Offshore Crypto License
Every crypto organization must obtain a license to operate legally. Today, quite a lot of countries provide such services, but not all of them offer favorable conditions for cooperation. That is why many organizations choose the Offshore Crypto License. It allows them to get rid of excessive regulation by government agencies and will also enable them to minimize tax costs.
Offshore jurisdictions
Saint Vincent and the Grenadines
SVG strives to create the most favorable conditions for licensing. Companies have no special requirements, and organizations are exempt from paying taxes. There are no anti-money laundering and compliance obligations. In addition, SVG does not set conditions for the minimum amount of authorized capital and the provision of financial statements.
This jurisdiction is excellent for any crypto business, including crypto exchanges, marketplaces, DeFi projects, etc. No matter your company’s profile, you can get permission here if you have a reasonable business fee and register in this jurisdiction.
The British Virgin Islands
Getting a crypto license from the British Virgin Islands is an excellent solution if you want to avoid taxes. There is no minimum share capital and no high licensing fees. It is suitable if your company is engaged in DeFi projects, exchanging crypto-to-fiat assets, issuing coins, or any other activity related to the crypto industry.
To obtain a license, you must have a legal entity and a physical office registered in that jurisdiction. It would be best if you also had a business plan and a certificate of no criminal record.
Cayman Islands
The Cayman Islands government has simplified the licensing process as much as possible so that you can submit all documents remotely. This jurisdiction also exempts crypto companies from paying taxes.
Typically, this jurisdiction is chosen by innovative companies whose activities do not fall under the existing categories. The sandbox license is valid for 1 year, and you can get it again in the future.
However, your company must comply with local anti-money laundering policies, and you must employ local personnel.
Seychelles
Getting a Seychelles license is easier if you’re tired of being constantly monitored by government agencies. For many entrepreneurs, this is not only a tourist paradise island but also a jurisdiction with the most favorable conditions for licensing crypto organizations.
There is no minimum authorized capital or special requirements for the company. The owner and shareholders must have no criminal records, and the company must have a sound business plan. In addition, it must be AML and KYC compliant.
Types of offshore crypto licenses
The type of offshore license is highly dependent on your company’s activities. They can be divided into two categories – classic crypto exchanges that exchange crypto assets for crypto assets and fiat-crypto exchanges that allow you to trade crypto assets for fiat currencies.
Also, some jurisdictions have additional permissions, such as the sandbox license. It is suitable for those whose activities are not regulated by other rights.
Cryptocurrency Offshore License has a lot of advantages. Among the most important of them are:
- Excellent asset protection;
- High level of confidentiality;
- Tax incentives;
- Simple procedure for obtaining a license;
- Multiple ownership forms are available.
In general, if you want your business to develop readily and quickly, you should get a license in an offshore jurisdiction, allowing you to forget possible tax problems.
Obtaining an offshore license also has several disadvantages:
- State authorities do not accept payments in cryptocurrency;
- A small selection of banks;
- High level of cryptocurrency volatility;
- Confusion in the classification of digital assets.
All these problems can be solved if you seek the help of specialists who will help you choose the most suitable bank and sort out the confusion in the classification of digital assets.
About CFC rules
Nobody wants to be fined or jailed for not paying taxes. To prevent this, you need to know the CFC rules that apply in your country. If you cannot understand the law, don’t hesitate to contact our specialists for help.
The fact is that there are offshore jurisdictions that have public personal registers of licensed companies and transfer financial information of non-residents, while there are jurisdictions that do not. We advise you to determine which of these options suits you best.
Obtaining a cryptocurrency license in an offshore jurisdiction
The process of getting a crypto license is highly dependent on the jurisdiction you have chosen. However, some steps are mandatory for all countries:
- Make sure the jurisdiction you choose is proper for you;
- Company registration in the chosen jurisdiction;
- Prepare a business plan;
- Prepare your AML/KYC policies;
- Open a bank account;
- Apply to the relevant authorities.
If you want to simplify the process of obtaining a license for yourself as much as possible, we advise you to contact our specialists for help. They will conduct a full consultation and answer all possible questions. They will also help you with paperwork, including creating a business plan. In this document, you should have all the necessary information about your company, from the organization’s name to financial capabilities.
Although most offshore jurisdictions do not impose a capital requirement, you must have a local bank account. It is worth noting that very few banking institutions agree to store crypto assets. In addition, payment of all duties is carried out exclusively in fiat currencies.
All documents required to register a company and obtain a license must be translated into the language of the jurisdiction. In most cases, all applications can be submitted online, so you do not need to fly to the other side of the world to get a license.
The term for issuing a permit depends on the jurisdiction you choose. If you prepare all the documents in advance, then the registration of applications and their consideration will take only a few days.
