How to choose a jurisdiction for a crypto project step by step

Nikita Veremeev

14.12.2025 | 6 min read

Updated: 14.12.2025

I often ask clients the question: are you ready to build capitalization and a brand on a jurisdiction that investors and banks have only heard about in news reports of investigations? If the answer is “probably not”, then the approach of “quickly and cheaply registering a company where they issue any crypto license” no longer works.

In this guide I examine how a founder and CFO can step-by-step approach choosing a jurisdiction for a crypto business in order to take into account:

• requirements for regulation of cryptocurrencies and digital assets;
• sanction risks of the crypto project and founders’ background;
• access to banking and payment providers;
• tax model and operating costs;
• future token listing and investor expectations.

I suggest you read the material to the end, because this is not a review of “countries on the map”, but a practical route: from strategic criteria to a launch checklist taking into account the experience of COREDO in the EU, Asia and friendly offshore jurisdictions.

Choosing a jurisdiction for a crypto business

Step 1: Choosing the jurisdiction for a crypto business determines the project’s legal status, its tax burden and access to banking infrastructure, so it is important to approach this stage systematically and rely on key assessment criteria. First of all, it is worth understanding which countries can really be considered crypto-friendly jurisdictions, how mature their regulatory framework is and how exactly the regulation of cryptocurrencies is built.

Crypto-friendly jurisdictions

The first filter when choosing is the maturity of the legal environment. Crypto-friendly jurisdictions today are not only low taxes, but also predictable regulation of cryptocurrencies and digital assets, clear licenses for VASP (Virtual Asset Service Provider) and a practiced regulator approach.

In the EU this framework is MiCA: unified rules for token issuers, wallet providers, exchanges and other VASPs, with an emphasis on crypto investor protection and transparency. In Singapore a similar role is played by the Payment Services Act and MAS’s approach to FinTech and crypto licenses, and in Dubai — the VARA regime with a focus on Web3 and tokenized assets. These regimes give business the main thing: a clear legal framework for tokens and blockchain products.

In practice at COREDO we start by assessing three aspects of the regulatory environment:

• whether there is a separate regime for VASP and tokens;
• how stable digital asset regulation has been over the last 3–5 years (without sharp bans and moratoria);
• whether the real practice of the financial regulator is clear: timelines, documentation requirements, degree of “business orientation”.

Jurisdictions with an immature framework often look attractive in terms of cost, but create problems when scaling and trying to enter the EU or major Asian exchanges.

Taxes for crypto business and ROI in low-tax zones

The second layer is taxes for the crypto business and the expected ROI from the structure. A formal zero tax rarely means maximum benefit: investors and banks carefully look at how much the model matches the real geography of teams, users and flows.

In practice, structuring part of R&D in the EU with access to intellectual property benefits sometimes gives a higher ROI from choosing a low-tax crypto jurisdiction than a “pure” offshore that later slows down listings and banking relationships.

VASP license and AML in crypto

The third basic criterion: the VASP regime and requirements for AML compliance in crypto. Today, for exchanges, custodians, brokers and even some DeFi projects, the road to major banks and exchanges is effectively closed without a built AML/KYC model.

Ignoring these aspects at the start results in blocks, refusals to open accounts and the need for urgent redomiciliation. That is why at COREDO we build the AML architecture into the project from the start, not “at licensing”.

Summary table of criteria

Best jurisdictions for a crypto company

Step 2: best jurisdictions for crypto to register a crypto company: it is a choice not only of country but also of regulatory model, level of investor protection, tax burden and licensing requirements. Below we will review the best jurisdictions for registering a crypto business in the EU, compare types of crypto licenses and the approximate entry cost so you can choose the optimal option for your project format and budget.

Best jurisdictions for a crypto license in the EU

A pool of countries is currently forming in the EU that combine a clear crypto license, a VASP regime and an acceptable cost of crypto registration in the EU. In practice COREDO most often works with the following options:

• Estonia – fast and digital process, clear capital and office requirements, regulator experience with VASP. For many projects this is the basic entry point to the EU with an emphasis on transparent AML for crypto companies.
• Lithuania, one of the most affordable VASP jurisdictions in the EU in terms of cost, while the regulator is gradually tightening requirements and improving its reputation.
• Cyprus and Slovakia are interesting for structures with a more complex group of companies, combining a financial and technological profile.

