Eternity Law International News Offshore updates in the Fintech

Offshore updates in the Fintech

May 21, 2023

The Fintech industry has been experiencing significant offshore updates in recent times, leading to a global transformation in monetary favors. Offshore locations, traditionally known for their favorable adjustment environments and economically efficient operations, have become hotspots for fintech innovation and expansion.

One of the key drivers behind offshore regulatory updates in Fintech is the advancement of technology and the increasing connectivity of the global economy. With the rise of digital platforms, cloud computing, and improved telecommunications infrastructure, fintech companies can now seamlessly operate from offshore locations while serving customers worldwide. This has paved the way for new business models, enhanced customer experiences, and improved efficiency in monetary services.
Fintech, short for monetary technology, refers to the use of innovative technologies to supply monetary favors. It encompasses a wide range of applications, including mobile banking, digital payments, peer-to-peer lending, blockchain, robo-advisory services, and more. Fintech firms leverage technology to streamline processes, enhance user experiences, and create new business models in the monetary industry.

Fintech license

In many jurisdictions, fintech firms may require specific licenses or adjustment approvals to operate legally and supply financial favors. Obtaining a fintech license demonstrates compliance with regulatory demands, ensures consumer protection, and builds trust in the industry.

The specific licensing requirements for fintech business-companies vary from country to country and depend on the nature of the services provided. Some lawfullments have implemented specialized fintech licenses or adjustment sandboxes to encourage innovation while maintaining oversight.

Fintech licenses typically involve a thorough assessment of a company’s operations, financial stability, risk management processes, data protection measures, and compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. The licensing process often involves submitting detailed applications, undergoing regulatory scrutiny, and meeting specific criteria set by the regulatory authorities.

Benefits of obtaining license

The benefits of obtaining a fintech permission include:

Legitimacy: A fintech license adds credibility and legitimacy to a company’s operations, reassuring customers and partners that the business meets adjustment standards and safeguards their interests.

  • Adjustments Compliance: A Electronic payments license ensures compliance with financial adjustments, including AML, KYC, and consumer protection laws, reducing the risk of legal and reputational issues.
  • Market Access: Many monetary services require a permission to operate, and having a Payment processing license grants access to a broader market, enabling companies to offer their services to clients in regulated states.
  • Partnerships and Collaborations: Fintech licenses can facilitate fellowships and collaborations with traditional monetary institutions that may have regulatory obligations and prefer working with licensed entities.
  • Investor Confidence: Having a Online bank license enhances investor confidence as it demonstrates that the company operates within a regulated framework, potentially attracting funding and investment opportunities.

It is important to note that obtaining a fintech license can be a complex and time-consuming process. Companies need to demonstrate a robust compliance framework, appropriate risk management systems, and sufficient financial resources. Engaging legal and regulatory experts who specialize in fintech licensing can help navigate the requirements and ensure a smooth application process.

As the fintech manufacturing continues to grow and evolve, regulatory frameworks are also adapting to accommodate innovation while protecting stakeholders. Fintech licenses play a crucial role in fostering a secure and regulated environment, allowing fintech business-companies to operate with confidence and contribute to the transformation of monetary favors.


The number of offshore Virtual Assets Sector business licenses issued by the Bermuda Monetary Authority (BMA) increased to 16 in 2022, with firms now providing digital asset business favors in six out of the seven licensable business activities. Furthermore, Jewel Bank became the first recipient of a digital asset business banking license, with plans to commence actions sometime in 2023.


The British Virgin Isles recently enacted the Virtual Asset Service Providers Act, 2022 (BVI VASP Act), effective from February 1, 2023. Businesses providing virtual asset services as defined in the BVI VASP Act within or from the BVI have until July 31, 2023, to apply for registration or cease their activities. Those planning to offer virtual asset services after the Act’s implementation will require approval from the BVI Commission.


The Cayman Islands witnessed an increase in approved applications under the Cayman Virtual Asset (Service Provider) Act (Cayman VASP Act), with five approvals in Q1 2022 and eight approvals in Q2.


Guernsey recently passed The Credit, Lending and Finance (Bailiwick of Guernsey) Law, 2022 (LCF Law), effective from July 1, 2023. Businesses should submit license applications as soon as possible to avoid potential delays, as the Guernsey Monetary Favors Commission (GFSC) cannot guarantee processing of applications received after March 31, 2023. Undertaking activities without the required license may lead to illegality if compliance is not met by July 1, 2023.


(JFSC) under the Proceeds of Crime (Jersey) Law 1999. The registration deadline with the JFSC is set for June 30, 2023.

The JFSC has implemented provisions for businesses previously registered as “virtual currency exchanges” (VCEs), allowing existing VCEs to register as VASPs through a simplified “notification only” process.


As the digital asset market matures, the trend toward regulated business-companies is expected to persist. Each jurisdiction, including Bermuda, the British Virgin Isles, the Cayman Isles, Guernsey, and Jersey, offers unique opportunities for various types of business-companies. If you would like to explore a specific jurisdiction or compare their differences, please feel free to reach out for further discussion.

You could be interested

Top 6 Best Offshore Jurisdictions for trading

Trading is the buying and selling of currencies or securities in order to profit from fluctuations in their value. Those who pre-analyze the market to find the best products to sell and make similar deals are called traders. Sometimes they are also referred to as investors. The main point of such activity is that traders...

5 Best Jurisdictions for Gaming License

The global gaming market was estimated at $231.34 billion in the last year, and it is anticipated to reach a value of $353.35 billion over the next five years, registering a CAGR of 6.96% during the forecast period. As the industry grows at an unprecedented rate, this is the right time to join the profitable...

Currency Exchange Business in Czech Republic

Actually, currency exchange business in the Czech Republic is a highly controlled niche. In each state’s market, there’re many firms that work with currency exchange. This is no less popular direction than other commercial activities. Such companies conduct operations of various types: from one-time consumer transactions to interactions with major global brands. However, each of...

Operation Principe of Forex Market

The Forex trading space is a virtual marketplace designed for all products offered in this field. Through vast network of technology providers, liquidity and investment funds, and brokers that the Forex market is, each dealer may safely cooperate and choose the most profitable options for interaction. Advantages and benefits of the Forex market The need...

Forex Brokers Activities Regulation in USA

As known, Forex brokers activities regulation in USA are classified as one of the most stringent, but at the same time the most reliable in the world. Its mechanism is built on the principle of maximum protection of customers from fraudulent activities, although some features of the regulation are still a topic for active discussion....

Registration of Ukrainian citizenship for adopted persons

Based on Article 11, specified in the Ukrainian legislation “About Citizenship”, all children who live in Ukraine have the right to obtain Ukrainian citizenship on such conditions as: Children who are foreigners or do not have any citizenship, subject to adoption, can become residents of Ukraine if to stick to certain conditions. One person from...
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52

New York

1178 Broadway, 3rd Floor #3353 New York, NY 10001


Gediminas Avenue, 44A


Kesklinna linnaosa, Tuukri 19


Lochrin Square, 1


Jacovides Tower, 5 floor


Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai


Level 42, Suntec Tower Three, 8 Temasek Boulevard


20 Martin Place


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7