In a world where crypto is gradually becoming part of everyday life, the businesses making that transition possible continue to operate under some of the strictest regulatory scrutiny in their jurisdictions of incorporation. In response, therefore, the market has seen booming demand for regulatory environments that offer clarity and reasonable rules without placing near-absurd constraints on businesses.
This has partly given rise to an ever-growing number of “top crypto-friendly countries” rankings, which now serve as a valuable benchmark for assessing jurisdictions that dominate industry discussions and are widely perceived as the most reliable options for crypto company formation. Popularity alone, however, is rarely a reliable measure and can sometimes be misleading. In practice, several well-known jurisdictions still fall short on clear regulation, long-term stability, and the conditions serious crypto businesses genuinely need to scale.
In this article, our legal advisors explore several highly praised crypto-friendly jurisdictions, whose popularity arguably exceeds the practical benefits, highlighting their legal and structural gaps that lie beneath the surface.
1. Switzerland
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Few jurisdictions have achieved the almost legendary reputation of Switzerland, sometimes seen as the gold standard for serious crypto businesses. Rather than attempting to outlaw digital assets or impose restrictive regulation, the country offers clear rules, attractive taxation, and robust crypto-friendly banking infrastructure, being home to the famous “Crypto Valley” and some of the world’s most prominent blockchain companies.
Despite such a powerful digital asset environment that carries a level of prestige few jurisdictions can match, starting a business in Switzerland comes with equally high expectations, making it one of the most demanding, expensive, and time-intensive digital asset hubs.
Why Switzerland is often overrated for starting a crypto business:
- Long Licensing Timelines. The approval from the Swiss Financial Market Supervisory Authority (FINMA) regulatory body can take 12 to 24 months, turning Switzerland into one of the slower routes to market for regulated crypto businesses.
- Expensive Setup. The overall cost of company formation and licensing can reach hundreds of thousands of Swiss francs and, depending on the complexity of the business, extend to CHF 1 million (~USD 1.23 million).
- Strict Local Substance. FINMA expects regulated crypto businesses to demonstrate genuine substance in Switzerland, also backed by qualified management and strong governance, custody, and risk controls.
- Not Startup-Friendly. The jurisdiction is designed for mature businesses prepared for substantial regulatory oversight, rather than crypto startups prioritizing speed, simplicity, and low compliance costs.
- No EU Passporting. As Switzerland is not a member state of the European Union (EU), a Swiss crypto license does not grant the right to passport services across the whole of Europe in accordance with the Markets in Crypto-Assets (MiCA) regulation.
Switzerland can be a strong choice for businesses willing to invest in long-term credibility, yet for newly launched companies focused on launching fast and keeping costs under control, the “crypto paradise” label can be misleading.
2. United Kingdom
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The United Kingdom remains a globally recognized financial hub, with London consistently positioned among the world’s leading startup ecosystems due to its mature financial infrastructure, active venture capital market, and broad range of incentives for scaling innovative companies, making a local crypto license particularly attractive.
Backed by the government’s ambition to transform the UK into a global crypto-asset technology hub, the country blends the credibility of its well-established regulator, the legal certainty of English common law, targeted incentives, and significant market potential, creating favorable conditions for businesses seeking sustainable growth.
Yet, despite its exceptionally strong startup ecosystem, ranked 2nd worldwide in the latest StartupBlink’s 2026 index report, the country is far from an easy jurisdiction to enter, with strict rules and increased regulatory scrutiny leaving many applications unsuccessful.
Why the United Kingdom is often overrated for starting a crypto business:
- High Rejection Rates. The UK Financial Conduct Authority (FCA) has been known for rejecting an overwhelming majority of nearly 90% (over 87% in 2023/24) of annual crypto registration applications due to inadequate fraud protection or weak money laundering controls. The combined application failure rate reportedly stayed at ~89% in 2024/2025.
- Still Evolving Regulation. While the UK’s comprehensive crypto regulatory framework is now moving toward implementation, the new regime will not take effect until October 25, 2027, with the authorization window opening on September 30, 2026, leaving founders to navigate a lengthy period of regulatory transition.
- Persistent Debanking Challenges. Crypto businesses in the UK continue to report significant difficulties securing and maintaining corporate bank accounts, with many banks showing little sign of easing their “anti-crypto stance” despite ongoing regulatory progress.
- High Compliance Demands. The FCA introduces compliance expectations comparable to those faced by mature financial institutions, significantly raising the standards businesses must meet to operate. Namely, the country applies exceptionally strict marketing rules, making the promotion of crypto-asset products and services considerably more difficult.
- No Access to the Single EU Market. Similarly to Switzerland, UK-regulated businesses receive no passporting rights across the European Union. Serving European customers is only possible after securing a CASP license in Lithuania, Estonia, Malta, Cyprus, or other EU member states.
The UK should generally be considered only by mature businesses with vast resources that have already established themselves elsewhere and now plan a regulated presence in the country from 2027 onward as part of their long-term growth strategy. However, for most businesses seeking an efficient path to the crypto market without a specific need to target UK customers, the country may simply demand too much time, capital, and regulatory effort for too little strategic return.
3. United States
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No crypto market is generating more hype right now than the United States. Home to Wall Street, Silicon Valley, and many of the world’s largest investment and digital asset firms, a presence in the market can act as a stamp of credibility, strengthening confidence among customers, partners, and investors worldwide. This promise, combined with unrivaled access to venture capital, a vast customer base, and growing political support for a less enforcement-driven regulatory approach, continues to attract ambitious entrepreneurs from across the crypto industry.
Yet, the prestige of the jurisdiction is matched by an equally demanding regulatory landscape. While the political climate has become noticeably more supportive for digital assets, regulatory fragmentation between federal and state levels remains costly to navigate, while major market-structure and banking reforms have yet to provide the certainty businesses are expecting.
Why the United States is often overrated for starting a crypto business:
- Decades of Uncertainty. Despite the positive momentum generated by President Donald Trump’s second administration, key elements of the new crypto regulatory framework, including implementation of the GENIUS Act and broader anti-debanking reforms, remain unfinished, leaving businesses still waiting for the regulatory certainty long promised to the industry.
- Complex Federal and State Regulations. Doing business in the US can mean complying with several regulatory regimes simultaneously. The result is a dual-compliance trap that can quickly drain resources and turn legal counsel into one of the largest items on the budget.
- Debanking Aspect. Although the situation is gradually improving as the issue attracts greater public scrutiny and a stronger response from key authorities such as the OCC, many crypto companies continue to face substantial difficulties in securing and maintaining stable banking relationships, despite the Trump administration’s efforts to address practices associated with “Operation Chokepoint 2.0.”
- High Taxes and Costs. Compliance, legal advice, licensing, and taxation make the US one of the world’s most expensive places to start and run a crypto business.
- Rising Barriers to Stablecoins. As the CLARITY Act comes into effect, stablecoin issuers are expected to meet increasingly demanding standards it will introduce.
Despite its enormous potential, the US remains a market hitherto reserved for major exchanges, payment institutions, stablecoin issuers, and other blockchain businesses with million-dollar revenues and the infrastructure to meet demanding compliance standards. In practice, however, the market is increasingly becoming a closed club for smaller firms unable to withstand the demands of multiple authorities at once.
