industry. Licensing requires strict adherence to AML/KYC, but in return, companies gain access to a strong financial infrastructure and a DeFi-friendly environment. Opening accounts is challenging but achievable with a well-prepared corporate structure.
Portugal attracts with low tax burdens; until recently, cryptocurrency income was tax-free. Registering a crypto-company takes 1–2 weeks, licensing requirements are moderate, and banks are gradually opening up to working with digital assets. Special attention is paid to implementing KYC procedures and transaction monitoring.
Lithuania: a leader in registration speed and issuing licenses for crypto exchanges. Capital requirements and internal policies are quite strict, but the process is transparent and takes from 2 to 4 weeks. Interaction with the regulator takes place via an online portal, speeding up application processing.
Poland and Georgia offer a quick start for crypto startups. In Georgia, no separate license for crypto-activity is required, and the tax burden is minimal. Poland is gradually tightening rules but remains flexible for small teams and innovative projects.
Asia and Africa: Singapore, Hong Kong, UAE, Mauritius, South Africa
Singapore is one of the most attractive centers for crypto-business in Asia. Company registration requires a local director and address, but the process takes only a few days. Licensing is conducted through MAS (Monetary Authority of Singapore), and AML/KYC requirements meet international FATF standards. The introduction of CBDC and support for blockchain projects make Singapore an ideal platform for scaling.
Hong Kong is actively introducing new crypto regulation standards, including licensing exchanges and DeFi platforms. The “sandbox” principle operates here, allowing innovative products to be tested without the risk of sanctions.
UAE (Dubai, Abu Dhabi), a region with minimal tax burdens and flexible conditions for international projects. Licensing is possible through specialized zones (ADGM, DMCC), and local regulators support the introduction of new technologies.
Mauritius and South Africa are jurisdictions where licensing and AML requirements are moderate, and the tax burden is minimal. They are increasingly popular among projects focusing on Africa and the Middle East.
Latin America and Offshore: El Salvador, Panama, Seychelles
El Salvador, the first country to recognize Bitcoin as an official payment method. Company registration takes just days, no licensing required, and banks open accounts without additional checks. However, the lack of strict regulation poses risks to investor protection and long-term legality.
Panama and Seychelles – offshore jurisdictions with minimal reporting and licensing requirements. These are convenient places to launch DeFi and NFT projects, but one must consider restrictions in dealing with international banks and potential reputational risks.
Comparison of jurisdictions for crypto business
Table: Key parameters and requirements in top jurisdictions
| Jurisdiction | Licensing | AML/KYC | Taxes | Account Opening | Features |
|---|---|---|---|---|---|
| Switzerland | Yes | Strict | Moderate | Difficult | Transparency, DeFi-friendly |
| Portugal | Partial | Moderate | Low | Average | No crypto income tax |
| Lithuania | Yes | Strict | Average | Difficult | Fast registration |
| Georgia | No | Lenient | Low | Easy | No license, quick start |
| Singapore | Yes | Strict | Average | Difficult | CBDC adoption |
| El Salvador | No | Lenient | Low | Easy | Bitcoin legal tender |
Taxation features for crypto-companies in Asia and Africa
AML and Compliance for Crypto Businesses in Alternative Jurisdictions
International standards and local requirements
How to ensure compliance and protect investors
COREDO’s experience has shown that automating AML/KYC and integrating with international databases can reduce operational costs and increase transaction transparency. Implementing a risk-based approach to transaction monitoring and regular internal audits are key tools for protecting investors and minimizing account blocking risks.
Regulation of new crypto-products: Stablecoins, DeFi, NFT
Regulation features for stablecoins and tokens
CBDC and blockchain technology integration into business
Practical steps: how to choose and register a crypto-company outside the EU
Step-by-step instruction on registration and licensing
- Business model analysis: Determine target markets, products (DeFi, NFT, stablecoins), and transaction volumes.
- Choose jurisdiction: Evaluate licensing requirements, AML/KYC, tax burdens, and availability of banking services.
- Document collection: Founding documents, business plan, AML/KYC policies, beneficiary information.
- Application submission and interaction with the regulator: Use online portals (e.g., ACRA in Singapore), be prepared for interviews and providing additional information.
- Open corporate account: In some countries, the personal presence of the director or the use of a licensed agent’s services might be required.
- Implement compliance procedures: Appoint a compliance officer, integrate transaction monitoring systems.
Criteria for jurisdiction selection for scaling
- ROI: Evaluate the total costs for registration, licensing, and business maintenance.
- Risks: Analyze legal and reputational risks associated with the jurisdiction.
- Legality: Ensure international recognition of the license and the ability to work with major banks and payment systems.
- Investor protection: Verify deposit insurance mechanisms and dispute resolution options.
Risks and advantages of registering a crypto-company outside the EU
Main risks: legal, financial, reputational
Registering a crypto-company outside the EU may involve:
- Insufficient protection of investor rights and limited access to international judicial mechanisms.
- Risks of account blocking and service denial by banks.
- Reputational costs when operating in offshore jurisdictions.
Advantages: flexibility, speed, tax optimization
At the same time, alternative jurisdictions allow:
- Launching projects in 1–2 weeks with minimal costs.
- Using tax benefits and the absence of double taxation.
- Scaling business without restrictions on types of activities and geography.
Key conclusions and recommendations for entrepreneurs
- Alternative jurisdictions for crypto activities: it’s not only a way to bypass MiCA’s restrictions but also an opportunity to build a sustainable business model considering global trends.
- Best countries to open a crypto-company in 2025: Switzerland, Portugal, Lithuania, Singapore, UAE, and Georgia, each offering a unique balance between legality, flexibility, and tax optimization.
- Registering a crypto-company abroad requires a comprehensive approach: analyzing the business model, choosing jurisdiction, implementing compliance procedures, and continuous monitoring of legislative changes.
- To minimize risks and ensure long-term business legality, I recommend relying on the experience of professional consultants, integrating international AML/KYC standards, and building a transparent corporate structure.