Why Jurisdiction Selection Matters
Choosing the right jurisdiction is one of the most critical decisions a cryptoasset business will make. Regulatory clarity, supervisory approach, licensing timelines, and operational requirements vary significantly across markets — directly impacting speed to market and long-term scalability.
This insight outlines the key considerations firms should evaluate when selecting a jurisdiction for crypto licensing.
Key Factors in Jurisdiction Selection
There is no one-size-fits-all jurisdiction for crypto licensing. Firms must assess regulatory frameworks in light of their specific business model, target markets, risk profile, and growth objectives.
Key considerations include licensing scope, supervisory expectations, capital requirements, governance obligations, and the regulator’s approach to innovation. Operational factors such as local substance requirements, access to banking services, and ongoing compliance costs are equally important.
Jurisdiction selection should be treated as a strategic decision — not a shortcut — to ensure regulatory sustainability and avoid future restructuring.
Early regulatory engagement and feasibility assessments can help firms identify potential risks, streamline application processes, and align regulatory strategy with commercial objectives.
