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Choosing a jurisdiction for your crypto project. Key aspects for founders


Cryptocurrency is not just an investment but also a reflection of modern trends in the financial market. Each jurisdiction, from the Cayman Islands to Singapore, offers its vision for regulating virtual assets. This overview will help you understand how international laws affect your investments and project development in this area.


Cayman Islands

In 2022, the Cayman Islands introduced the Virtual Asset Service Provider (VASP) Act, laying the foundation for developing the crypto space. The Act covers various services, including exchange, storage, and other cryptocurrency financial operations.

To obtain a license, it is necessary to:

  • Register with the Cayman Islands Monetary Authority (CIMA)

  • Present the company structure and information about the ultimate beneficial owners

  • Provide detailed information about the services offered, including exchange and asset storage

  • Describe security measures and products provided by the company

  • Submit financial prospects and forecasts for the future


British Virgin Islands

In 2022, the British Virgin Islands introduced the "VASP Act," becoming cryptocurrency innovators. The law sets precise requirements for enterprises providing crypto services, including organizing ICOs and administering crypto projects.

To obtain a license, it is necessary to:

  • Apply to the Financial Services Commission (FSC) with a detailed business plan

  • Ensure sufficient financial resources and minimum capitalization

  • Describe in detail the organization of ICOs and project administration processes

  • Some activities are still subject to traditional financial (TradFi) laws.

  • Ensure compliance with the regulator's requirements in the context of cryptocurrency activities


Singapore

Singapore is one of the leading countries in legalizing cryptocurrencies. The Payment Services Act (PSA) regulates the market, defining various aspects of exchanging digital payment tokens (DPT) and combating money laundering.

To comply with the legislation, it is necessary to:

  • Register in Singapore, have a local office

  • Have the appropriate capital and financial resources

  • Follow internal policies and procedures to prevent illegal operations

  • Ensure transparency in business conduct and adhere to regulations

  • Conduct audits and control activities related to cryptocurrencies


Republic of Malta

Malta's Virtual Financial Assets Act (VFAA) establishes frameworks for token issuance.

To enter the market, it is necessary to:

  • Go through a VFA agent to ensure compliance with standards

  • Apply for a license with a detailed description of services and products

  • Engage a system auditor for ongoing monitoring of activities

  • Comply with capitalization and financial stability requirements

  • Maintain a proper level of transparency and openness in company management


Australia

While Australia has yet to adopt specific laws on cryptocurrency, existing laws apply to the crypto sector.

To meet market standards, it is necessary to:

  • Comply with the financial services regime under the Corporations Act 2001

  • Submit regular financial reports and information about transactions

  • Ensure compliance with norms and rules within existing laws

  • Maintain a policy of transparency regarding cryptocurrency assets

  • Maintain an appropriate level of internal control and audit


Estonia

Estonia is actively implementing cryptocurrency initiatives. The country's legislation regulates the issuance of tokens and the provision of virtual currency services.

To comply with the legislation, it is necessary to:

  • Obtain permission from the Financial Supervisory Authority

  • Meet European Union requirements if the token is classified as a security

  • Ensure transparency and openness of operations

  • Conduct internal control and audit of activities related to cryptocurrencies

  • Comply with the requirements for conducting business within the virtual asset legislation


Delving into the details of cryptocurrency legislation for each country is challenging and requires writing an entire book, which would be outdated within a week. Our overview provides basic information sufficient to understand general trends and requirements. If you find one of these jurisdictions particularly attractive for obtaining a license and implementing your crypto project, contact us at Icon.Partners. We are ready to make your journey in cryptocurrencies more accessible and understandable, providing professional support at every stage.


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