Crypto License vs. Other Jurisdictions: What’s More Advantageous for Business

In 2025, the cryptocurrency market continues to grow rapidly, reaching a capitalization of trillions of dollars. For companies operating in this space - from exchanges and DeFi platforms to NFT marketplaces and funds - obtaining a crypto license or a license elsewhere is not just a formality but a strategic step. A license ensures legality, builds client trust, provides access to banking services, and enables scalability. Dubai, ambitiously positioning itself as a global crypto hub, attracts businesses with its flexible regulations and tax incentives. But how does a crypto license in Dubai compare to those in other leading jurisdictions like Singapore, Switzerland, Estonia, Malta, Gibraltar, and the Cayman Islands? In this article, we will thoroughly examine the advantages and disadvantages of each jurisdiction, provide practical tips, and offer examples to help you choose the optimal option for your business.

Why Do You Need a Crypto License?

A crypto license is a gateway to legitimate business operations. Without it, companies risk facing fines, account freezes, and reputational damage. A license confirms compliance with AML (anti-money laundering) and CFT (counter-terrorism financing) requirements, which are critical amid tightening global standards, such as FATF recommendations and the EU’s MiCA regulation. It also facilitates partnerships with banks, attracts investors, and opens access to new markets. For instance, a company with a Dubai crypto license can more easily integrate with payment systems like Visa or Mastercard and attract institutional clients.

Key Factors for Choosing a Jurisdiction

• Regulatory Requirements: What documents, capital, and structure are needed?
• Cost and Time: How much does it cost to obtain and maintain a license?
• Taxes: What tax benefits are available?
• Reputation: How is the jurisdiction perceived by investors and partners?
• Market Access: Which regions and clients become accessible?
• Infrastructure: Support for startups, access to talent, and technology.

Dubai: The Middle East’s Crypto Hub

Dubai, part of the UAE, is actively developing its crypto ecosystem under the Virtual Assets Regulatory Authority (VARA), established in 2022. In 2025, VARA is expected to continue expanding its scope to include DeFi, NFTs, stablecoins, and tokenized assets, with streamlined online application processes for a crypto license Dubai provides and strengthened AML/CFT and investor protection oversight.

Requirements

• Corporate Structure: Registration of a company in the UAE, often in free zones (DMCC, ADGM). Requires a physical office, local compliance officer, AML policies, KYC procedures, regular audits, and insurance.
• Capital: Significant capital is required, varying by license type, with higher amounts for full-market licenses (covering trading and custody) compared to retail or advisory licenses.
• Documents: Detailed business plan, financial projections, proof of capital, cybersecurity policies (multisignature, pentests), and product description.

License Types:

• Full Market: Comprehensive operations (trading, custody, brokerage).
• Retail: Operations with retail clients.
• Custody: Asset storage.
• Advisory: Consulting services.

Cost and Time

Cost: Application fees for a crypto license in Dubai are substantial, with additional annual fees. Other costs include office rent, compliance, and audits, leading to a significant first-year budget.

Time: Several months, including preparation, submission, VARA review, and final approval, with timelines varying based on application complexity.

Advantages

• Tax Benefits: 0% corporate tax in free zones, no capital gains tax.
• Infrastructure: Access to investors, events (Future Blockchain Summit, GITEX), talent, and tech clusters. For example, major players like Binance and Crypto.com have pursued a Dubai crypto license to leverage its ecosystem.
• Global Access: Simplified cross-border operations and integration with traditional finance via local banks.
• Innovation: Support for DeFi, NFTs, and metaverses. VARA offers sandboxes for startups.

Disadvantages

• High Competition: Many companies are expected to hold a crypto license in Dubai by 2025, increasing market competition.
• Stringent Checks: VARA demands transparency in operations and capital sources.
• Local Office Dependency: Remote management is limited.

Practical Tip

A crypto license in Dubai offers is ideal for large exchanges, DeFi platforms, or companies targeting the Middle East and Asia. For example, a startup launching a spot exchange could attract significant venture capital through local funds. However, small startups should consider office and compliance costs.

Singapore: Asia’s Leader

Singapore, regulated by the Monetary Authority of Singapore (MAS), remains a key Asian hub due to its stability and market access.

Requirements

• Structure: Local company with a physical office, resident director (citizen or PR), AML officer, compliance with the Payment Services Act (PSA) and FSMA.
• Capital: Varying capital requirements for Standard Payment Institution (SPI) and Major Payment Institution (MPI), with additional deposits needed.
• Documents: Business plan, AML/CFT policies, IT audit, financial projections.

Cost and Time

Cost: Application fees are moderate, with annual fees and additional costs for office rent and compliance, leading to a notable first-year budget.

Time: Several months for MAS review, plus preparation time, with timelines depending on application complexity.

Advantages

• Taxes: 17% corporate tax, but exemptions for foreign income and 0% capital gains tax.
• Markets: Access to Asia (China, India, Japan) and institutional investors.
• Reputation: MAS license is a “gold standard” for banks and partners.
• Infrastructure: Singapore FinTech Festival, accelerators, and venture funds.

