CHOOSING A JURISDICTION FOR A CRYPTO BUSINESS: OVERVIEW OF REGULATORY FRAMEWORKS

Over the past decade, the digital assets market has evolved from a virtually unregulated sector into  a fully-fledged segment of the financial market. Today, cryptocurrency exchanges, custodial services, investment platforms and other blockchain projects must take into account not only the technological and commercial aspects of their operations, but also the requirements of regulators, banks, investors and other participants in the financial infrastructure.

Consequently, the choice of jurisdiction becomes a crucial decision when establishing and developing a crypto business. The country chosen determines access to banking services, the ability to attract investment and the prospects for entering target markets. Therefore, the choice of jurisdiction must be made taking into account the project’s business model, its target audience, geographical scope of operations and long-term development plans.

This alert examines some of the popular jurisdictions for operating a crypto business: the United Arab Emirates, Hong Kong, Singapore, the European Union (MiCA regime), the British Virgin Islands, and Panama.

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