In this era of digital and remote business operations, it is not uncommon to hear that choosing a company’s headquarters location is not as important a decision as it used to be. However, if an entrepreneur is launching a decentralized finance company, it would be wise to leave that advice aside. Launching in a relatively young industry with unstable regulatory environments and unique talent needs means that choosing a local headquarters is actually a critical decision.
So what are the details to consider and the checkboxes to check for an entrepreneur researching where to launch a DeFi company? Below, nine members of Cointelegraph’s Innovation Circle share their industry knowledge to help a DeFi founder considering where to locate his startup headquarters.
Find existing regulations and support
The world has been changing rapidly and we have seen a big move towards remote operations, which certainly needs to be taken into account. But DeFi still has many complications. An essential goal would be to locate in the most regulated and supportive region possible, as this will allow you to focus on growth rather than having to navigate uncertain rules and/or restrictive laws. – Ilías Salvatore, Flooz XYZ
Think about how you want to manage talent
Talent is the most important driver for early-stage companies. I have seen many founders establish physical offices in areas with a high concentration of engineers and critical initial roles in order to develop company culture. In contrast, I have also seen larger companies hire a remote 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 it is critical to select a jurisdiction with favorable DeFi regulations, it is equally vital to consider a location that offers access to the broader DeFi ecosystem. An entrepreneur’s success often depends on their network and support system. Being located in a hub near industry events, talent, and other DeFi companies can provide a unique advantage that enhances collaboration and innovation. –Sheraz Ahmed, STORM Partners
Find quality blockchain communities and infrastructure
Together, infrastructure and ecosystem support play a vital role. Opt for regions with active blockchain communities, quality technology infrastructure, and supportive government initiatives. This ensures not only easier compliance but also synergy with like-minded innovators, which is essential to scale in the DeFi sector. – Maksym Illiashenko, My nft Wars: Rift Guardians
Prioritize the regulatory environment
Entrepreneurs should prioritize the regulatory environment when selecting a headquarters for their DeFi company. It is vital because regulations can foster growth and innovation or create legal challenges and restrictions, significantly impacting the success and sustainability of the company. –Vinita Rathi, Sistango
Tax policy research
Operating in different jurisdictions can present unique challenges due to variations in tax policies and regulatory frameworks. For example, some countries have more favorable tax policies for crypto companies, while others have stricter regulations. –Tammy Paola, Zero capital
Review your goals and values
Choosing the right location for a DeFi company headquarters 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 extensive research and review of your specific business goals and values. –Myrtle Anne Ramos, Lock tides
Seek to minimize legal challenges
A critical factor to consider is the regulatory environment. A country’s legal and regulatory framework can affect operations, compliance costs and investor confidence. Choose a favorable jurisdiction to improve business sustainability and minimize legal challenges. –Antonio Georgiades, Red Pastel
Consider costs and access to capital
In several countries, DeFi companies are unregulated or poorly regulated. A DeFi entrepreneur must locate their headquarters in a place where the laws are friendly to crypto-native companies. Founders must also consider taxes, access to capital, commercial real estate costs, and other factors. All of these factors are critical because they provide legal clarity and external stability to a company. –Abhishek Singh, Acknowledgment of receipt
This article was published through the Cointelegraph Innovation Circle, a vetted organization of top executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. The opinions expressed do not necessarily reflect those of Cointelegraph.