Disadvantages

• Lengthy Review: MAS conducts thorough applicant checks.
• Restrictions: Licenses are rarely issued for offshore operations.
• High Compliance Costs.

Practical Tip

Singapore is suitable for companies targeting Asia or institutional clients. For example, a crypto fund could attract significant investment from Asian markets. Small startups might consider Estonia for lower costs.

Switzerland: Prestige and Stability

Switzerland, with its Crypto Valley in Zug, is regulated by FINMA and offers licenses from FinTech to DLT trading.

Requirements

• Structure: Swiss company (AG or LLC), office, resident manager, AML officer.
• Capital: Varying capital requirements, with higher amounts for larger licenses.
• Documents: Business plan, AML policies, audit, Stampa declaration (for tokens).

Cost and Time

Cost: Application and annual fees are moderate, with additional costs for audits and taxes (11.9–21%, varying by canton).

Time: Several months, including preparation, registration, licensing, and bank account setup.

Advantages

• Reputation: Crypto Valley hosts Ethereum, Cardano, and Tezos. A FINMA license is a mark of quality.
• Stability: Regulations unchanged for over 5 years, low risks.
• Taxes: Competitive rates in Zug (11.9%), startup support.
• Innovation: Support for asset tokenization and DLT.

Disadvantages

• High Living and Office Costs: Significant annual expenses.
• Complex Process for Small Businesses.
• Limited Access to Non-European Markets.

Practical Tip

Switzerland is ideal for token issuance or prestigious projects. For example, a real estate tokenization project could secure substantial funding through local funds. However, a crypto license in Dubai is more flexible for rapid operations.

Estonia: Access to the EU

Estonia, regulated by the Financial Supervision Authority (FSA) and the new MiCA regulation (2025), offers EU access through license passportization.

Requirements

• Structure: OÜ with an office, at least 2 board members, AML officer.
• Capital: Notable capital requirements, in fiat.
• Documents: Business plan, AML/CFT policies, IT plans, audit.

Cost and Time

Cost: Application fees are significant, with additional compliance costs.

Time: A couple of months for FSA review, plus preparation time.

Advantages

• Taxes: 0% on undistributed profits, 20% on dividends, VAT-exempt for crypto.
• EU Access: Passportization across 27 countries, e-Residency for remote management.
• Simplicity: Minimal requirements for startups.

Disadvantages

• Transition Period Until 2026 due to MiCA.
• Limited Infrastructure compared to a Dubai crypto license.
• Stringent AML Checks.

Practical Tip

Estonia is the best choice for budget-conscious startups targeting the EU. For example, a DeFi startup can launch cost-effectively and scale to Germany or France.

Other Jurisdictions

Malta ("Blockchain Island"): Regulated by MFSA, taxes 5–35%, EU access. Capital and time requirements are moderate. Advantages: support for DAO, DeFi. Disadvantages: high compliance costs. Suitable for EU-focused projects.

Gibraltar (GFSC): Flexible rules, 0% capital gains tax, moderate capital and time requirements. Ideal for offshore exchanges, but infrastructure is weaker than Switzerland’s.

Cayman Islands (CIMA): 0% taxes, sandbox for testing, short processing times. Ideal for funds and confidentiality, but offshore reputation limits partnerships.

Comparative Analysis

Jurisdiction	Capital (Min.)	Time	Application Cost	Taxes	Market Access	Reputation	Infrastructure
Dubai	Significant	Several months	Substantial	0%	Global/Middle East	High	Excellent
Singapore	Moderate	Several months	Moderate	17% (exemptions)	Asia	Stable	Excellent
Switzerland	Low to Moderate	Several months	Moderate	11.9–21%	Europe	Prestigious	Good
Estonia	Moderate	A few months	Notable	0–20%	EU	Affordable	Average
Malta	Moderate	Several months	Varies	5–35%	EU	Innovative	Good
Gibraltar	Moderate	Several months	Varies	0–12.5%	Offshore	Flexible	Average
Caymans	Varies	1–2 months	Low	0%	Offshore	Confidential	Weak

Practical Scenarios

• Large Exchange: A crypto license Dubai offers - low taxes, rapid growth, access to substantial transaction volumes.
• DeFi Startup: Estonia - low costs, EU passportization.
• Asset Tokenization: Switzerland - reputation, DLT support.
• Crypto Fund: Caymans - 0% taxes, confidentiality.
• Asian Market: Singapore - access to institutional clients.

Additional Factors for Choosing

• Business Type: Exchanges and Custody: A Dubai crypto license or Singapore (high capital, global access).
• Startups: Estonia or Malta (low costs, EU access).
• Funds: Caymans or Gibraltar (offshore, 0% taxes).
• Banking Integration: Switzerland and Singapore are easier for bank accounts; a crypto license in Dubai requires local banks.
• Future Regulations: MiCA in the EU (Estonia, Malta) tightens rules; a crypto license Dubai offers remains flexible.
• Investors: A crypto license in Dubai and Switzerland attract venture capital; Caymans attract hedge funds.