Which countries have the best conditions to start crypto-business?
This is the same question that every entrepreneur who wants to establish a company ask themselves: where to invest?
Governments have different points of view of what blockchain and cryptocurrencies can do in their own countries. Some of them have created what has sometimes been called “cryptocurrency paradises” and others just ban every crypto-initiative of their people.
It is true, making such an important decision requires analyzing several factors, however in the case of a crypto enterprise, I think there are some differences, for example i think this 6 variables are very important:
While regulations are often frowned upon by those who have spent some time in the blockchain space, they are a very important part of how to implement new technology.
In this factor, the best 2 countries are:
If the United States has Silicon Valley, Switzerland will have the Crypto Valley.
This business vision of the Swiss government is located in the city of Zug, beginning to facilitate the life of blockchain and fintech companies that has resulted in a great boom in innovative projects.
Also, this country is making great advances in the banking sector and in optimizing its voting process too.
The worst nightmare for Switzerland in terms of attracting blockchain startups is probably Malta.
On March 12 of this year, the Maltese government presented a legal framework for distributed accounting technology (DLT), which included three positive encryption bills:
- The Malta Digital Innovation Authority Act (MDIA)
- The Innovative Technology Services and Arrangements Act (ITAS)
- The Virtual Currency Law (VC).
The result of these 3 positive laws has seen an avalanche of interest in Malta as a primary destination for blockchain and ICO’s investments worldwide.
This factor has to do with all the concepts that include public and private services, here are some examples:
Electricity, water, internet, telephony, legal services, accounting services, digital services, taxes, etc.
When I say accessible, I not only mean that it is a fair price but that these services are easy to obtain and use by entrepreneurs.
In this factor, the best 4 countries are:
It is one of the cheapest places to establish a company , since starting a company costs only 100 euros. The procedures for this, in addition, can be done online. See more here.
It is a bit more expensive than its neighbor (it costs about 300 euros) but it is one of the fastest. In a couple of days you have everything ready. See more here.
The good thing about Canada is that there is no need to pay or have any minimum capital to start your startup, but you need to know that once you start, the taxes are quite high and you get practically 30% of the profits. See more here.
The average of time and cost of opening a business is in six days and about 500 euros, although here the main problem is to enter, since work visas are quite complicated to get. See more here.
Many of the world’s most stable countries can be found in northern Europe. Stable economies, political stability, and better living conditions are some of the main factors that this countries show to the world.
According to the Fragile States Index, which is compiled by the Fund for Peace, Finland, Norway, and Switzerland rank among the least fragile countries in the world.
The index has a maximum score of 120 which means a failed state. With the index, the lower the score, the better.
In this factor, the best 3 countries are:
Finland was ranked the safest state on earth according to the Travel & Tourism Competitiveness Report 2017. In 2016, The Legatum Prosperity Index ranked Finland the best-governed state on Earth.
There are no indicators of organized crime in the country, and the World Economic Forum ranked Finland’s judiciary as the most independent judiciary in the world. Few cases of corruption are reported in the state; education is among the best, and health care is free.
Norway is ranked the second most stable country in the world. It is a highly developed country with excellent infrastructure and social amenities. The level of crime is low compared to other developed countries, and the organized crime is nearly unheard of. The living conditions are high, and it is ranked among the safest countries on Earth.
Switzerland is known to be a neutral state. The federal structure creates an interdependency between state agencies resulting in a reliable government. The free market policy is observed and subject to few regulations. The tax system is attractive, and the service sector dominated the economy. The education, health, and public sector are well developed.
I have put these two indicators because they seem fundamental to have the best economic — technologies conditions in the population so that services / products that crypto-startups could provide can be fast and efficient.
Of course, even if these two indicators are high does not guarantee that crypto initiatives can be a success. Look at China, which is the country with the highest number of internet users but its government has greatly restricted cryptocurrency.
In this factor, the best 3 countries are:
Denmark, Netherlands and Finland
Among EU member states, Internet banking is more common in Denmark (where 90% of people aged 16 to 74 said they were using it) and the Netherlands (89%), followed by the other Nordic countries: Finland (87%)
Here you can see this chart:
In theory, to choose a place to start a crypto company you must weigh all these factors and more, so I think this evaluation is very personal since the project you want to undertake is unique.
Of course, these factors are referential since the ideal of this type of complex evaluations is to do it professionally with a feasibility study.