LICENCE JURISDICTIONS

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Procedures and requirements differ with each jurisdiction and those standards affect your exposure to the degree of difficulty and financial expense.  We will place you in the jurisdiction that best fits your business plan and budget.   

Regulatory requirements and costs often influence the decision to choose one jurisdiction over another.  Important factors can vary substantially by jurisdiction, but the most essential to consider are: - Capital requirements - Physical presence, office space and minimum personnel requirements - Qualifications, fit and proper tests for key people - Outsourcing options and technical requirements  - Banking, operation and segregated accounts - Time, how long it takes to get a licence - Taxes and operating costs - Regulatory conditions, how it affects your offering - Reporting and auditing - Reputation of the jurisdiction.

There is no one perfect jurisdiction but, depending on your offering and target market, we will ascertain the most ideal jurisdiction for your business.   

Generally, jurisdictions can be graded based on the country’s regulatory requirements including capital adequacy, reporting standards and disciplinary consequences.  Although it is not an all-inclusive list, these are the most prevalent jurisdictions where financial service firms are seeking licences: 

A-Grade

Higher capital requirements, rigorous rules, laborious reporting standards and tougher penalties for non-compliance. Switzerland (FSMA) - USA (CFTC, NFA) - Japan (FSA Japan) - United Kingdom (FCA) 

B-Grade

Capital requirements, physical presence rules, simplified reporting standards, fit and proper tests and lower tax rates. - The Bahamas (SCB) - Malta (MFSA) Cyprus (CySEC) – Estonia (EFSA) - United Arab Emirates Dubai (DFSA) 

C-Grade

Little or no regulation compared to the other grades. - Vanuatu (VFSC) – Gibraltar (GFSC)  

Navigating various cryptocurrency and digital asset licence jurisdictions and the regulatory environment is more complex than ever.  Many rules have changed increasing the criteria and difficulty to get a cryptocurrency or digital asset licence. And, there a more threatening regulations coming.   

The regulatory landscape and cryptocurrency regulation is disparate.  The United States may take regulation in an entirely new direction.  The United Kingdom is facing change with Brexit finalized.  European Union states are slaves to a bureaucratic monster trending towards over-regulation.  China is quickly embracing regulatory powers to reduce volatility in their emerging consumer economy.  On the other end of the spectrum there are banana republics offering ‘diploma-by-mail’ financial services licences, and notorious tax-havens living up to their wild-west images.  In between, those other countries are trying to make sense of it all amid political and economic instability.

Some jurisdictions are creating greater barriers to entry while others are working towards attracting more business.  These regulatory shifts could crush your business if you make the wrong decision.

Before launching your cryptocurrency trading software, consider the requirements.  Financial regulations require a fine balancing act, with constant room for adaptation and reaction as markets develop.  Too little regulation may lead to ineffective investor protection and incubate a predatory environment leading to reputational risks.  While too much regulation can result in lost global competitiveness and reduced incentives for financial service providers to operate within a certain jurisdiction.