Are you planning to start a crypto business in 2026?
Wait, before you begin, there is something significant you need to understand.
When you start a business, choosing the right country plays a major role in your success.
You must consider many key factors: the country’s legal rules and regulations, license and registration requirements, tax policies, government and banking support, market demand, and even the cost of living.
These aren’t just details, they are crucial decisions that can decide whether your business succeeds or fails.
A true businessman thinks: Why start in just one country, when we can start across an entire continent?
Your question is 100% correct. And if you ask any businessman to choose a continent, Europe would be the right choice. Because it offers strong crypto regulations and investor-friendly environments.
Then your doubt might be: Which countries are the best for starting a crypto business in Europe?
In this blog, we’ll reveal 8 highly profitable and crypto-friendly countries in Europe that offer the best opportunities for launching and scaling your crypto business.
Curious to find out which country is perfect for you?
Then keep reading, the right decision could change your entire future.
Top 8 Countries in Europe to Start a Crypto Exchange Business
Find out the Top 8 Countries in Europe for launching a crypto exchange business, known for crypto-friendly regulations, attractive tax benefits, and strong growth opportunities. These leading destinations offer a secure legal framework and high market potential to successfully build and scale your crypto exchange.
Switzerland
Switzerland is one of the best countries for crypto and blockchain companies because it offers a transparent legal environment. Taxes and banking conditions are favourable, and certain Swiss cantons, such as Zug, known as the "Crypto Valley," have low corporate tax rates, business-friendly infrastructure, and an excellent international reputation.
The Swiss government allows you to start a crypto business by obtaining a license or registration. You can either apply directly to FINMA (the financial regulator) or become a member of a recognised Self‑Regulatory Organisation (SRO) under the country’s anti‑money laundering (AML) laws.
Companies must follow all applicable tax rules, including corporate income tax and other relevant taxes. If you offer ICOs, tokenised securities, or DLT trading services, your business will face additional regulatory scrutiny. The classification of your tokens, whether as crypto assets or securities, is crucial, and depending on the type, extra licenses or compliance requirements may apply.
Germany
In Germany, there is a strong market demand for crypto, and the business opportunities are significant. If you operate as a crypto‑asset service provider (CASP) offering exchange, custody, wallet, trading, or other crypto services, you must obtain a permit or license from BaFin, the country’s financial regulator.
Obtaining a license comes with minimum capital requirements. Regarding taxes and reporting, crypto income or business profits are treated like regular income, so you must comply with income tax, corporate tax, accounting, and record-keeping requirements.With the adoption of MiCAR (EU‑wide) in 2024–25, legal clarity across Europe will improve, providing greater confidence to both investors and businesses.
Portugal
Portugal has emerged as a leading European hub for crypto ventures and digital investors, thanks to its friendly tax environment. Retail traders enjoy flexibility on crypto gains, while innovative entrepreneurs can leverage the Golden Visa programme for EU residency.
For businesses, Portugal provides easy access to European markets with relatively light regulation. However, tax rules for professional traders and corporate entities are tightening, making it essential to stay informed.This dynamic environment offers a golden mix of opportunity and compliance, positioning Portugal as a top choice for firms aiming to serve European clients.
Estonia
Estonia offers transparent regulations for crypto businesses, and crypto assets are legally recognised as property. By 2025, Estonia will be fully compliant with the Markets in Crypto-Assets (MiCA) regulatory framework. This means that once you obtain a license in Estonia, it will be valid EU-wide, making it easier to access markets across Europe.
Any crypto service provider must obtain a CASP license from the Estonian Financial Supervisory Authority (FSA) under the local Crypto Asset Market Act. Older VASP licenses previously issued by the FIU are no longer valid under the new regulations.Crypto gains, profits, and income from crypto are treated either as property transfer gains or as business income, depending on the nature of your activity, and you must declare and pay the applicable income tax accordingly.
Malta
Malta is widely known as a crypto-friendly destination and has earned the title “Blockchain Island.” Crypto assets are legal and regulated under the Malta Financial Services Authority (MFSA) through laws such as the Markets in Crypto-Assets Act and the earlier Virtual Financial Assets (VFA) Act.
