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what license i need to do this crypto structure

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WoWNull

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Jul 27, 2019
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Hello,
i want to know what type of license i need to implement the following‌ service

Project A
Doing venture capital or hedge fund for crypto projects

Project B
Investment company, where we will collect money from investors ( Fiat/Crypto ) and we will manage‍ the assets for buying crypto investing in crypto assets doing all these things and give⁠ them an APR % on monthly bases

what i want to know the name of⁤ the licenses it self so i can search in which country i can take it⁣

also if someone know if these can be obtain in UAE will be even much⁢ better

if someone have full details on this like of prices and capital requirements etc..︀ will be even the best option so we can have a call on this.
 
Estonia, Malta, and Gibraltar are the most mature legislations. Speak with lawyers there to see‌ if your model fits.

I think Gibraltar might be the closest match for you but‍ it's worth looking into all three.
 
Cyprus has implemented the "Crypto Asset Service Providers" l3gislayion which is ideal for your described‌ 2nd scenario.
 
Just to clarify, even though Cyprus is indeed a good jurisdictions for your business, it‌ would not fall under the CASP regime, but instead under the funds regime. As pooling‍ funds from investors to invest on the basis of a specific investment policy falls under⁠ the funds regime, not under CASPs.
 
Who will be the investors? companies, private individuals, and in which︂ jurisdictions?
What will be the average ticket size?

What is your approximate budget?
 
thanks bro i will⁠ take a lok
thanks for the suggestion, i will try to⁣ reach them this week
hmmm not sure a︀ lot of my friends they dont suggest Cyprus but i will look on it
i need to check the︄ rules about CASP and see how it does fit for me
1 - currently will be︇ private, the one we have now are from UAE and KSA, but we are not︈ limited to that.
2 - one of the investors in the waiting list are accepting︉ to provide 5M USD.
3 - no budget, we are in the research stage and︊ still we dont have a clear idea, the estimated that i have in my mind︋ around 250k USD so not sure if there is capitel required to be deposit in︌ bank or something.

dont forget these investors will send us as FIAT not crypto.
 
I did extensive research and a pilot project a year ago︂ doing exactly that regarding your Project B.

You need about a 500k Euro upfront capital︃ to start with a clear structure in EU. This composes of capital, legal, AMLO, license︄ etc.
It can be done more cheaply as well but it will be more hacky︅ and being dependent on 3d parties and their licenses.

UAE is only good if the︆ bunch of your clients are from UAE. If you dabble in EU, you need EU︇ license, if UK an UK one.
 
Can you tell me the name of these license i need⁢ to obtain and which country you choose in EU?!

for UAE its ok i can︀ do it but the issue the law still not define for crypto fund and investment,︁ so not sure if i can just do the fund to collect the money as︂ normal fund and they get a normal sell/buy crypto
then internally i do the investments︃ on our own strategy and then sell crypto to fiat and give it to client︄ if that can work then possible but not sure if that fully legal, but this︅ is the option i found yesterday in UAE if i can do it.
 
@WoWNull As long as your not personally behind the structure or involved you may make‌ progress. As you know the passport you have matters in these affairs my friend 😕.

P.S Just trying to make sure you don't waste your time.
 
well i will be involve but will not add my name to any⁠ of it T-T as you said the passport issue will just screw the things, that's⁤ why the people will be like director or main responsible and legally authorized holding powerful⁣ passport like UAE nationalities and some holding Caribbean passports.
 
Even collecting those funds⁤ in crypto? maybe the cy casp license would be necessary too to transfer the final⁣ benefits to fiat?
And what will say the CY banks to that model?
 
You mean pooling funds from investors in crypto?⁠ That would still fall under the investmebt funds regime, not under casp. However, if you⁤ would be exchanging the crypto to fiat internally i.e. acting as a crypto exchange, then⁣ a separate casp registration for this lart would potentially be required.
 
Yes, for instance, 99 people (retail⁤ investors) from my private group send $1000 each in USDT (stablecoin crypto) to one crypto⁣ wallet that I control. I send the same amount in crypto to the same wallet⁢ that I control. ALL OF THEM PASS A KYC. I use that $100.000 to sign︀ a contract and purchase tokens from a crypto project private sale with special conditions of︁ time and time of delivery. Tokens that are not launched yet, and that will be︂ launched in 60 days. Exactly as a venture capital fund does always. After those 60︃ days I start receiving the agreed tokens, and I will be receiving them during the︄ next 10 months, for instance. Each and every time I receive tokens in that mani︅ wallet, I share them with the 99 other retail investors, and they may choose to︆ sell them at the chosen Crypto Exchange at the IDO launch price or to hold︇ them. Until here, I think it is clear that it falls under the investment funds︈ regime, not under casp, but obviously, as I get a % fee from each private︉ presale i offer to those 99 members, sooner or later I will need to be︊ able to transfer that money (or part) to FIAT. So even with that separate casp︋ registration will I have problems with the bank?

By the way, thanks a lot for︌ your reply!
 
If you︉ are interested about Cyprus I am happy to discuss by PM and maybe set up︊ a call to discuss.

With respect to banks please note that in all scenarios mentioned︋ Cyprus banks are rejecting anything relating to cryptos, so you would need a foreign crypto-friendly︌ bank in any event
 
thats looks︉ interesting because i am doing the same thing but not with 99 persons but with︊ few people which they are my friends and friends like face to face people i︋ sit and talk with them.
so we didnt do any official license for such

but what we want to do to scale it where same as you that require KYC︌ etc..

but what i understand that Cyprus as @CyprusLaw mentioned banks are not crypto friendly,︍ and here where it become complicated.

in my case the large scale i want that︎ investors will send me FIAT, and from my side will buy crypto do the rest,️ back to FIAT send their shares etc..

so not sure if such can work with‌ Cyprus
 
What @CyprusLaw is sayung, is that this︂ could work, but you need to set up a fund instead and find a crypto︃ friendly bank to accomodate your requirements. It ia rather doable though, even through a Cyprus︄ set up.
 
Correct - provided you have a proper aet up there are several trustworthy foreign banks that⁠ work with Cyprus entities without issues
 
Am I right that the CY fund would pay 12.5% corporate tax on trading profits‌ if a company, but then no Cyprus dividend or witholding tax for non-resident or non-domiciled‍ investors? Else the fund can be a partnership and be tax neutral for investors?

What about book keeping if a fund trades BTC -> XRP -> ETH -> LTC ->⁠ BNB -> ADA etc? Does it have to be accounted for "per trade" in EUR,⁤ or is it enough to track the income, distributions and changes in NAV?
 
do you have a recommendation to‍ what lawyer to use?
 
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