Where to Get a Crypto License in 2025: Top Jurisdictions & Key Insights

Amid increased regulation and interest of states in creating bitcoin reserves, more and more companies are looking for jurisdictions with a loyal approach to digital assets - without unnecessary bureaucracy and with clear rules.

In this article, we look at the key issues of crypto licensing in 2025. We assess the specifics of working in the EU after the introduction of Markets in Crypto Assets (MiCA) regulation and analyze promising alternatives: El Salvador, Argentina, Bosnia and Herzegovina, Seychelles. We also consider license-free options: Panama and Costa Rica.

European Union: the MiCA era

From January 2025, regulation under the MiCA regulation came into force in the European Union (EU). The document unified the requirements for Crypto-asset related service providers (Crypto-asset Service Provider, CASP) in all EU countries and effectively replaced the previously existing local regimes.

Several examples:

• Czech Republic. For providing services with cryptoassets without a license, fines can reach CZK 16,587,000 (~€661,000);
• Lithuania. Violations of Regulation (EU) 2023/1114 are punishable by a fine of up to €5 million or 5% of annual turnover. For operating without a CASP license, the regulator imposes a fine of up to twice the amount of illegally obtained income or material benefit;
• Malta.For providing crypto services without a license, the MFSA may impose a fine of up to twice the amount of profits made or losses avoided. The maximum fines are: for individuals - up to €700,000, for legal entities - up to €5 million or 5% of annual turnover.

Companies already operating as CASPs before 2025 benefit from a transitional period. This allows them to continue to operate while the MiCA license application is pending. The length of the transition period varies:

Each EU country may independently determine the length of the transition period, but it should not exceed 18 months.

European companies registered before December 30, 2024 as a VASP (Virtual Asset Service Provider) under FATF standards can also take advantage of the transition period to adapt to MiCA requirements and apply for CASP status in 2025 or 2026.

Currently, several companies have already received CASP licenses. Among them:

• Boerse Stuttgart Digital (Germany); 
• Bitpanda (Austria, Germany, Malta);
• MoonPay, BitStaete, FinTech ZBD, Hidden Road (Netherlands);
• OKX (Malta).

Under reverse solicitation, companies outside the EU cannot actively promote their services in EU countries. The ban includes:

• SEO optimization for European regions;
• geotargeted advertising to EU users;
• websites in official EU languages without a justifiable need;
• sponsoring European events;
• redirecting European users to your website.

To qualify for CASP status, companies must meet the following requirements:

• Have at least one EU resident director;
• have a physical office in the EU with staff appropriate to the scope and nature of the company's activities;
• have a capital of €50,000 to €150,000 depending on the type of service;
• implement the necessary policies: internal controls, conflict of interest management, AML/CFT.

Once authorized, CASP can passport its services in all EU member states.

Legal support for obtaining a MiCA license includes a preliminary assessment of the company's activities, drawing up the necessary documents and developing a step-by-step action plan.

European market will only be accessible to large players capable of meeting and financially supporting a broad list of regulatory requirements.

The approximate time to prepare the documentation is two to three months, and the license itself takes about six months, depending on the chosen EU country.

El Salvador: bitcoin hub and Tether's choice

El Salvador has been one of the pioneers in cryptocurrency regulation. The government legalized bitcoin in 2021, and two years later adopted a law on the issuance of digital assets that made the country an attractive jurisdiction for crypto businesses.

Tether, the issuer of the largest stablecoin, has move its headquarters to El Salvador in 2025. Binance and Bitfinex exchanges, KoiPay and GlobiancePay payment services also operate here.

There are two types of licenses in the Republic:

1. Bitcoin Service Provider (BSP) - for companies working with bitcoin (issued by the Central Bank, BCR);
2. Digital Asset Service Provider (DASP) - for companies providing services related to other cryptocurrencies (registered by the National Digital Asset Commission, CNAD).

Other benefits of obtaining a license in El Salvador include:

• understandable laws and government loyalty.The government actively supports the development of the cryptoindustry;
• operability.A DASP license can be obtained relatively quickly;
• ease of interaction with the regulator. Authorities are quick to respond and helpful when questions arise;
• flexibility in management. Shareholders may be non-residents;
• tax benefits. The income of companies with a DASP license is exempt from income tax.

Requirements for obtaining a DASP license:

• A minimum of two shareholders. The founder may be any natural or legal person who is not on the sanctions lists and has no criminal record;
• minimum authorized capital - $2000;
• virtual address. A physical office is desirable but not required;
• Implementing cybersecurity standards with external audits;
• bookkeeping and regular reporting;
• compliance with AML/KYC requirements.

