Seychelles ltd
- Thread starter Vincov
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I don't meant to single you out but where is this lack of understanding of how EMIs work coming from? Has anyone actually looked into how EMIs are regulated, supervised, and audited?
I don't want to make it sound like EMIs are suitable for storing wealth. But it's disappointing to see so many members being so confidently incorrect. This forum flourishes when we all learn from each other.
Banks in many jurisdictions offer a deposit insurance of somewhere in range of 100,000︀ – 250,000 USD/EUR per person per bank. The exact implementation varies, but this security often︁ doesn't come from the bank but rather from the government. Banks pay into a pool︂ which is used to pay out deposit insurances, before dipping into the funds from the︃ failed bank. If a bank fails in a jurisdiction with a 100,000 EUR deposit guarantee︄ and you have 100,001 EUR in that bank, you can say goodbye that to that︅ 1 EUR.
EMIs, on the other hand, are required to maintain 100% reserves. Whatever your︆ and everyone else's balances are, they have in a bank account somewhere. This is a︇ mixed blessing. It means they can only make money from charging fees and cannot make︈ money from lending or fractional reserve banking. The upside is that if an EMI fails,︉ they are holding 100% of the e-money they have issued in reserves and you will︊ be able to get your funds back.
The EMIs store their funds with other banks︋ in special Client Funds account, whose balances the bank may not use for lending. This︌ is one reason why most banks don't want to work with EMIs, since they are︍ very limited in their ability to earn money from offering bank services to EMIs.
I don't want to make it sound like EMIs are suitable for storing wealth. But it's disappointing to see so many members being so confidently incorrect. This forum flourishes when we all learn from each other.
Banks in many jurisdictions offer a deposit insurance of somewhere in range of 100,000︀ – 250,000 USD/EUR per person per bank. The exact implementation varies, but this security often︁ doesn't come from the bank but rather from the government. Banks pay into a pool︂ which is used to pay out deposit insurances, before dipping into the funds from the︃ failed bank. If a bank fails in a jurisdiction with a 100,000 EUR deposit guarantee︄ and you have 100,001 EUR in that bank, you can say goodbye that to that︅ 1 EUR.
EMIs, on the other hand, are required to maintain 100% reserves. Whatever your︆ and everyone else's balances are, they have in a bank account somewhere. This is a︇ mixed blessing. It means they can only make money from charging fees and cannot make︈ money from lending or fractional reserve banking. The upside is that if an EMI fails,︉ they are holding 100% of the e-money they have issued in reserves and you will︊ be able to get your funds back.
The EMIs store their funds with other banks︋ in special Client Funds account, whose balances the bank may not use for lending. This︌ is one reason why most banks don't want to work with EMIs, since they are︍ very limited in their ability to earn money from offering bank services to EMIs.
Nice that means they︍ are much more secure than banks. Good to know this info. I think Capital security︎ bank here also holds accounts at some Singapore banks for security. Their charges are high️ but they work with most offshore companies. Not sure about Seychelles now due to all the recent furor over them.
Well most of the banks don't want to sign up anyone with Seychelles due to all the OECD hoopla. It used to be fairly easy to get a Singapore or HK bank up till 2011 with Seychelles company but not anymore. The last I know only Al Salem bank in Seychelles was able to work with them. I think there was a Barclays Bank in Seychelles until 2014-2015 too but they stopped all their activities in Seychelles altogether.
@Sols Yes in theory your are 100% right but... eh who are we do doubt that Revolut, N26 and like follow the rules ?
(Did I hear Wirecard in the background?)
Wasn't Wirecard supposed to be 'audited' by a renowned firm and.... 4 billion went missing ?
Not saying this will happen every EMI but... I'd personally won't use these guys to hold my business money
and.. again, Revolut for example doesn't not have a number on which you can contact them on, would you seriously hold 200k on something like that ??
(Did I hear Wirecard in the background?)
Wasn't Wirecard supposed to be 'audited' by a renowned firm and.... 4 billion went missing ?
Not saying this will happen every EMI but... I'd personally won't use these guys to hold my business money
and.. again, Revolut for example doesn't not have a number on which you can contact them on, would you seriously hold 200k on something like that ??
Yes.
You are aware USDT only works because the guys being it are making it work and that all these trillions USDT are supposedly backed somewhere? The day they stop or the day something dodgy comes to the light... USDT wont' be pair 1/1 anymore with USD and all your USDT will become worthless.
You are aware USDT only works because the guys being it are making it work and that all these trillions USDT are supposedly backed somewhere? The day they stop or the day something dodgy comes to the light... USDT wont' be pair 1/1 anymore with USD and all your USDT will become worthless.
Revolut is an EMI and transitioning into becoming a bank (they have had a bank license in Lithuania pending for a long time now). If they weren't maintaining 100% reserves, the FSA in the UK would be going after them for it.
N26 has been a bank since 2016 when they obtained a bank license. That means they are not an EM I and as such as not required to maintain full reserves, which an EMI is required to do. Since N26 is a bank, they are permitted to undertake banking︀ activities.
Wirecard is a bank (not an EMI), as you may recall. Do you remember earlier when︂ I explained the difference between EMI and banks?
There is no legal requirement to have a phone number. There is a legal requirement to︅ maintain 100% reserves. I don't think you're taking a rational perspective here and letting your︆ emotions cloud your view.
I'm also not saying I would store wealth in an EMI,︇ but the answer to the question "Are EMIs required to maintain a higher reserve than︈ banks" is yes, regardless of whether you can't pick up the phone and call Revolut.︉ Do you see how those are two completely different things?
The financial services commission of the jurisdiction where the EMI is︌ licensed. In some cases, the authority requires a direct connection for real-time monitoring but more︍ commonly are monthly or quarterly checks and annual audits, and random inspections.
If an EMI︎ goes bankrupt, it means they have run out of money to meet their obligations (creditors,️ salaries). They are not permitted to dip into their Client Funds balances to pay creditors, so your funds remain safe. Creditors can take every other avenue, but they cannot go after the Client Funds.
There is no government backing, i.e. no deposit insurance. Instead, they operate on 100% reserves.
N26 has been a bank since 2016 when they obtained a bank license. That means they are not an EM I and as such as not required to maintain full reserves, which an EMI is required to do. Since N26 is a bank, they are permitted to undertake banking︀ activities.
Wirecard is a bank (not an EMI), as you may recall. Do you remember earlier when︂ I explained the difference between EMI and banks?
There is no legal requirement to have a phone number. There is a legal requirement to︅ maintain 100% reserves. I don't think you're taking a rational perspective here and letting your︆ emotions cloud your view.
I'm also not saying I would store wealth in an EMI,︇ but the answer to the question "Are EMIs required to maintain a higher reserve than︈ banks" is yes, regardless of whether you can't pick up the phone and call Revolut.︉ Do you see how those are two completely different things?
The financial services commission of the jurisdiction where the EMI is︌ licensed. In some cases, the authority requires a direct connection for real-time monitoring but more︍ commonly are monthly or quarterly checks and annual audits, and random inspections.
If an EMI︎ goes bankrupt, it means they have run out of money to meet their obligations (creditors,️ salaries). They are not permitted to dip into their Client Funds balances to pay creditors, so your funds remain safe. Creditors can take every other avenue, but they cannot go after the Client Funds.
There is no government backing, i.e. no deposit insurance. Instead, they operate on 100% reserves.
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