Offshore crypto license

Obtaining a crypto license is the first step in a successful business launch. An official permit from regulatory bodies allows operating within the legal framework in the cryptocurrency market, which is becoming increasingly regulated. Many startups aim to register their projects in countries offering the most favorable conditions for business by obtaining an offshore crypto license.

Who Needs International Digital Currency Permits

Any crypto project — whether it’s a crypto exchange, crypto exchanger, crypto bank, crypto fund, or blockchain providers offering electronic wallet services — must obtain a license, permit, and registration for their type of activity. Acquiring an International cryptocurrency permit (crypto license, crypto registrations, crypto authorizations) ensures that your company operates within the legal framework.

Licenses allow expanding the potential user base of a crypto project, as you may attract clients not only within the country where the crypto company is registered but also non-resident clients from various jurisdictions. Compliance with regulatory requirements ensures partnership opportunities with payment processors and other financial institutions.

Advantages of Offshore License for Cryptocurrency Operations Abroad for Non-Residents

Many startups opt for offshore jurisdictions for licensing and obtaining permits since registration in these areas is less expensive. SBSB lawyers also suggest considering other advantages of Global digital asset permits obtained in offshore jurisdictions:

• lower tax rates;
• high level of confidentiality;
• rather simple corporate reporting rules;
• easier licensing procedures.

For more detailed information on the advantages of offshore cryptocurrency licensing and obtaining permits, you can contact SBSB experts.

Best Offshore Jurisdictions For Crypto Projects

Currently, the cryptocurrency license, permit, authorization from overseas, such as island offshore zones, are available. Requirements for obtaining a license, application review timelines, and offshore crypto regulatory approval vary depending on the jurisdiction. Therefore, the SBSB team recommends familiarizing yourself with the specifics of the most popular ones:

British Virgin Islands

The British Virgin Islands (“BVI”) continues to attract virtual assets businesses seeking to capitalize on its status as a leading offshore financial centre. Unlike many other jurisdictions that have either prohibited certain types of virtual assets or imposed material restrictions on them, the BVI has become renowned as a friendly jurisdiction for facilitating the development of virtual asset ecosystems, platforms, projects, exchanges and marketplaces. The Virtual Assets Service Providers Act, 2022 (the “VASP Act”) in the BVI creates the legal framework for the registration and supervision of Virtual Assets Service Providers (“VASPs”) such as virtual asset exchanges, virtual asset marketplaces, virtual asset brokerages, virtual asset custody, perpetual futures exchanges operating in and from within the BVI. 

Gibraltar

In Gibraltar, licenses can be obtained for simple blockchain projects, ICO projects, crypto exchanges, and exchanges. Mandatory company registration in the country. The licensing process takes several months.

Costa Rica

In Costa Rica, no license or authorization is required for opening a cryptocurrency company, as there is no regulation on issuing permits. One advantage of this offshore crypto haven is that cryptocurrencies are not prohibited in the country and are not regulated by separate legislative acts. The registration process takes up to 5 days.

Panama

Panama – attaractive jurisdiction where crypto is unregulated. Company registration will be enough to conduct any desired activity without a crypto license. The Panama has a territorial principle of taxation; there is no taxes if the company provides activities abroad.

Seychelles

Prior to June 2024, there were no specific regulations in Seychelles regarding crypto activity licensing. This lack of regulatory oversight made Seychelles a very popular jurisdiction for many trading platforms and cryptocurrency businesses seeking flexibility and ease of operation.  Now that licensing rules have been established, the jurisdiction remains attractive due to its favorable tax regimes. The new licensing framework provides an option for well-established companies to continue their business operations within a regulated environment, enhancing their credibility and compliance with international standards.

Saint Vincent and the Grenadines

A company registered in Saint Vincent and the Grenadines is not subject to taxation. Among the attractive conditions for doing business is the absence of requirements regarding reporting and audits. The crypto license allows users to provide cryptocurrency exchange services, conduct transactions with digital wallets, and engage in initial coin offerings.

If you encounter difficulties with cryptocurrency licensing in foreign jurisdictions, seek help from SBSB legal experts. We can assist you in choosing a crypto-friendly jurisdiction for your project and prepare all necessary documents.

How to Obtain Crypto License in Offshore Jurisdiction

The procedures of licensing and obtaining permits vary depending on the jurisdiction since local regulatory bodies have different requirements for companies planning to work with cryptocurrencies. Among the standard requirements, we can highlight:

• document package (AML/KYC compliance policy, bank account details);
• business plan for the first three years of operation;
• information about beneficiaries and founders, and copies of their identification documents;
• list of provided services.

Cost of Crypto License from a Foreign Jurisdiction

The license price depends on the nature of the crypto project’s activities, the chosen jurisdiction, the regulator’s established requirements, and fees. Legal services provided to the licensee during document preparation and processing also impact the final price. Therefore, the cost of the license is calculated individually for each project.

why you should address SBSB Fintech Lawyers

Since 2013, our team has been involved in launching crypto projects and providing comprehensive legal support. Thanks to years of experience, we help clients choose the optimal jurisdiction for opening a business, prepare document packages, register companies, open bank and merchant accounts, and resolve organizational issues.

Reach out to SBSB Fintech Lawyers’ attorneys, and you will receive a customized solution considering your company’s business model. Our experts will ensure the smoothest possible launch of your crypto project anywhere in the world in the shortest possible time!