Are you looking to launch a business that will sell Crypto Tokens to the general public?
If so, there are a number of License and or Jurisdiction Options you would naturally be considering.
In our experience, most well-heeled or sophisticated investors looking to invest in Crypto Tokens would probably prefer to invest with a Licensed Operation.
If you’re aiming for such a market – and/or if your preference would be to obtain a Crypto Business License prior to going to market – there are a number of options you could/would be considering including:
- A Gibraltar DLT License
- A Malta Crypto business license
- A Mauritius VASP License
- An Isle of Man ICO License
- A Swiss ICO license
- A Caymans VASP License
- A BVI VASP License
- A UAE Crypto business license
The cost to incorporate and apply for a License for a Crypto Token Issuing business typically ranges from $US30,000 00 to $50,00 depending largely on which jurisdiction you choose.
Non Licensed Options
If you don’t have the wherewithal or the finances to apply for a Special License for your Crypto Token Issuing Business there are several jurisdiction options available to you.
The first such option to consider would be to incorporate as an IBC or as an LLC Company in St Vincent & the Grenadines (“SVG”), a small but well regarded Caribbean Island Tax/Privacy Haven Jurisdiction.
Notwithstanding that SVG has passed VASP (Virtual Asset Service Provider) Licensing Legislation it is possible to set up a Company in SVG presently and conduct cryptocurrency activity without having to apply for a VASP License as the SVG Government is yet to pass regulations governing the License application process.
That said, once the SVG Government passes the Regulations you will need to either redomicile the Company to another jurisdiction (that does not require a license eg Panama or Samoa, see below) or you’ll need to shut the Company down, or you’ll need to apply for a VASP license in SVG.
To set up such a Company in SVG would cost around $US1,500.
For detailed information in regards to St Vincent check this Link: https://offshoreincorporate.com/saint-vincent-and-the-grenadines-svg-companies/
Samoa
If you’re wanting to incorporate a Crypto Token issuing business without having to apply for a special License the second option would be to incorporate as an IBC in Samoa.
Samoa is a small self-governed (former British colony) island nation in the South Pacific region. It has offered a nil tax IBC Company regime since around 1994 and, whilst not a wealthy country, it does have a history of political stability + the comfort of a British style legal system.
Samoa has not passed VASP Legislation and has not yet publicly expressed any intention to do so.
To set up such a Company in Samoa would cost around $1,500. For detailed information in regards to Samoa check this Link: https://offshoreincorporate.com/samoa-international-business-companies/
Panama
The third option to consider if you want to avoid having to apply for a VASP style license would be the Central American Economic powerhouse of Panama.
Panama is an interesting case study …
You see, the Panama authorities favored the implementation of VASP regulation and the Legislature passed the required Bill.
BUT the Panamanian President (as is/was his right) challenged the validity of the proposed legislation by issuing a legal challenge in the Panama Supreme Court.
To many observers surprise, the Court found in the President’s favour ie the proposed Panama VASP was found to be unconstitutional by the Panama Supreme Court and hence struck down ie it never made it past the Bill stage. Hence there is very little (if any) risk, if you incorporate in Panama, of a law being passed subsequent to your incorporation requiring you to either migrate/redomicile out of the jurisdiction or apply for a VASP license.
To set up such a Company in Panama would cost around $1,500. For detailed information in regards to Panama check this Link: https://offshoreincorporate.com/panama-offshore-companies/
Would you like to know more? Then please Contact Us:
info@offshorecompaniesinternational.com
DISCLAIMER: This information is current as at 14.7.24 and the accuracy thereof may have been altered by legislative changes subsequent to publishing. OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers, financial advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.
