The Top 10 Crypto-Friendly Countries (2025)

The cryptocurrency industry has faced significant turbulence over the past few years. It went through extreme volatility and major collapses, including the 2021-2022 crypto winter and Bitcoin price swings, the collapse of Terra-Luna and FTX, increased regulatory pressures, global bans, and proposed restrictions on investment. The industry has also been widely targeted by criminals.

In spite of these challenges, the it has achieved significant growth. In mid-2022, the total cryptocurrency market capitalization stood at under $1 trillion, and by September 2025, it reached $3.96 trillion.

Currently, the crypto industry is undergoing rapid evolution, with pivotal events driving unprecedented growth. These include key recent events—perhaps most significantly, US President Donald Trump’s governmental and personal support for cryptocurrency—as well as various pro-crypto regulatory changes. A growing number of institutional investors are beginning to trust crypto due to the maturing ecosystem, improved market resilience, and greater regulatory clarity from multiple jurisdictions, including the US, the EU’s MiCA and TFR frameworks, as well as pro-crypto initiatives across Asia and the Middle East. 

According to Sumsub’s crypto report, State of the Crypto Industry, these market-moving events have led to a 20% spike in client traffic.

In late 2025, as the cryptocurrency industry continues to grow, certain countries have emerged as global leaders in fostering crypto-friendly environments. These jurisdictions offer regulatory clarity, tax incentives, and supportive infrastructure, making them attractive hubs for blockchain businesses, investors, and enthusiasts. Here are this year’s top 10 most crypto-friendly countries.

This list is based solely on Sumsub’s own research, analysis, and subjective judgment.

1. United Arab Emirates (UAE)

The UAE, particularly Dubai and Abu Dhabi, has positioned itself as a global crypto hub. The country received over $30 billion in crypto transactions between July 2023 and June 2024, while the Abu Dhabi-based MGX invested $2 billion in Binance in March 2025. The Dubai Virtual Asset Regulatory Authority (VARA) provides a well-defined framework for digital assets, and the country has launched several crypto-friendly free zones, such as the Dubai Multi Commodities Centre (DMCC). Moreover, Khalifa University offers blockchain courses and events like Future Blockchain Summit that foster crypto education. With zero personal income tax and business-friendly regulations, the UAE is a top choice for crypto entrepreneurs.

Suggested read: Forget Silicon Valley—The Future of Regulated Crypto Lives in the Middle East

2. Switzerland

Switzerland, particularly the city of Zug—known colloquially as “Crypto Valley“—is a global leader in blockchain innovation. The country has clear regulations for cryptocurrencies, with the Swiss Financial Market Supervisory Authority (FINMA) providing guidance for Initial Coin Offerings (ICOs) and crypto businesses. Switzerland also offers favorable tax policies for crypto investors, making it a top destination for blockchain projects.

Suggested read: Switzerland Crypto Regulation Guide

3. Singapore

Singapore is known for its progressive stance on cryptocurrencies. The Monetary Authority of Singapore (MAS) regulates digital assets through the Payment Services Act, ensuring clarity and security for businesses and investors. Universities like the National University of Singapore (NUS) and Singapore Management University (SMU) offer blockchain programs, and events like Blockchain Week enhance industry knowledge. The country also has low capital gains tax on crypto transactions, making it an attractive destination for blockchain startups.

4. Hong Kong

Hong Kong has embraced the crypto industry by establishing clear regulatory frameworks for exchanges and digital asset businesses. The Securities and Futures Commission (SFC) has implemented guidelines for virtual asset trading platforms, with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) ensuring regulatory transparency, compliance expectations for VASPs, as well as investor protection. Project Ensemble Sandbox explores asset tokenization and government funds encourage Web3 entrepreneurship. Overall, Hong Kong’s financial infrastructure and access to global markets make it a prime location for crypto enterprises. The newly introduced LEAP framework is intended to clarify and streamline regulation for stablecoins and tokenized assets with the goal of boosting investment and the tokenization of assets like ETFs, gold, and renewable energy infrastructure.

Suggested read: Regulatory Sandboxes—a Bridge Between Regulators and Business Innovation

5. Canada

Canada is one of the earliest adopters of cryptocurrency regulations, with clear guidelines established by the Canadian Securities Administrators (CSA). The country has a robust blockchain ecosystem and allows Bitcoin exchange-traded funds (ETFs). Banks like Scotiabank and RBC provide services to crypto businesses. Additionally, Canada’s tax policies are favorable for long-term crypto investors. The country is expected to maintain its position as a crypto leader in the coming year due to several key factors: the government has implemented sensible regulations, major financial institutions and technology companies are entering the market, and new, more accessible products are being offered to crypto investors.

6. United States

Thanks to historic regulatory advances and clarity, as well as political support, the US remains a major player in the crypto space. The country is home to many blockchain startups, exchanges, and institutional investors. Regulatory agencies like the SEC and CFTC oversee the industry, and states like Wyoming and Texas have introduced pro-crypto legislation. Besides, banks and fintech firms—for instance, Fidelity and PayPal—integrate crypto services. The presence of major financial institutions and venture capital makes the US a leading destination for crypto innovation.

Suggested read: AML Laws and Regulations in the US—What Has Changed?

7. The Cayman Islands

The Cayman Islands is a well-known financial hub with a strong legal framework for crypto businesses. The Virtual Asset (Service Providers) Act provides clear licensing rules and guidelines for AML/CFT compliance. The jurisdiction does not impose direct taxes on cryptocurrency transactions, and it provides regulatory clarity through the VASP framework. In the Cayman Islands, banking, IT, and telecom infrastructure support VASP operations. Many crypto firms and hedge funds choose the Cayman Islands for its tax benefits and business-friendly environment.

8. Bermuda

Bermuda has positioned itself as a crypto-friendly jurisdiction with its Digital Asset Business Act (DABA). The Bermuda Monetary Authority (BMA) provides clear regulatory guidance for blockchain companies, and the country has embraced digital asset businesses with favorable tax policies. Bermuda also collaborates with fintech firms to foster crypto adoption. Moreover, Bermuda College offers blockchain courses.

9. Australia

Australia has developed a comprehensive legal framework for cryptocurrencies, with the Australian Securities and Investments Commission (ASIC) regulating digital asset businesses. The government partners with blockchain firms to ensure compliance while fostering growth and also offers a regulatory sandbox for crypto firms. Additionally, Australia has progressive tax policies that benefit crypto traders and investors.

10. Panama

Panama has become increasingly crypto-friendly. While regulatory clarity is still developing, progress is already evident in digital asset laws and AML compliance requirements. The country does not impose capital gains tax on crypto transactions, making it an attractive location for investors and businesses. Panama’s strategic location and business-friendly policies contribute to its growing reputation in the crypto space.

How to choose the most crypto-friendly country for your business in 2025?

When choosing a crypto-friendly country in 2025, you should consider:

• Regulatory framework. Does the country have existing regulations that deal with cryptocurrency? Is there new potential legislation that could affect crypto?
• Tax regime. Does the country offer tax incentives for crypto assets? For example, Portugal’s tax-exemption scheme.
• Government support. Are there programs like the European Blockchain Sandbox that encourage crypto investment and innovation?
• Financial infrastructure. Does the country have key infrastructure, such as crypto exchanges? Is cryptocurrency accepted by major financial institutions?
• Political stability. How politically stable is the country? Political instability can affect all types of financial assets by hampering growth as well as introducing uncertainty about the regulatory environment.