Offshore banking brings the expansion of financial services for Fintech and will help finding the best jurisdiction to get a license for starting an offshore bank.
If you want to start a payment processor of your own, you will need to partner with a corresponding bank. It is not easy to get a corresponding bank account nowadays, but with a sound AML policy and regular policies and procedures in place and in writing, corresponding banks may consider your application. Your Fintech may also plan to become an offshore bank itself. Puerto Rico, Cayman and Dominica are good jurisdictions. For Fintech companies doing blockchain and business in the EU, Lithuania also offers a special banking license designed for Tech and Cryptocurrency banking. Recently one of our clients’ special license application was approved in Lithuania.
In the US, one of the biggest challenges faced by startups in the fintech space, is that of money transmitter licensing. Obtaining money transmitter licenses is not easy. It involves a large amount of paperwork, money and time. It can take up to two years to amass all 50 state licenses for the USA. Needless to say, not every fintech startup requires money transmitter license coverage. For most, licenses would not be a requirement, but for those who do touch money as part of their business model, getting money transmitter licenses from the states in which their clients are based is very important.
The primary reason for people leaning towards ICOs is that it looks like a much easier way to raise a large amount of money. There are instances where that is clearly the case and that will be a long-term phenomenon. The token has to make sense for the company and it has to be appealing to the investors, one important tool to use is the types of offerings: The Regulation D have various types of offerings. The Regulation D have to sell to accredited investors.
Accounting Firm providing Accounting & Bookkeeping, Tax Planning and Offshore Strategies to grow your business and protect your assets.