Top Crypto-Friendly Countries and What Their Laws Mean for Your Crypto Exchange

Launching a cryptocurrency exchange software in a crypto-positive nation doesn’t mean you can skip compliance. Being “friendly” to crypto, however, translates to having clear regulations and licensing frameworks that entrepreneurs planning to set up any crypto-related platform (CEXs or DEXs) must work through.

Centralized crypto trading platforms have long been under regulatory scrutiny, but this time, DeFi applications are also feeling the heat with jurisdictions across the US, EU, and UK beginning to investigate them.

Whether you are launching your crypto trading software leveraging a white label exchange software or building one from the ground up, it is essential to navigate through the regulatory landscape of the particular jurisdictions. This guide covers what an exchange must do to legally launch and comply in the top crypto-supportive countries of 2025. 

We’ll explore the relevant regulatory bodies, required licensing, and KYC/AML obligations to ensure your crypto exchange starts on the right side of the law. 

1. United States: Multi-Agency Oversight and Licenses

The United States offers a huge market but a complex regulatory landscape. As per security.org, over 65 million American residents own cryptocurrencies. Crypto exchange software solutions face federal oversight and state-specific rules here.  

Key considerations for a U.S. launch include:

• Federal Registration & Licenses:

An exchange must identify what their platform offers—spot trading, derivatives, or tokenized securities— and get the relevant federal approvals.

• • (Money Transmitting Exchanges must) Register as a Money Services Business (MSB) with FinCEN.
  • They must also integrate a compliant AML program or launch with an AML-integrated white label cryptocurrency exchange as per the Bank Secrecy Act.
  • If the trading platform deals in securities, it’ll need SEC approval, calling for a broker-dealer or ATS license. 
  • For facilitating crypto derivatives trading, CFTC registration is needed.

• State-Level Licensing: 

Some states in the USA may require licenses and consider exchanges as money transmitters. So they need to attain state-level Money Transmitter Licenses (MTLs) for target states. 

• • New York requires the famous BitLicense from the NYDFS, mandating strict compliance, audit, capital requirements, and consumer protections. 
  • Other states, like Wyoming, are more lenient, but you must review the laws. Your white label cryptocurrency exchange development company with legal expertise can help you figure out the state-specific licensing laws.
  • Launching cryptocurrency exchange software nationwide means securing 30+ state licenses.

• KYC/AML Compliance:
  • Under the Bank Secrecy Act, exchanges must:

• • • Verify user identities (KYC) before trades
    • Maintain detailed records
    • File SARs (Suspicious Activity Reports)

• • Apart from this, the US enforces
    • Compliance with the FATF Travel Rule, which requires sharing sender/receiver info for large crypto transfers.
    • Appointment of a dedicated compliance officer and implementation of an ongoing AML training program.

Solution? A SEC-Compliant White Label Crypto Exchange and Antier’s Legal Services

Tip: Even DeFi projects targeting U.S. users should be cautious, as a regulation passed during the final days of the Biden administration designated DeFi platforms as brokers and enforced similar rules to those imposed on CEXs. However, repeal efforts have been made recently to reduce the regulatory burden on DEXs and dApps. 

2. Singapore: Licensing Under the Payment Services Act (PSA) & FSMA

Singapore is known for its progressive stance on fintech and crypto, but it enforces a strict licensing regime. The Monetary Authority of Singapore (MAS) is the sole regulator overseeing crypto exchange software and wallet providers operating in the region. 

Key compliance steps for Singapore include:

• MAS License (PSA/FSMA): 
  • All crypto exchange software solutions (within Singapore or operating from the mainland) classified as Digital Payment Token (DPT) services must be licensed under the Payment Services Act.
  • Choose between:
    • Standard Payment Institution (for smaller volumes)
    • Major Payment Institution (for larger volumes)

Pro Tip: Startups often begin as Standard PI and later upgrade to major PI.

• Requirements include:
  • Local incorporation
  • Minimum capital: S$100k (Standard), S$250k (Major)
  • At least one Singapore-resident executive director
• Operating without a license? Expect hefty fines or jail time.

