How to obtain Vanuatu STO license

Vanuatu is justifiably considered an ideal jurisdiction to obtain an STO license. Loyal conditions and favorable tax regime for business owners and finance campaigns made the island State a popular place for payment system registration and cash flow management. Let’s take a closer look at the ways to obtain Vanuatu STO license.

Vanuatu Financial Services Commission (VFSC) issues licenses and regulates the Vanuatu currency market. The State Agency regulates Vanuatu neobank financial sector and maintains a register of companies in the country.

Vanuatu license classes

VFSC established four license categories: A, B, C, and D. The last one is designed to work with digital assets (intangible assets in digital form that are a set of rights or prices). A collective application for the licenses of three first classes is required to formalize it.

What is STO license?

Vanuatu STO license, also called ICO license, enables the licensees to participate in Security Token Offering.

Not only Vanuatu issues security token licenses. Virtual assets can also be authorized by:

American license BitLicense is obligatory for individuals or entities whose business activity is connected with virtual currency, as well as exchange of cryptocurrencies for fiat money and vice versa. New York Department of Financial Services issues this type of license;
Hong Kong licenses of the first type (securities transactions) and of the 7th type (automatized trading services) are issued by a local regulator — Securities and Futures Commission. The licenses regulate the activity of Hong Kong centralized trading platforms operators, ensuring security token trading;
In Great Britain, Financial Conduct Authority regulates virtual assets activity (crypto assets exchange or conclusion of agreements aiming to exchange them).

What does Vanuatu STO license offer?

Class D license enables legal activity connected with digital assets (intangible assets in digital form, stored in distributed ledger technology (e.g. blockchain)). Companies planning to become the platform for STO can submit a licensing request. Charter capital meets certain requirements: class D license requires Bond Deposit of $45 000 and charter capital no less than $500 000;

Vanuatu STO license advantages

Vanuatu jurisdiction is popular due to several reasons:

minimum control from the regulator;
one license allows combining traditional financial instruments and virtual assets trading;
favorable tax regime (zero taxation on income obtained outside of Vanuatu is provided);
Vanuatu banking accounts and accounts in European payment systems can be opened;
fast registration procedure (term of licensing is up to 7 months);
minimum accountability requirements (annual report on automatic exchange of financial information and quarterly report on the number of investors and funds attracted);
possibility to provide services to the clients worldwide;
VISA, MASTERCARD, and cryptocurrency payments are allowed.

Who can get Vanuatu license?

How can residents from other countries obtain Vanuatu STO license? Vanuatu legal entities can go through the licensing procedure. Individuals must have Vanuatu legal entity if they meet the requirements of the Anti-Money Laundering and Terrorist Financing Act (AML/CTF Act №13, 2014).