Obtaining a crypto license in El Salvador takes three to six months and follows the following procedure:

1. Registering the company with the Commercial Registry.
2. Obtaining a DASP license from CNAD.
3. Opening a corporate account to deposit the authorized capital.
4. Registration with public authorities.

The last step includes registration with the country's tax authority, the Social Security Institute, and El Salvador's Ministry of Labor and Ministry of Finance.

Argentina: a favorable climate for crypto startups

Argentina is becoming an increasingly popular jurisdiction for cryptocompanies due to its lenient requirements and simple registration procedures. The country is especially attractive for crypto startups, as it does not require significant costs.

Argentine law allows the exchange of digital currencies for fiat, as well as the issuance of stablecoins and tokens backed by other assets. On March 25, 2024, the National Securities Commission (CNV) issued a regulation requiring virtual asset service providers (PSAV) to comply with FATF recommendations on AML/CFT and register with a special registry.

At the time of writing, the following are operating in Argentina:

• Binance (Binance Services Latinoamérica S.A. de C.V.);
• Coinbase;
• ByBit;
• Bit2Me.

The entire process from starting a company to registering with the CNV and the Financial Intelligence Unit (UIF) takes up to four months.

Bosnia and Herzegovina: Europe without MiCA

Bosnia and Herzegovina offers an interesting solution for businesses wishing to remain in Europe but avoid the strict MiCA requirements. Registration and Virtual Currency Service Provider (VASP) status is possible in Republika Srpska.

License advantages:

• simple legal environment. No complex EU regulatory requirements;
• favorable taxation. Fixed income tax rate (10%);
• convenient payment solutions.Access to local and European bank accounts;
• easy start. Minimum authorized capital and no requirement for a physical office.

At the time of writing are operating in the country:

• DCX Exchange;
• Adriatic Crypto Exchange;
• Crypto Trading Management Servis;

To obtain a license, the applicant needs: staff, authorized capital (~$580), a registered office and internal policies. It is also mandatory to hire an accountant and submit regular tax returns.

The whole process takes about four months and consists of the following steps:

1. Company registration.
2. Preparation of documents for obtaining VASP status.
3. Review of the application and registration.
4. Account opening.

Each step takes about a month to complete.

Seychelles: a regulated harbor for crypto business

Seychelles has traditionally been a popular jurisdiction for cryptocurrency companies due to its lack of strict regulation. However, in 2024, licensing regulations came into effect that provide legal certainty while retaining many of the jurisdiction's advantages.

Licensing requires a minimum of two directors (one local), qualified staff and compliance with security criteria. Companies must have a physical office in Seychelles and file annual financial statements.

Government fees must also be taken into account: the application costs €5,000, the same amount for the basic annual fee. For each type of activity, an additional €5000 to €25,000 is charged.

The process of obtaining a license takes five to nine months.

Non-licensing alternatives

For companies that do not plan to work with fiat funds, there are jurisdictions where cryptocurrency activities are not licensed.

Costa Rica. Benefits:

• No minimum capital requirements;
• one shareholder/director is sufficient;
• territorial principle of taxation (no taxes on foreign operations);
• no audit/reporting requirements;
• closed registers;
• the possibility of opening a local account.

SLEX Exchange, Pursa and Coinpay crypto projects are registered in Costa Rica.

Panama. Advantages:

• No capital requirements;
• one shareholder is sufficient;
• three directors are required (residency is not required);
• territorial principle of taxation;
• no state requirements for AML/KYC;
• confidentiality of ultimate beneficiaries.

Projects such as Polymarket, Mantle Network and Meta Pool operate in Panama.

In both cases, registration is completely remote and takes no more than a week.

Conclusions

When choosing a jurisdiction for a crypto business, one should take into account the legal framework, the state of the banking and financial infrastructure, the tax system, as well as the cost and timing of obtaining a license.

If the company is focused on the EU market, it will have to work according to MiCA rules. This is a strict regulation, but it guarantees a high level of trust on the part of users. CASP licensing is a complex and lengthy process with significant costs. Taking into account authorized capital requirements (between €50,000 and €150,000), staff, office, ICT systems and compliance costs, the total cost of launching a project can be around €250,000.

Those looking to operate in Europe without MiCA compliance should consider Bosnia and Herzegovina. The costs of hiring a local employee and obtaining authorization are low and affordable for start-ups.

Those oriented towards the global market should pay attention to El Salvador, Argentina or Seychelles - these countries have a loyal legal framework for cryptocurrencies and a minimum entry threshold. However, it should be kept in mind that these jurisdictions require careful preparation. Depending on the type of services and the scale of operations, a business needs to spend between €20,000 and €50,000.

If the project does not work with fiat currency, the best options are Costa Rica and Panama. These countries have minimal requirements and a quick registration procedure, no compulsory licensing, and low costs for the launch and further support of the project.