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 plunge, the collapse of Terra-Luna and FTX, increased regulatory pressures, and global bans.

In 2023, the industry showed signs of recovery, though, as Bitcoin and other major cryptocurrencies began to rebound from their lows. Throughout 2023, market sentiment improved as investors regained confidence. The total cryptocurrency market capitalization surged from below $1 trillion in mid-2022 to over $1.5 trillion by December 2023.

Currently, the crypto industry is undergoing rapid evolution, with pivotal events driving unprecedented growth. These include the key events of 2024, including the SEC’s approval of Bitcoin ETFs, the Bitcoin halving, and Trump’s re-election rally, which triggered substantial surges in platform activity. According to Sumsub’s latest crypto report, State of the Crypto Industry, these events have led to a 20% spike in client traffic.

In 2025, as the cryptocurrency industry continues to grow, certain countries have emerged as global leaders in fostering crypto-friendly environments. These nations 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. Switzerland

Switzerland, particularly the city of Zug—known 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

2. 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.

3. United Arab Emirates (UAE)

The UAE, particularly Dubai and Abu Dhabi, has positioned itself as a global crypto hub. 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 foster crypto education. With zero personal income tax and business-friendly regulations, the UAE is a top choice for crypto entrepreneurs.

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.

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.

6. United States

Despite regulatory challenges, 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.