Can I set up a lending company

I'm curious if it's feasible to launch a company that focuses on lending to trading platforms like Binance, Bitfinex, Bitmex, etc. I'm wondering if there would be any issues with reporting income, considering that interest rates could range from 8 to 16% APR, depending entirely on market conditions. I'm also looking into doing this in crypto-friendly places, particularly Estonia, since they allow you to manage everything online with their e-residency. Any other jurisdictions you guys would recommend?

You could try these guys: https://www.advocatescyprus.com/crypto-forex-broker-licence-lnd/ They claim to be: Experts in Crypto FOREX Broker/ Funds/ Payment Institution Licensing For the record, I've never use it, but currently, they are actively spamming on Linkedin.

Possible to create a lending/funding firm specializing in crypto, seeing that e-Residency of Estonia freely allows people from anywhere in the world to establish their own digital business within their jurisdiction. It's better to consult them directly and read the terms and conditions instead of asking the forum for such information. More likely that you'll get approved since the Estonian government seem to be friendly with the thought of foreigners establishing their businesses within the said country.

You can choose to headquarter the business in a location that can be friendly (and give a lot of incentives and breaks) to crypto-related enterprises and I am sure there are now many countries (especially small island states) very accommodating and welcoming new investments into their locations. I can mention countries like Belarus, Slovenia,  Liechtenstein and even Malta, headquarter of Binance, just to name a few. There is a big market with the lending/funding idea that you are thinking about and I think there had been some good projects on this industry, some of them even went ICO in 2017 and 2018.

Obviously, one that easily pops out is Malta. And then the Tiger of Baltics. https://www.nomoretax.eu/crypto-taxation-slovenia/ How about Singapore? http://disruptionbanking.com/singapore-to-end-taxation-on-crypto-transactions/ So as far as creating a crypto lending company, I think its doable specially if you're going to put it up on some crypto friendly nations above. Good luck.

E-residency might sound like the big loophole for your lending business but the application for an e-residency itself might be a big obstacle in your plans. Even though the application is online you still need to have a physical interview with them either in Estonia itself or any of their embassies before they even provide you the e-residency card. They are also strict with applications more related to financial activities compared to other industries since they know the abuse in money laundering with the use of their own e-residency cards. Where are you situated by the way? Maybe you don't really need to apply an e-residency with the current country you are living in.

You mean to say you want to start a venture capital company with main focus to crypto trading market. It is very much possible but be prepared with few millions at least! For tax, get professional help! How about Japan? They are most crypto and busines friendly nation in the world!