Crypto Regulation, MiCA, and Unexpected Jurisdictions: Interview with Mark Gofaizen

Together with tech development, adoption status and the economics of crypto assets, regulation remains the key metric of the global blockchain development process. The road to perfect regulation is bumpy; normally, every new framework is met with criticism by the community.

That being said, getting legal stuff done is of paramount importance for every startup. Failing to do so might result in severe penalties, or, at best, damage to the user base. Also, this sphere is very vibrant yet fragmented, and navigation through legal challenges is by no means easy.

That is why U.Today is excited to sit down with Mark Gofaizen, co-founder and senior partner of Gofaizen & Sherle, a flagship international legal and consulting company in crypto.

U.Today: Hey, Mark, thank you so much for coming. Please introduce yourself. How did you come to crypto and blockchain, and why does this segment look interesting to you?

Mark Gofaizen: I’m originally from Tallinn, Estonia, with a background in economics and an MBA from TalTech. I began my career in international consulting just as Estonia became one of the first countries to regulate crypto – we saw the rise of VASPs and even crypto ATMs in Tallinn.

In 2018, I entered the crypto space as an entrepreneur, drawn by its rapid growth and transformative potential. Despite early skepticism, I believed in its future – the chance to help shape a new financial system, challenge traditional banking, and rethink the role of money.

In 2021, together with my partner Mihhail Sherle, we founded our company to support crypto projects with legal and business services – making it easier to build a borderless economy.

U.Today: What are the main services Gofaizen & Sherle provides, and who are your primary customers?  

Mark Gofaizen: As the core, we help crypto businesses become fully compliant in the jurisdictions they choose –  from startups to large companies. We handle licensing, banking, hiring, office setup, and ongoing support like accounting and reporting.

We work globally –  from MiCA licensing in the EU to crypto regulation in Latin America, El Salvador, and beyond. Whether it’s launching a crypto exchange, a forex platform, or a gambling project, we know how to navigate the rules almost anywhere in the world. So far, we’ve supported over 700 projects.

U.Today: Let’s talk about regulation trends. Compare the previous cycle, and today’s: What actually changed in terms of regulation?

Mark Gofaizen: Compared to the last cycle, the regulatory landscape has clearly matured – but also become more fragmented and unpredictable. Earlier, many projects chose jurisdictions based on speed and low entry barriers. Today, the decision-making is more strategic.

We’re seeing a shift driven by global instability – geopolitics, market volatility, and constant regulatory updates. This uncertainty affects both user behavior and how crypto businesses approach compliance, expansion, and risk.

U.Today: From your perspective and experience, what’s happening in the crypto sphere right now - especially in terms of regulation?

Mark Gofaizen: Europe remains a strong starting point. Clients still see it as a region with reliable banking and international payments infrastructure. But with MiCA and growing regulatory demands, flexibility has become critical. Companies need to adapt quickly to new rules, and access to banking is now the top priority when choosing where to set up.

Globally, the market is polarizing. On one side – regulated hubs like the EU, where there’s trust and structure, but also higher costs and longer timelines. On the other – offshore jurisdictions like Panama or the AnjouanI, where setup is fast and cheap, but banking is difficult and credibility suffers.

The crypto industry is still young. We expect more regulatory shifts ahead – but for now, the trend is clear: credibility and banking access are becoming more valuable than just speed.

U.Today: What is the key target destination for crypto business registration right now? Share your top 5.

Mark Gofaizen: I’d group the most promising jurisdictions into two tiers.

Tier 1 includes the most balanced and scalable options:

• El Salvador stands out with a strong DASP license, working infrastructure, crypto-friendly tax policies, and real momentum. Major players like Binance, Bitfinex, and Tether are already there.

• Canada offers a highly reputable regulatory environment and solid banking access. There’s some bureaucracy, but it’s a stable, future-ready choice.

• The U.S. (Montana in particular) allows MSB registration without state-level authorisation, making it a good base for global operations without diving into the full complexity of the U.S. market.

