Top Destinations for your crypto project outside of the EU

In 2024 the uniform EU market rules for crypto-assets, known as Markets in Crypto-Assets Regulation (MiCA) came into effect. MICA applies to the issuance, trading, and servicing of crypto-assets within the European Union. It has marked a dramatic shift in regulatory approach of the EU, bringing strict compliance requirements, which have prompted overreaching consequences for the crypto industry, including the de-listing of common stablecoins from European exchanges. This has lead to a number of new projects in the crypto industry to re-consider their initial plans to set their operations in the EU and move to a more convenient jurisdiction. 

The team of Prometheus Partners Agency has compiled an overview of the go-to destinations for new crypto ventures in 2025. Each jurisdiction will be analysed on their policy approach to crypto, licensing regime and tax treatment of crypto projects.

British Virgin Islands (BVI)

• Crypto Policy: BVI’s government remains crypto-friendly with the Virtual Asset Service Providers Act (2022), which requires VASP registration with the Financial Services Commission (FSC) and AML/CTF compliance. Overall, BVI’s regulatory regime and global business hub reputation make it a feasible jurisdiction for a new crypto venture.
• Licensing Regime: During VASP registration, a company must submit ownership details, business plans, and AML/CTF measures. A typical license application may take up to 6 months. Fees, levied by the FSC, hinge on the license type and can be around US$10,000.
• Tax Treatment: BVI offers 0% corporate tax and 0% capital gains tax for companies incorporated in the territory, including crypto ventures.

Cayman Islands

• Crypto Policy: The Cayman Islands created a comprehensive crypto regulation in 2020 under the Virtual Asset (Service Providers) Act, overseen by the Cayman Islands Monetary Authority (CIMA). By late 2023, 19 VASPs were registered, spanning trading platforms, custodial services, and brokerages—evidence of strong support from CIMA.
• Licensing Regime: CIMA’s clear process offers tailored licenses (e.g., exchanges, token issuance). Applicants must demonstrate robust compliance and financial stability. The initial application fee ranges from US$1,500 to US$15,000.
• Tax Treatment: With 0% corporate and capital gains taxes across all sectors, the Cayman Islands remains a prime destination for tax-conscious crypto ventures.

Mauritius

• Crypto Policy: Mauritius, an Indian Ocean nation, has positioned itself as a progressive financial center via the Virtual Asset and Initial Token Offering Services Act (2021). The Financial Services Commission (FSC) enforces compliance with international standards to attract crypto businesses and launched a regulatory sandbox in 2021 to foster fintech innovation.
• Licensing Regime: Under the FSC’s licensing, applicants must meet stringent requirements like financial audits, AML/CTF protocols, and strong governance. Fees range from US$1,000 to US$3,000, with minimal capital depending on activities.
• Tax Treatment: Mauritius imposes about 15% corporate tax and 5% VAT—competitive with EU levels (e.g., Lithuania’s 16%).

Seychelles

• Crypto Policy: Seychelles introduced the Virtual Asset Service Providers Act in 2024, offering structured oversight and balancing regulatory enforcement with innovation. It signals a shift toward transparency compared to past permissive approaches.
• Licensing Regime: Licenses are categorized by service type (e.g., exchanges, wallets), focusing on operational transparency and compliance. Applicants need US$25,000–US$100,000 in capital, plus around US$5,500 in fees.
• Tax Treatment: Seychelles offers 0% corporate and capital gains tax for International Business Companies (IBCs), including crypto projects, making it highly tax-efficient.

United Arab Emirates (UAE)

• Crypto Policy: The UAE advances its crypto hub status with specialized regulators like Dubai’s Virtual Assets Regulatory Authority (VARA) and Abu Dhabi’s Global Market (ADGM). They provide frameworks supporting innovation while upholding AML/CTF standards. Multiple free zones add welcoming policies for the crypto sector.
• Licensing Regime: VARA and ADGM administer clear licensing for exchanges, custody, and trading, requiring robust cybersecurity, financial reporting, and investor protections. Fees vary by activity, and regulators may demand share capital of about US$270,000.
• Tax Treatment: The UAE offers 0% corporate tax in free zones, making it attractive for crypto ventures.

Singapore

• Crypto Policy: Singapore has become a major crypto hub, encouraging digital asset innovation under the Payment Services Act (2019). Overseen by the Monetary Authority of Singapore (MAS), it ensures AML/CTF compliance for VASPs offering digital payment token services.
• Licensing Regime: The MAS runs a rigorous process, issuing Digital Payment Token Service Licenses. Applicants must meet strict governance, risk management, and AML/CTF requirements. Depending on the license, a deposit up to US$190,000 may be required.
• Tax Treatment: Singapore’s 17% corporate tax and 9% GST remain competitive in the region.

Hong Kong

• Crypto Policy: Since mid-2023, Hong Kong has strengthened its role as an Asian crypto hub through the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022, introducing a new VASP licensing regime. Overseen by the Securities and Futures Commission (SFC), licensed platforms may serve retail investors, balancing growth with investor safeguards.
• Licensing Regime: The SFC provides comprehensive oversight, issuing the Virtual Asset Trading Platform License. Applicants must have robust AML/CTF protocols, investor protections, and strong operational standards.
• Tax Treatment: Hong Kong maintains a 16.5% corporate tax and 0% capital gains, supporting crypto businesses seeking a regulated yet cost-efficient environment.

Contact us at support@prometheus.partners for a free consultation.