The fast development of technology in the last decade has helped countries all over the world to increase their economic welfare. One of the most prolific sectors which now relies on technology is the financial industry which has grown considerably and has evolved at a fast pace. It has also developed new branches among which financial technology (fintech) is by far the most sought by investors.
Nowadays, one of the most appreciated sectors of fintech is cryptocurrency which means using high-tech means for the creation of digital money also known as digital tokens. Moreover, enterprisers seeking to establish companies have shown a great interest in this type of business.
Even if it started developing at a fast pace, it will take a little bit longer for states to create laws which regulate the creation and use of cryptocurrencies, as digital money is considered a decentralized currency which means its circulation cannot be controlled by the financial authorities of a government. This is why many countries are currently trying to find solutions which provide investors, companies and their clients with a safe means for using cryptocurrencies.
Below, we will try to explain how one should choose the best country for setting up a cryptocurrency company.
Cryptocurrency-related regulations around the world
Asian and European countries are the most advanced in providing solutions for those interested in starting cryptocurrency businesses. Hong Kong and Singapore are representative for Asia, while in Europe, Switzerland, Ireland and the Netherlands are by far the most advanced from this point of view.
It is no surprise for Switzerland to be one of the first countries in Europe to offer an advantageous environment for entrepreneurs interested in the creation and marketing of cryptocurrencies given its reputation as a global financial center. It is also one of the first countries in the world to create an agency which supports investors operating in the cryptocurrency field. The Crypto Valley Association which operates in the canton of Zug is supported by the government and the authority supervising the financial markets, therefore the creation of a crypto-related business in Switzerland could bring many advantages to those interested in setting up a small company.
On the other hand, Ireland has emerged as a fintech state once the largest IT companies in the world have started establishing their European headquarters here. Ireland does not rely on such advanced rules related to the financial sector, but on those related to the information technology which is why this country is more suitable for those interested in developing cryptocurrencies. Those who want to create cryptocurrency companies in Ireland will also benefit from several tax advantages.
Types of cryptocurrency businesses
Those who plan on starting a crypto business in any country, not only in Switzerland or Ireland, should know that not all types of activities related to cryptocurrencies are regulated. Among the most popular ones and which fall under the umbrella of the laws in Ireland and Switzerland are investment funds which market digital coins, companies which mine for cryptocurrencies, IT companies which offer e-money solutions and initial coin offerings, simply known as ICOs. These are usually the most developed types of businesses in other countries as well.
Creating a cryptocurrency company is definitely one of the most prolific and innovative types of business in our days and the legislation is slowly but surely evolving so that more activities related to virtual money are regulated. This is also one of the most important aspects to keep in mind when choosing a country for starting a cryptocurrency business in.