The beauty of blockchain is that it’s global. Web3 founders thrive in a world where we can build anywhere. For most, the best place to build isn’t your country of origin. Whether you wish to digital nomad or simply incorporate abroad, there are several things to consider.
First, let’s have a glance at what blockchain regulations you need to be aware of when making your digital nomading decisions. Then, we’ll take a look at the best and worst countries for crypto entrepreneurs like yourself so you know where to build a Web3 project.
Crypto regulations in a snapshot
If you’ve been around Web3 for any amount of time, you’re aware that the crypto regulation landscape can be like a game of Frogger. Some lanes are wide open while others will get you run over by an eighteen-wheeler truck. Here’s what to look out for in general:
- Regulatory uncertainty: It’s actually better to have regulations worked out and settled where you build a business, rather than build on quicksand where your business may someday be sunk by outside forces.
- Licensing and compliance: Many countries have strict licensing and compliance requirements for new Web3 projects that should be investigated beforehand. On the flip side, some countries are excited about crypto entrepreneurs and their licensing laws show it.
- AML/KYC requirements: There’s nothing wrong with anti-money laundering (AML) protections, except when those laws are weaponized against Web3 entrepreneurs. Equally, know your customer (KYC) laws may require new Web3 projects to build additional (expensive) infrastructure before going to market.
- Taxation of crypto assets: Most digital nomad lists include tax regulations in their country reviews, but they typically ignore Web3 taxation. What’s more, they don’t mention how difficult (or easy) it is to manage taxes in various locales. Wouldn’t you rather build in a crypto tax-free (or crypto tax-easy) country?
- Advertising and marketing restrictions: This might not sound that bad until you consider that, after building, you’ll need to find your customers. If marketing a Web3 project is banned, your project will have a hard time growing. We don’t want that for you!
One final note about culture: If crypto regulations are tight, the blockchain talent pool may also be tight (and expensive). With these in mind, let’s have a look at which regions are playing nice with blockchain companies.
Regions where building in Web3 is going well
Why take a look at regional trends, first? Culture plays a massive role in the outlook for any industry, especially ours. Far too many regulators believe crypto is for money laundering and too many would-be customers think it’s a scam. If both regulators and customers are against your work, then building in Web3 will be extremely difficult. So where is it going well?
- Europe: The European Union made headlines across 2023 and 2024 as the new MiCA regulations were sorted and went into effect. The resulting clarification of blockchain’s legal standing in Europe has been a boon. Germany, France, and Estonia in particular are seeing rapid crypto adoption, with Estonia leading the way as a digital flagship country.
- Latin America: Several countries in the LatAm region are seeing increased crypto adoption due to economic instability. In addition, El Salvador transitioned its official currency to Bitcoin in 2021 (though 92% of its residents still prefer hard currency). This tension between institutional adoption and individual usage leaves open a good deal of opportunity for the plucky crypto entrepreneur.
- Africa: Nigeria and Kenya are leading the African continent in crypto peer-to-peer transactions. However, regulations remain uncertain.
With regulations in mind, what countries should you avoid when considering where to launch your new Web3 project?
The worst: Where blockchain regulations repress
Whether you are planning to digital nomad or simply want to found a company where blockchain regulations are favorable, there are a few places to avoid. Some on this list may not surprise you. Here are the four countries of which you may want to steer clear.
- China: The original home of Binance, one of the biggest crypto companies in the world. China is now known for its unilateral regulatory ban on all trading and minting activities. The bans drove Binance to unofficially move to Malta.
- India: Though there is no outright ban, India’s regulations have been riding a roller coaster in recent years. Additionally, the country has implemented a 30% tax on gains, making blockchain entrepreneurship extremely difficult. However, from a cultural outlook, blockchain business is booming, with new Web3 projects emerging all the time.
“Despite the lack of definitive regulations, there’s a shared sense of optimism in India about blockchain’s potential. Entrepreneurs are actively building solutions, while the public anticipates a framework that balances innovation with safeguards.” —Dr. Ananya Shrivastava of Kolkata.
- Russia: It may come as no surprise that Russia does not offer favorable regulations or taxation for blockchain companies. Web3 is not banned, but you might want to avoid a country that trends on cracking down on new Web3 projects.
- United States: The U.S. Securities and Exchange Commission (SEC) is famous for throttling crypto companies, with one of the most notable being against Ripple (XRP coin). While states like Wyoming and Colorado are making attempts at being crypto friendly, the overall regulatory landscape is murky at best. It’s no wonder so many crypto entrepreneurs incorporate offshore.
Some of you are feisty and like fighting the good regulation fight. More power to you. For those that want easier building, let’s have a look at the countries where Web3 projects thrive.
The best: Where to build a Web3 project
So where should you build your new Web3 project? There are several countries that would like to boast the ‘most crypto-friendly country’ label, but only one is dubbed “crypto valley.”
- Switzerland: Zug, Switzerland, is called “crypto valley” for a reason. Their regulations and compliance are clear and easy to follow. The Swiss culture is additionally welcoming to blockchain companies. It’s no surprise, then, that the biggest crypto companies, like Ethereum Foundation, call Switzerland home.
- Portugal: Lisbon is known as a digital nomad hotspot and for its Golden Visa retirement because Portugal has made regulation and taxation highly favorable to outsiders. It boasts no capital gains tax (nearly making it a crypto tax-free country) and its capital is known culturally as one of the Web3 hubs of Europe. You’ll get fair weather and fair treatment as a blockchain entrepreneur.
- Singapore: They don’t just have the world’s coolest airport — the Monetary Authority of Singapore (MAS) has generated a positive environment for crypto entrepreneurs. Not only this, Singapore’s government actively supports new Web3 projects, and some of the biggest crypto companies like Crypto.com are based there. It’s a great country for those wondering where to build a Web3 project.
- El Salvador: As mentioned, El Salvador boasts BitCoin as its national currency. This decision drives both a positive regulatory and cultural outlook for Web3 entrepreneurs.
Whether you like snow or sun, these are great choices when deciding where to build a Web3 project. Or maybe you’ll incorporate offshore and enjoy the place you call home. Tag us on X, LinkedIn, or Warpcast with your ideal scenario.