For entrepreneurs the key question is not only “where is it cheaper”, but also which countries investors recognize as the best jurisdictions for registering a crypto business in the EU from the perspective of future listing and access to institutional investors.

Crypto license in Asia: costs and timelines

Asia remains one of the most attractive directions for crypto and Web3 due to the combination of markets, infrastructure and regulatory flexibility. The most frequent request to the COREDO team is a comparison of Singapore and Dubai in terms of crypto licensing EU/Asia, timelines and the subsequent business life.

• Singapore: strong brand, MAS as a strict but predictable regulator, developed startup blockchain infrastructure, access to funds and qualified personnel. Licensing costs and capital requirements are higher than in most EU countries, and timelines can stretch to several months. Still, it is a jurisdiction favored by institutional investors.
• UAE (including Dubai): truly low or zero taxation of crypto income, a rapidly developing VARA regime, focus on Web3 projects and tokenization. In several free zones a flexible FinTech crypto license is combined with acceptable substance requirements.

Tax incentives and crypto accounts in Africa and offshore jurisdictions

A separate block — offshore jurisdictions and some African jurisdictions that offer pronounced tax incentives for crypto projects in offshore jurisdictions and flexibility of corporate law. A typical example is the Cayman Islands or certain Caribbean jurisdictions.

Their strengths:

• flexible corporate and fund structures;
• possibility to issue tokens and funds;
• comfortable legal protection of property and assets.

Top 5 jurisdictions

Figures are given as guidelines. For real projects COREDO always prepares a separate budget taking into account the structure, license and operating model.

Plan for registering a crypto company and obtaining a license

Step 3: The step-by-step plan for registering a crypto company and obtaining a crypto license begins with a key decision — choosing the country where the business will legally operate and grow. At this stage it is important not just to pick a “convenient” spot on the map, but to build a strategy: from analyzing requirements and tax burden to the final submission of documents in the chosen jurisdiction.

Choosing a jurisdiction: step by step

To prevent the step-by-step selection of a crypto jurisdiction from becoming guesswork, I suggest using a sequential algorithm that the COREDO team has honed in dozens of projects:

1. Strategic goal: where you expect to have customers, the team, investors and exchanges in 3–5 years.
2. risk assessment: sanctions, founders’ citizenship and residency, industry, sources of funds.
3. Functional division: where it makes sense to keep IP, where the operational center should be, and where the fund-holding structure should be.
4. Comparison with available crypto-friendly jurisdictions and their VASP regimes.
5. Financial calculation: taxes, compliance, a showcase for investors and banks.
6. Choosing and securing the target jurisdiction, legal form, and licenses.

This approach helps avoid a situation where, a year later, you have to “save” the project by re-domiciling and a painful migration of infrastructure.

VASP registration in Europe, AML and KYC

For Europe, a typical step-by-step plan for VASP registration looks like this:

• Assessment of founders’ background and sanctions.
  COREDO initially conducts a sanctions and reputational screening: we check citizenship, residency, ties to sensitive jurisdictions, sources of capital. This allows us to choose in advance a country where the risk of refusal is minimal and to properly build communication with the regulator.
• Choice of structure: DAO, Web3 structure, traditional legal entity.
  If the project is built around a DAO, it is important to correctly formalize the DAO’s legal structure for the crypto project: often this is a combination of a foundation, an operating company, and agreements between participants. For traditional exchanges and brokers a VASP company with transparent participants is sufficient.
• Preparation of whitepaper legal design.
  Legal analysis of tokenomics, token functions, and investors’ rights. Here COREDO builds the token’s legal framework: we determine whether the token is a utility token, where elements of a security emerge, and how this affects token listing on exchanges and reporting.
• Company registration.
  The stage at which directors, shareholders, the charter, corporate governance and decisions on confidentiality of beneficiary data are chosen, taking into account the requirements of the specific country.
• Obtaining a VASP license.
  Preparation of the document package, policies and procedures, business plan, and financial model. In the EU the emphasis is placed on detailing services, IT architecture and AML/KYC processes.
• Integration of crypto AML compliance.
  Setting up KYC processes, transaction monitoring, sanctions filters, and investigation procedures. For banks and exchanges the presence of such a system becomes a trust factor, and for investors a maturity criterion.
• Testing access to payment providers and banks.
  In COREDO projects this step runs in parallel with licensing: we pre-test payment providers, access to fiat-crypto conversion, account opening and integration with selected exchanges.

