Eternity Law International — News — Offshore VASP license

Offshore VASP license

Published:
August 28, 2023

Fintech services are actively developing today. Every month new corps are enlisted in many countries, which are ready to work in this sphere. Traditionally, most attention is paid to offshore zones. Such territories have the most applications to the controlling authorities for obtaining the relevant authorization documents.

However, the legislation in this area also changes regularly. Therefore, applicants for a VASP license in offshore should take them into account, as the rules and prerequisites for those who would like to issue such permissions may change.

Let us take a closer look at the countries and regions with the loftiest concentration of applications among newly established or existing legal entities. Therefore, we will be primarily interested in the changes to VASP in Bermuda, the Virgin Islands, the Cayman Islands, Guernsey, and Jersey.

Bermuda

The local regulator has issued 16 licenses to new applicants in the past year. Since the decision to issue a license is not made in one month, this is quite a large number of players in the market.

The region welcomes requests for permits and is willing to consider applications from all companies that will meet local requirements. At the same time, the regulator can discuss with companies the process of obtaining a license and help them eliminate deficiencies in their applications. Traditionally, the greatest number of questions arise in applications where the organizational structure of legal entities is not quite correct. However, a productive dialog with the regulator in this region is possible for quick elimination of deficiencies.

Virgin Islands

The local authorities at the end of last year adopted a law regarding the regulation of virtual service providers and in February this year, it became effective. Due to the adopted law in the region, each company that seeks to provide such services must obtain the appropriate authorization from the regulatory body.

To date, all those who have not issued such a license are obliged to stop their activities. Otherwise, they will be recognized as violators of the law and the owners of such companies will face legal and financial liability. In addition, corporations that will be working in this area must adhere to strict obligations and help the region fight money laundering.

All companies that have been authorized must operate by local law and verify all transactions where the transaction (or the total number of transactions) exceeds the amount of one thousand US dollars. For those working with cryptocurrencies, every effort should be made to avoid being subject to transaction tracking laws and to comply with the local regulator’s rules.

Caymans

There is also a lot of activity in this region among those wishing to obtain a license. Last year alone, 18 applications were submitted to the country’s regulatory-authorities and the regulator approved some of the applications, but some were still denied.

Unlike other regions, in Cayman, the VASP legislation was introduced in 2 stages. Companies must first register and only then can they proceed to licensing. All applications for licensing have now either been processed or are being processed by the country’s regulatory-authorities.

Guernsey

Last year, the region passed the Credit, Loans, and Finance Act, which became effective last month. It requires all organizations to obtain licenses to do business in the region. Because of this law, the local regulator has a big responsibility, as the number of applications for licenses has expectedly increased. Moreover, representatives of the commission report that they are not sure that they will be able to consider all applications for licensing in time. But without a license, companies cannot operate even in August 2023.

This law covers the operation of 4 business lines:

  • consumer lending;
  • the operation of financial firms;
  • operation of financial platforms;
  • Provider services with virtual assets.

Representatives of the last line of business will be able to transfer funds, change them, store them, and provide other financial services if they have a license. They are also obliged to monitor all transactions and trace possible traces of fraud and other violations in this area.

Jersey

In February this year, the authorities of the region included VASP in the list of business areas that require licensing. The relevant permits are issued by the local Commission for Financial Services. All businesses had to submit applications by July 1 of this year. Appropriate permits are issued by the local financial services commission. All businesses had until July 1 of this year to apply.

On this island, the legislation states that digital assets are not certain investments.

Therefore, it is more advantageous for the region to set up companies in Jersey and operate through them. Such legal entities are subject to a zero tax rate on income derived from investment activities. There is also an agreement between Jersey and Singapore regarding the absence of double taxation on digital assets.

Who will help with the paperwork

As you can see, legislation even in offshore zones changes regularly. Since it is extremely difficult to keep track of all the changes on their own, many people turn to the relevant organizations for legal advice. Our company is ready to help in solving such issues. We are a team of true professionals who regularly monitor changes in laws and contact regulators in various offshore and non-offshore regions. We are ready to apply all our knowledge and experience to help our clients and advise them at all stages of obtaining a license.