• KYC/AML and Consumer Protection: 

MAS Mandates

• Full KYC onboarding for all users
• CFT controls for DPT service providers 
• Compliance with MAS Notice PSN02 (aligned with FATF standards).
• Travel Rule for transfers above SGD 1,500 (~US$1,100) (exchanges must collect and transmit sender/receiver data)
• Customer funds must be segregated from company funds.
• Strict rules for retail trading (no leverage, no credit card purchases for crypto, mandatory risk disclosures)
• Strict limits for retail users:
  • No leverage
  • No credit card purchases
  • Mandatory risk disclosures
• Regular audits and compliance reports to MAS are mandatory.

Pro tip: Antier’s MAS-compliant white label exchange software is all you need.

• DEX Considerations: 
  • Decentralized platforms aren’t exempt from any rules.
  • DeFi front-ends or wallets based in Singapore may require a license if:
    • They serve retail users, or
    • Charge fees for services
  • If you operate a crypto platform interface from Singapore, assume MAS oversight applies.
  • The upside? Being licensed in Singapore gives credibility. You can explore MAS-compliant white label exchange platforms to get started. 

3. United Arab Emirates: VARA, ADGM & a Tailored Approach

The UAE has quickly become a global crypto hub by offering well-defined regulatory frameworks in multiple jurisdictions. It offers multiple crypto licensing options across its federal and free-zone jurisdictions. Your compliance path depends on where and how you operate.

• Multiple Regulators & Zones: 

The UAE consists of federal regulators and several special economic zones:

• Few More Notes:
  • If your exchange is based in Abu Dhabi (outside ADGM) or another emirate without its crypto regulator, you’ll get licensed by the SCA.
  • ADGM-licensed crypto exchange software must follow its comprehensive framework (which heavily emphasizes AML/KYC).
  • If you are based in DIFC, ensure you meet the DFSA’s rulebook for crypto asset operators.

Pro Tip: A VARA-aligned white label cryptocurrency exchange development solution solves half of your problems.

• Licensing Process:

Regardless of jurisdiction, expect a strict but streamlined process:

• • Local incorporation is required in the zone you choose
  • Submit a detailed business plan + IT/cybersecurity policies
  • Meet capital requirements and internal control standards
  • Appoint a UAE-based compliance officer
  • Regulators like VARA and ADGM demand robust governance

Example: Binance secured licenses from both VARA and ADGM in 2024, showing that serious players are welcome.

• AML/KYC Compliance: 
  • UAE aligns with FATF standards and takes AML/CFT compliance very seriously. The Central Bank and SCA have issued guidelines requiring VASPs to follow the UAE’s AML law.
  • Your crypto exchange software must implement:
    • Full KYC onboarding
    • Ongoing transaction monitoring
    • Sanctions screening
    • Record-keeping and SAR filing per UAE AML laws
  • Travel Rule enforced so exchanges must collect and share sender/receiver info on crypto transfers, just as banks do.
  • Crypto exchange software solutions must follow asset segregation rules. Client crypto must be stored separately to protect investors
  • Regular audits are common, especially under the VARA and ADGM frameworks.
  • Non-compliance can mean heavy fines or outright license loss

So, it’s truly a compliance-first environment. On the flip side, meeting these standards means you are operating in one of the world’s most forward-thinking crypto markets.

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Not Seeing Your Target Market Here?

Planning to launch your crypto exchange software in Switzerland, El Salvador, Hong Kong, or the UK? Don’t worry—we’re just getting started.

Part 2 of this guide will dive into more jurisdictions, licensing shortcuts, and compliance strategies tailored for your expansion roadmap.

Built for Global, Backed by Antier

We’ve helped businesses launch crypto exchange software across 25+ jurisdictions—so whether you’re aiming for Dubai or Dublin, we know what it takes to do it right. We’ve got the best white label cryptocurrency exchange stack for you to ace the competition while staying compliant with your relevant regulators.

Part 2 coming soon.