I think we need to better understand the OP and his business.
If the services of his customers are illegal, any entity can sell it and he gets crypto. He won't need a company for that. And we should not encourage it as it is illegal to do so.
Let's assume the services of his customers are at least in principle legal. Hence he needs to take illegal things offline as soon as he knows about it. There is no KYC, AML and whatsoever. But he needs to take things down on time. He wants to stay out of any jurisdiction with subpoenas etc. where the government can force him to release details about his clients. Germany is better than the US but also not the first choice for privacy.
Then comes the question of what he has to release should the police come. If all is paid in crypto and their clients use usernames and no email addresses as logins, probably not too much. I guess just login IPs (which in this case are best not to be logged). Given that he lives in Germany and the company would be taxable in Germany and given that should the police come, they would knock on his door in Germany anyway, comes the question whether to use a UK Ltd with a branch office in Germany or a Ltd & Co. KG etc. The benefits are certainly quite limited in this case. Remember Kim Dotcom. he was running enough offshore business, private jets, etc. and still got caught.
In short, he will need a jurisdiction which does no CRS reporting to Germany, maybe the homeless guy setup from Mentor Gold with the UK Ltd. Otherwise a German company will be almost identical and have better payment processing options. If only cryptos are accepted, he has all the freedom and technically would not even need a real company somewhere unreachable.
