March 1, 2024

Launching a DeFi company? 9 tips for choosing the best locale

Even in a digital era, choosing the right location for a new DeFi business can be a critical and complex task.

In this era of digital and remote business operations, it’s not uncommon to hear that choosing the location of a company’s headquarters isn’t as important a decision as it used to be. However, if an entrepreneur is launching a decentralized finance company, they’d be wise to set that advice aside. Launching in a relatively young industry with unsettled regulatory environments and unique talent needs means choosing a headquarters locale is actually a critical decision.

So what are the details to consider and the checkboxes to tick for an entrepreneur researching where to launch a DeFi company? Below, nine members of Cointelegraph Innovation Circle share their earned industry knowledge to help a DeFi founder who’s considering where to locate their startup headquarters.

Look for existing regulations and support

The world has been changing rapidly, and we have seen a big move to remote operations, which certainly needs to be taken into consideration. But DeFi still has many complications. An essential goal would be to locate in the most regulated and supportive region possible, as that will allow you to focus on growth instead of having to navigate uncertain rules and/or restrictive laws. – Ilias Salvatore, Flooz XYZ

Think about how you want to manage talent

Talent is the most significant driver for early-stage companies. I’ve seen many founders set up physical offices in areas with a high concentration of engineers and critical early roles so that company culture can be developed. Conversely, I have also seen larger companies hire a remote-first global workforce and not even establish a physical headquarters. There is no “one size fits all” answer. – Megan Nyvold, BingX

Consider access to the broader DeFi ecosystem

While selecting a jurisdiction with favorable DeFi regulations is pivotal, it’s equally vital to consider a location that offers access to the broader DeFi ecosystem. An entrepreneur’s success often hinges on their network and support system. Being situated in a hub near industry events, talent and fellow DeFi companies can provide a unique advantage that enhances collaboration and innovation. – Sheraz Ahmed, STORM Partners

Seek quality blockchain communities and infrastructure

Together, infrastructure and ecosystem support play a vital role. Opt for regions with active blockchain communities, quality tech infrastructure and supportive government initiatives. This ensures not just easier compliance, but also synergy with like-minded innovators, which is essential for scaling in the DeFi sector. – Maksym Illiashenko, My NFT Wars: Riftwardens

Prioritize the regulatory environment

Entrepreneurs should prioritize the regulatory environment when selecting a headquarters for their DeFi company. It’s vital because regulations can either foster growth and innovation or lead to legal challenges and restrictions, significantly impacting the company’s success and sustainability. – Vinita Rathi, Systango

Research tax policies

Operating in different jurisdictions can present unique challenges due to variations in taxation policies and regulatory frameworks. For example, some countries have more favorable tax policies for crypto businesses, while others have stricter regulations. – Tammy Paola, Zerocap

Review your goals and values

Choosing the right location for the headquarters of a DeFi company involves a careful balance between regulatory compliance, access to talent and markets, tax considerations, and the overall business environment. It’s a decision that requires thorough research and a review of your specific business goals and values. – Myrtle Anne Ramos, Block Tides

Seek to minimize legal challenges

A critical factor to consider is the regulatory environment. The legal and regulatory framework of a country can impact operations, compliance costs and investor trust. Choose a favorable jurisdiction to enhance business sustainability and minimize legal challenges. – Anthony Georgiades, Pastel Network

Keep costs and capital access in mind

In multiple countries, DeFi companies are unregulated or sparsely regulated. A DeFi entrepreneur should locate their headquarters in a place where laws are friendly toward crypto-native companies. Founders should also keep taxation, access to capital, commercial real estate costs and other factors in mind. All these factors are critical because they provide legal clarity and external stability for a company. – Abhishek Singh, Acknoledger


This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.