Experts have identified which countries, besides the United Arab Emirates, are creating favorable conditions for business development in the cryptocurrency and blockchain sectors
The United Arab Emirates is one of the world’s largest crypto hubs, where the government is creating favorable conditions for the development of cryptocurrency and blockchain projects. However, Iran’s ongoing missile and drone attacks on Gulf countries are increasing pressure on the region’s economy, and instability is already affecting various sectors.
The crypto industry has not been spared these challenges. Some industry participants have left Dubai, and major annual events held in the region - such as the Token2049 and Gateway crypto conferences organized by the TON team, are being relocated or canceled.
Switzerland
If you’re looking for maximum legal certainty, our experts believe you should consider Switzerland and Zug in particular. According to them, the Ethereum Foundation, Cardano, and Polkadot “are based here not because of the beautiful mountains,” but because the Swiss non-profit foundation structure is one of the best legal forms for a protocol: clear regulation, political stability, and the FINMA regulator, which prefers to negotiate with the industry in advance rather than litigate after the fact.
Zug has a zero capital gains tax for individuals and a corporate tax rate starting at 11.9%, the expert says. He noted that, according to the latest available data as of mid-2025, the region is home to 1,749 crypto companies, 17 “unicorns,” and the ecosystem has been growing by nearly 19% annually over the past five years.
“A less obvious downside is the wealth tax. Every year, you pay a percentage of the market value of all your assets, including cryptocurrency that you haven’t sold. In Zug, this tax is one of the lowest in the country, at a maximum of about 0.17%. In other cantons, it reaches up to 1%. For a ‘whale’ with $50 million in Bitcoin, that amounts to several tens of thousands of francs a year simply for holding the assets,” our expert warned.
Portugal
If you’re looking for “Europe with minimal taxes,” then Portugal is the place to go. Among the advantages: zero tax on holdings of over one year, a remote work visa, and access to the entire European market through the unified MiCA regulation.
Just as Portugal is attractive due to its low taxes and the opportunity to obtain a MiCA license which allows you to operate in all EU countries Switzerland is for those focused on the European market; however, taxes there are significantly higher than in Asian cities and even more so in Georgia, says our expert.
Georgia
Georgia has fairly crypto-friendly legislation; it has not imposed any bans on the trading of digital assets, and there are many cryptocurrency exchanges and crypto ATMs operating in the country. The country does not require complex licensing for most operations; since 2023, Georgia has had a local equivalent of the European VASP regulation, under which crypto wallet and exchange providers must obtain a license, but this is a fairly simple process.
Resident individuals benefit from a preferential tax regime: income from cryptocurrency trading is treated as foreign income and is fully exempt from taxation, and there is no VAT on crypto transactions, says our expert. He also noted that a 15% corporate tax applies to companies, and there are free industrial zones in Tbilisi, Kutaisi, and Poti, where attractive conditions exist for mining and the operation of crypto exchanges.
“The National Bank of Georgia has taken a more observant than restrictive stance, which has created a predictable and relatively free business environment. Low barriers to entry and the absence of direct bans allow us to describe Georgian legislation as crypto-friendly,” our expert added.
Georgia is an undeservedly underrated option. Back in 2019, the Ministry of Finance ruled that cryptocurrency has no geographical ties, meaning income from its sale is not considered a Georgian source and is not subject to income tax, our expert explained.
But he pointed out an important detail that is often overlooked: this applies only to tax residents of Georgia—you must either spend at least 183 days a year there or obtain residency through the program for high-net-worth individuals; simply moving there is not enough.
“A residence permit is easy to obtain, and the cost of living is ridiculously low. The downside is that there is virtually no proper regulatory infrastructure for business, and banks can be capricious,” our expert added.
Hong Kong
Those who care about Asia must choose between two completely different narratives. Hong Kong is the only place where you can legally work with mainland Chinese capital, and it’s not “just another Asian hub,” but a specific and irreplaceable jurisdiction: 12 trading platforms licensed by the local regulator, the SFC, and zero capital gains tax for private investors.
“The bar is honestly high: licensing takes six to nine months, you need two responsible licensed employees and a physical office—it’s not something you can ‘move to over the weekend,’” says our expert
Singapore
Another option is Singapore. But it’s no longer the crypto hub that was easy to enter, as it was a couple of years ago. The country has now become much more cautious and selective; obtaining the mandatory DTSP (Digital Token Service Provider) license from the local regulator, the Monetary Authority of Singapore (MAS), is extremely difficult, and without it, you cannot operate from Singapore to the external market.
Singapore is a story of how a regulator changed the entire landscape with a single decision. As of June 30, 2025, the MAS shut down the “legal entity here, clients everywhere” model: now a separate license is required, which the MAS itself promised to issue “in exceptional cases,” our expert explained. According to his information, as of January 2026, 36 companies had passed through this filter—the bar is high.
“For businesses with a real local presence, Singapore remains an excellent jurisdiction, but for everyone else, the door has closed, and some exchanges are already relocating,” the expert said.
El Salvador
El Salvador offers the lowest regulatory entry costs on the entire list: 0% tax, and a license from the local regulator costs a few thousand dollars plus an annual renewal fee; exact rates should be confirmed directly with the CNAD, as they are periodically revised. According to our expert, under pressure from the IMF, the authorities are distancing themselves slightly from cryptocurrencies, but tax incentives for businesses remain in place. The infrastructure is that of a developing country, but this must be accepted as a given, the expert noted.
The Cayman Islands
The Cayman Islands are in a league of their own—but they’re not a place to live, rather a jurisdiction for infrastructure, says our expert. He explained that if you need a fund or a decentralized organization with zero taxes and globally recognized regulation, this is the place to go—but the conditions are as follows: an entry fee of $40,000–$120,000, a high cost of living due to 22–26% duties on all imports, and no citizenship available at all.