Starting a DeFi company? 9 tips for choosing a location for your headquarters

Source: Cointelegraph Innovation Circle, compiled by Song Xue, Golden Finance

In this age of digitalization and remote business operations, it's not uncommon to hear that choosing a location for your company's headquarters isn't a decision as important as it used to be. However, if an entrepreneur is going to start a distributed financial company, they would do well to put this advice aside. Doing business in an industry that is relatively young, with an unstable regulatory environment and unique talent needs, means that choosing a headquarters location is actually a critical decision. **

So, what are the details to consider and what checkboxes to tick for entrepreneurs researching where to start a DeFi company? Below, nine members of the Cointelegraph Innovation Circle share the industry knowledge they've gained to help DeFi founders who are considering where to set up their startup headquarters.

Look for existing regulations and support

The world is changing rapidly, and we've seen a major shift in remote operations, which of course needs to be taken into account. But there are still many complexities in DeFi. A fundamental goal is to be in the most regulated and supported region possible, as this will allow you to focus on growth without having to comply with uncertain rules or restrictive laws. – Ilias Salvatore, Flooz XYZ

Think about how you want to manage talent

Talent is the most important driver for early-stage companies. I've seen many founders set up physical offices in areas with a high concentration of engineers and key early-stage positions in order to grow company culture. Conversely, I've seen larger companies hire remote-first, global employees without even having a physical headquarters. There is no "one size fits all" answer. ** – Megan Nyvold, BingX

Consider entering the broader DeFi ecosystem

While it's crucial to choose a jurisdiction with favorable DeFi regulations, it's equally important to consider locations that offer access to the broader DeFi ecosystem. ** Entrepreneurs' success often depends on their network and support systems. Located near the hub of industry activity, talent and other DeFi companies can offer unique advantages that enhance collaboration and innovation. - Sheraz Ahmed, STORM Partner

Seek quality blockchain community and infrastructure

Together, infrastructure and ecosystem support play a vital role. Choose a region with an active blockchain community, quality technical infrastructure, and supportive government initiatives. This not only ensures compliance, but also synergies with like-minded innovators, which is essential for scaling in the DeFi space. - Maksym Illiashenko, My NFT Wars: Riftwardens

Prioritize the regulatory environment

Entrepreneurs should prioritize the regulatory environment when choosing a headquarters for a DeFi company. This is crucial because regulations can either promote growth and innovation, or they can lead to legal challenges and restrictions that can have a significant impact on a company's success and sustainability. —— Vinita Rathi，Systango

Research tax policy

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

Review your goals and values

Choosing the right location for a DeFi company's headquarters requires a careful balance between regulatory compliance, talent and market access, tax considerations, and the overall business environment. This is 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 key factor to consider is the regulatory environment. A country's legal and regulatory framework impacts operations, compliance costs, and investor trust. ** Select a favorable jurisdiction to enhance business sustainability and minimize legal challenges. — Anthony Georgiades, Pastel Network

Keep costs and capital acquisition in mind

In several countries, DeFi companies are unregulated or rarely regulated. DeFi entrepreneurs should be based in a place where the law is friendly to crypto-native companies. Founders should also keep in mind taxes, access to capital, commercial real estate costs, and other factors. All of these factors are crucial because they provide legal clarity and external stability to the company. – Abhishek Singh，Acknoledger