By obtaining a CASP (Crypto-Asset Service Provider) license, a Malta-based company can operate across the entire European Union with full market access, meaning you can run Europe-wide business activities through a single license, thanks to EU passporting advantages.
To apply for a license, a company must comply with strict requirements related to governance, transparency, compliance, IT and security infrastructure, client-asset safeguarding, KYC/AML policies, audits, and reporting standards. Depending on the type of service offered, there are minimum capital or paid-up capital requirements.
Luxembourg
Luxembourg has implemented MiCA in 2025, providing strong legal clarity and a unified regulatory framework for crypto-asset services across the European Union. The country is known for its crypto-friendly and digital-asset-supportive financial environment. Even Luxembourg’s public sovereign wealth funds have begun investing in cryptocurrencies like Bitcoin, demonstrating growing institutional trust and global acceptance.
Businesses operating from Luxembourg benefit from the EU passporting system, a single license allows companies to offer services across all EU member states, enabling easier expansion throughout Europe.
If you want to operate as a Crypto-Asset Service Provider (such as an exchange, custody service, trading platform, or token issuance service), you must apply for a license or authorisation from the Commission de Surveillance du Secteur Financier (CSSF).For corporate entities holding crypto assets, net-wealth tax applies to crypto holdings, and any gains from the disposal of these assets are taxed under corporate income tax or business income tax.
Slovenia
Slovenia treats crypto-assets as “virtual currencies” or “virtual assets,” making activities such as trading, holding, and mining fully legal. Crypto exchanges, custodial wallet services, transfers, and other crypto-asset services are allowed and supported by the authorities.Recently, Slovenia has updated its regulatory framework, including the implementation of MiCA, providing a clearer legal basis and stronger regulatory certainty for both firms and investors in the crypto market.
If you conduct crypto activities as a business, such as running an exchange, mining, or trading professionally, standard business and corporate tax rules apply. Profits from trading, mining gains, and fees from crypto services are all taxable under these rules.
Netherlands
Cryptocurrency has legal status in the Netherlands. If you operate a properly licensed crypto business, you gain full access to the EU market after obtaining the license. For personal crypto holdings that are not part of a business, crypto is treated as an asset or investment rather than income. Consequently, the taxation approach for individuals differs from that for business activities.
If you operate as a crypto-asset service provider, such as an exchange, wallet, broker, or custody service, you must obtain a license from the Netherlands Authority for the Financial Markets (AFM) under the new Markets in Crypto-Assets Regulation.Starting 30 December 2024, the new regulatory regime comes into effect. Crypto businesses that were previously registered with De Nederlandsche Bank (DNB) must migrate to an AFM license by mid-2025 or cease operations.
How to Identify if a Country is Friendly Toward Crypto?
Identifying a crypto-friendly country is crucial before starting any crypto business. A country that supports crypto usually has clear regulations, a supportive financial system, and encourages blockchain innovation. Below are the key factors to consider:
Key Points to Identify a Crypto-Friendly Country
Clear Legal Framework: The country has specific laws or regulations defining how cryptocurrencies and blockchain businesses operate.
Licensing & Regulatory Support: Authorities provide straightforward licensing processes for exchanges, wallets, or crypto-asset service providers.
Tax Incentives or Clarity: Tax rules on crypto profits, trading, and holdings are transparent, sometimes offering incentives to businesses.
Banking & Financial Infrastructure: Local banks and payment systems support crypto businesses, making transactions and operations easier.
Government & Institutional Support: Government initiatives, grants, or partnerships promote blockchain and crypto innovation.
Market Demand & Adoption: Strong local or regional interest in crypto ensures a healthy market for users and investors.
Conclusion
Alright, based on everything we have discussed so far, I believe you now understand which countries in the European continent are suitable for starting a crypto business. Now, you might have one more question in mind: If so many countries are ready for crypto business, why should we choose among them? And more importantly, how can we launch our own crypto platform?
For countries with strict rules and regulations like the ones we discussed, you need a highly reliable and well-built crypto exchange platform. And that’s exactly where ApziX comes in. We are one of the top-ranking crypto exchange development company, trusted for building secure, scalable, and fully compliant crypto trading platforms. Our speciality lies in building customised platforms tailored to each client’s business needs and delivering them quickly with high quality.