How to open a bank account for a crypto company

One common client question: how to open a bank account for a crypto company if the profile is VASP. Here the key role is played not so much by the country as by the combination of:

• the reputation of the jurisdiction;
• the quality of AML/KYC;
• the transparency of the corporate structure.

The choice of jurisdiction also affects token listing: many major exchanges prefer projects from countries with predictable regulation and clear legal qualification of the token. For several COREDO clients the optimal route looked like this: IP and token issuer in one European country, the operational VASP in another, and the token-holding fund in a trusted offshore. This approach reduced risks and simplified communication with exchanges.

Risks in choosing a jurisdiction for a crypto project

Step 4: Risks and how to avoid them when choosing a jurisdiction for a crypto project — this is not about formalities, but about the project’s survival under sanctions, regulatory uncertainty and cross-border requirements for founders. Choosing the right country of incorporation and taking into account the citizenship of key persons makes it possible to minimize sanction risks in advance and avoid account freezes, bank rejections and restrictions for users.

Sanctions risks to a crypto project due to founders’ citizenship

Sanctions risks for a crypto project are a separate area that entrepreneurs often underestimate. Regulators, banks and exchanges look not only at the country of registration, but also at:

• the citizenship and residency of the founders;
• the country of origin of the capital;
• key markets and partners.

Risks of a jurisdiction without AML compliance

Choosing a country where AML requirements can be formally ignored provides short-term savings but creates long-term limitations:

• major exchanges do not accept such projects without extensive legal work;
• banks either refuse entirely or require complex structural solutions;
• there may be fines and bans on operations in the EU and in several Asian countries.

Long-term consequences for investors

Institutional investors, funds and large private participants view jurisdiction as an indicator of risk management maturity. The reputation of a crypto jurisdiction directly affects:

• investor entry terms;
• project valuation;
• the prospects for subsequent rounds and token IPO/listing.

Answers to the target audience’s questions: case studies

In this section you will find answers to the key questions of the target audience about how choosing a low-tax jurisdiction for crypto assets works in practice: from ROI calculations to legal and operational nuances. Based on practical case studies and recommendations, we will analyze when changing jurisdiction truly pays off and which pitfalls are often ignored at the planning stage.

ROI of a low-tax jurisdiction for crypto

• the cost of obtaining and maintaining a license;
• substance-related expenses (office, director, staff);
• the discount investors may apply because of the jurisdiction;
• the effect on valuation multiples.

Does a jurisdiction’s reputation affect token listing?

Yes, directly. Exchanges and investors assess:

• the stability and transparency of regulation;
• the presence of a clear regime for tokens and VASPs;
• the regulator’s willingness to cooperate with international authorities.

How to integrate AML/KYC into a crypto business?

AML/KYC integration should not be done just to tick a box, but as part of business logic. In practice, COREDO builds:

• a risk-based approach to customers;
• combining on-chain analytics with traditional KYC procedures;
• role separation between the product and compliance teams;
• processes for rapid response to incidents and regulator requests.

Crypto project launch checklist

Ниже: сжатый чек‑лист, который команда COREDO использует как основу для планирования проекта с учетом сроков и ответственных:

На практике COREDO подключает к этому плану дополнительные блоки по защите IP, конфиденциальности инвесторов и структурированию фондов, но даже этот базовый список помогает избежать большинства критических ошибок.

Key takeaways and steps

• The jurisdiction of a crypto project is not a mere registration formality but a platform for growth, attracting investment, and asset protection.
• Today’s priority: jurisdictions with mature regulation (EU, Singapore, UAE) that provide a balance between taxes, compliance, and access to infrastructure.
• registering a crypto company without a well-designed AML/KYC and VASP framework creates short-term savings and long-term constraints.
• A structure that accounts for DAOs, funds, and IP structures allows tax optimization and increases resilience to regulatory changes.
• Banks, exchanges, and investors look not only at the country of registration but also at the quality of risk management processes.

If you are at the stage of discussing with partners “where to register the company and obtain a crypto license”, it makes sense to involve experts at this point. The COREDO team helps to go through all stages: from the strategic choice of jurisdiction and structure design to licensing, AML setup, and account opening. This significantly reduces time-to-market and lowers the cost of potential mistakes.