Tier 2 covers smart alternatives with lower entry barriers:

• Bosnia and Herzegovina is a hidden gem — flexible, under the radar, and reminiscent of Poland or Czechia a few years back. It’s a good moment to get in early.

• Australia is well-regulated and globally respected. It’s more complex and costly to set up, but a great option for teams with long-term ambitions.

U.Today: Let’s move to destinations beyond the EU. Is it really so difficult for crypto businesses to stay compliant with EU regulations?

Mark Gofaizen: Let’s be clear: MiCA is a real milestone. It brings legal certainty, credibility, and a unified framework for operating across the EU - which is great news for projects looking to scale.

But it doesn’t come easy. MiCA means high compliance costs, long timelines, and a lot of regulatory complexity. For early-stage teams or fast-moving products, it can feel out of reach.

That said, MiCA is absolutely accessible -  and we’re already helping clients navigate it, especially in Lithuania. Local regulators and the crypto community have even proposed extending the transition period to the end of 2025. It takes time and effort, but we believe in the framework. And despite the challenges, Lithuania remains one of the most attractive EU jurisdictions for crypto businesses.

U.Today: Let’s talk a little bit about LatAm. It is gaining traction as a promising destination for crypto businesses. What are key trends and challenges here?

Mark Gofaizen: LATAM is one of my favorite regions right now. We opened a local office in San Salvador last year – and it was the best decision. The region offers a rare mix of flexibility, regulatory clarity, and institutional credibility.

El Salvador stands out with its zero corporate tax on Bitcoin and digital asset activities under the DASP license. The license itself covers a wide range: exchange, custody, tokenization, lending, and more – all under one framework. That’s a big contrast to the fragmented regulations elsewhere.

LATAM also benefits from political neutrality, staying open for business even during global turbulence. We’re already helping major players get licensed, and interest is only growing. This window of opportunity is open now - but it may not stay open forever.

U.Today: Which exotic destinations for crypto business registration/licensing are on your radar?

Mark Gofaizen: A few stand out right now:

• Switzerland – Top-tier credibility, but it comes at a price. Local directors, office, and strict compliance are required. Monthly costs can hit €7–8K.

• UAE – Strong reputation and solid banking, but the entry point is high. Full setup often starts around €200K, including capital, staff, and infrastructure.

• Brazil – An emerging player. We’re seeing early demand as the country develops its crypto regulatory framework.

• Asia – Mixed picture. Places like Singapore, Japan, and South Korea are heavily regulated. Others, like Taiwan, still lack clear rules. The “middle ground” is missing for now.

U.Today: What is your forecast on major regulatory trends for the next 2-5 years?

Mark Gofaizen: As I mentioned earlier, today’s crypto environment is shaped by uncertainty – geopolitical tensions, market instability, and regulatory shifts all play a role. These factors continue to influence business strategy, user behavior, and overall market dynamics.

Looking ahead 2-5 years, I don’t expect the market to consolidate just yet. Regulation will keep evolving, and companies will need to stay agile. Europe will remain the benchmark for many – especially with MiCA – but we also see real momentum in alternative jurisdictions that offer practical, working solutions.

In such a fast-moving space, long-term stability is rare. So if a jurisdiction can offer clarity and a predictable regulatory path for even a few years, that’s already a strong advantage for any project.

U.Today: What would you recommend to early-stage businesses seeking registration and legal advice in crypto in 2025?

Mark Gofaizen: Start by choosing your jurisdiction wisely – look at regulatory costs, credibility, banking access, and rule stability over the next few years. That’s usually enough to make an informed decision.

Stay open to new markets. With the right guidance, you can structure your project globally. In practice, this means a company based in El Salvador, Canada, or another jurisdiction can serve clients in other countries under the reverse solicitation principle – and access EU banking (like SEPA) through licensed European payment institutions, without being limited by its country of registration. The main condition is to avoid direct marketing in those regions to stay compliant.

At Gofaizen & Sherle, we support such setups and offer access to a broad network of payment providers to help companies enter their target markets smoothly.