Already during the first consultation we will study your application and tell you what needs to be corrected. This will significantly reduce the waiting period for a decision from the regulator, and while your competitors are correcting mistakes, you will be able to actively work in the market thanks to the license you have received.

You could be interested

Crypto License in Portugal

In modern financial space, a separate niche has already been formed for cryptocurrencies – digital funds that are used for settlements and actively circulate in various operations. More organizations are appearing on the market intending to offer services for the crypto-exchange, opening of crypto-currency debit cards and carrying out crypto-operations. In jurisdictions favorably accepting cryptocurrencies,...

Company registration in Liberia

Liberia is located in Western Africa. Recently, this jurisdiction has become more popular among foreign entrepreneurs. Liberia is a member of all international organizations, in particular the UN, WHO and IMF. Foreign investors see the country as a place to build a successful company respected in international markets. Among the benefits of incorporating a business...

Bank account for startup

Bank account for startup – where to choose? Choosing the right account with a foreign banking institution will help you keep track of all your expenses, generate revenue and enjoy flexible and convenient banking services. Which account type to choose and in which country to apply for its opening depends on what the account you...

Company liquidation in Montenegro

Suspending a venture’s operation is a complex course of action that demands cautious consideration to legislative regulations and laws. Entities usually resort to that procedure when all of their primary duties are carried out, however, the reasons for that decision can vary. It is principal to comprehend the concept of closing down the organization, mainly...

Bank account creating for your business-company: remittance system or bank

Every business-company, no matter its size or industry, needs access to financial services to operate efficiently. Whether you are starting a new venture or expanding an existing one, creating a bank account is one of the first critical steps to ensure the smooth functioning of your company. However, in today’s rapidly evolving financial landscape, enterprise...

Kazakhstan EMI License: overview

Given the rising market demands for electronic money and cash-free transactions across the world, an Electronic Money Institution in Kazakhstan fairly is a tremendous opportunity for businesspersons. To capture a share of the financial market of this jurisdiction, a Kazakhstan EMI License should be obtained by financial service providers. It authorizes entities to issue e-money...

Related posts

VASP License in Argentina

This type of licence is increasingly relevant as this region becomes a hub for e-currency operations. To obtain VASP licence in Argentina is essential for operating legally within Argentina’s growing crypto market, offering multiple benefits from regulatory support to potential tax incentives. Advantages of VASP Licence Demands for receiving this type of licence The submission...

VASP in BVI

The BVI have long been recognized as a leading offshore monetary center. This picturesque Caribbean territory boasts a stable political environment, a robust legal system, and a range of monetary services that make it attractive for persons and corporations seeking to manage and protect their funds. One key player in the offshore finance world, on...

Offshore financial license

A financial activity is an activity in which the funds of a person are managed by a third party. Companies that are used for personal gain, such as personal investment companies, funds, or companies set up to manage their wealth otherwise, are not technically financial services companies, as these funds are solely owned by the...

VASP license in Hong Kong

On June 24, 2022, jurisdiction governmental authorities released Anti-Money-Laundering and Terrorist-Financing (AML/FT) Order; it established licensing and regulatory norms demanding to possess VASP license in Hong Kong. Let us consider it in more detail and find out how it affects firms operating in this industry. The draft law amended the AML and CFT Order, main...

Cryptocurrency offshore license

Creating crypto organizations in offshores is not as complicated as it seems. Main advantages of obtaining such a permit as cryptocurrency offshore license is ability to pay tax at a low rate, or to exempt your company from taxation altogether. In addition, offshore offers increased levels of protection of personal information of the enterprise’s owners....

VASP License in Mauritius

Only those firms that have been registered in accordance with the provisions of the Law of Jurisdiction, issued in 2001, can apply for such a permit as a VASP license in Mauritius. VASPs are required to have a physical office in Mauritius.  The category of providers dealing with virtual assets and possibility to get cryptolicense...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: