One License, Dual Use—Save Millions: Can Canada’s MSB and Switzerland’s SRO Launch Both Fiat and Crypto Services Simultaneously?

One License, Dual Use—Save Millions: Can Canada’s MSB and Switzerland’s SRO Launch Both Fiat and Crypto Services Simultaneously?

In today’s rapidly evolving fintech landscape, combining fiat and crypto services is quickly becoming a key strategy for gaining competitive advantage. However, the traditional licensing path can be discouraging: applying separately for an Electronic Money Institution (EMI) or Payment Service Provider (PSP) license and a Crypto-Asset Service Provider (CASP) license often takes 1 – 3 years and costs millions of euros. For startups and small to medium enterprises (SMEs), the cost and complexity of compliance present significant barriers to entry.

But what if a single license could allow you to operate both fiat and crypto businesses—saving time, cutting costs, and simplifying compliance? That’s the power of the “One License, Dual Use” model. This article breaks down the pain points of traditional dual licensing and explores faster, more cost-effective alternatives such as Canada’s MSB and Switzerland’s SRO models to help you find the most suitable path to compliance.

Application and operational costs are often the biggest challenges faced by startups and small fintech companies. In this regard, the Canada MSB license offers significant advantages over financial licenses in the United States and the European Union. Its lower application fees, compliance costs, maintenance expenses, and tax benefits make it a highly competitive option for businesses aiming to expand globally.

1. Long Approval Timelinests

EMI licenses typically take 6 – 18 months, and CASP licenses under the MiCA framework require another 6 – 18 months. Even when pursued in parallel, preparing for both can take up to 3 years. In the fast-paced fintech and crypto markets, that delay could mean missing your window of opportunity.

2. Complex Compliance Requirements

To meet dual-license obligations, companies must build separate KYC and AML/CTF frameworks for fiat and crypto operations, hire dedicated compliance teams, and navigate jurisdiction-specific regulations. For example, an EMI in the EU must comply with the 5th Anti-Money Laundering Directive (5AMLD), while a CASP must meet MiCA’s enhanced disclosure obligations.

3. High Costs

EMI License: Minimum capital requirement of €350,000; legal and compliance costs of €200,000 – €500,000. Total setup: €550,000 – €850,000.
CASP License (under MiCA): €100,000 – €300,000 in licensing and setup expenses.
Combined Initial Investment: €2 – €5 million when factoring in compliance systems, company setup, and professional support.
Ongoing Compliance: €500,000 – €2 million per year for staffing, audits, and regulatory reporting.

For most startups and SMEs, this level of investment is difficult to justify and often out of reach.

This model allows companies to operate both fiat and crypto businesses under a single regulatory framework—bypassing lengthy licensing processes and significantly reducing costs. Two leading examples are Canada’s MSB license and Switzerland’s SRO membership.

Key Advantages

1. Rapid Market Entry

Canada MSB: Registration-based, typically completed in 3 – 4 months. Enables fiat remittance, foreign exchange, and crypto services such as trading and custody.
Switzerland SRO: Approval through a self-regulatory organization (SRO) under FINMA’s indirect supervision takes about 5 – 6 months—much faster than EMI or CASP licensing.

2. Unified Compliance Framework

Canada MSB: FINTRAC provides a unified AML/KYC guideline covering both fiat and crypto activities. Businesses need only one compliance officer and one compliance system.
Switzerland SRO: SROs apply a single KYC/AML policy framework for fiat payments and crypto services. This model is ideal for innovative business models like STO and DeFi.

3. Significant Cost Savings

Canada MSB: No minimum capital requirement. Legal and compliance support typically costs CAD 10,000 – 50,000. Annual maintenance: CAD 50,000 – 100,000.
Switzerland SRO: Joining a recognized SRO like VQF costs CHF 10,000 – 30,000. Compliance support ranges from CHF 50,000 – 200,000. Annual audits and operational costs are CHF 100,000 – 500,000— significantly lower than the dual-license approach

With this model, startups and SMEs can reduce compliance costs by 50%–80% and launch operations within just a few months.

While “dual licensing” may suit large enterprises with long-term global strategies, the “one license, dual use” model is clearly more efficient for teams with limited budgets and a need to launch quickly.

CryptoLicence: Your Smart Compliance Partner

At CryptoLicence, we specialize in helping you launch fiat and crypto services legally, efficiently, and cost-effectively:

✔ End-to-End Compliance Support

Canada MSB: We manage the entire FINTRAC registration, assist with bank account setup, and can even support MSB acquisition to fast-track market entry.
Switzerland SRO: From forming a GmbH or AG to customizing compliance frameworks and managing communication with FINMA and SROs like VQF, we handle the full process to maximize approval success.

✔ One-Stop Application Services

We provide comprehensive support across all stages: company incorporation, legal advice, AML/KYC policy creation, document review, audit coordination, and more. We also introduce crypto-friendly banks, EMI providers, and payment solutions to help build your infrastructure fast.

✔ Ongoing Compliance Management

Once your MSB or SRO status is secured, we continue to support your operations—covering audits, reporting, and regulatory updates to ensure you remain fully compliant.

Looking to launch your fiat and crypto business in just 1 – 6 months? Contact CryptoLicence today and start your journey toward faster, smarter compliance!

Argentina VASP Overview

Total Existing VASP License Holders: 132 entities.
Regulatory Freeze: As of May 2025, the Argentina regulator has:
1. Prohibited new VASP registrations.
2. Mandated license upgrades for all existing VASP holders.
3. Threatened revocation of existing licenses if upgrade requirements are not met.

Regulatory Uncertainty:
1. The newly introduced framework remains legally unclear.
2. No known law firm or crypto company has successfully obtained or upgraded a VASP license under the new regime.

Requirement	Notes
Legal Entity	Corporation or LLC registered in Argentina.
Address	Virtual address acceptable; however, physical address preferred.
Local Director	Fit and proper.
Compliance Officer	Fit and proper. Foreign nationals accepted.
Deputy Compliance Officer	Fit and proper. Foreign nationals accepted.
Deputy Compliance Officer	AML/CTF Policy, Business Plan, Customer and Compliant Handling Procedure, Cyber Security Policy, Manual Hand book *Must be translated to Spanish and apostilled
Capital Requirement	USD 20,000 to USD 150,000 in either fiat or stablecoins.
Tax Identification Number	Tax registration is mandatory.

Notes:

Bank accounts are not required for initial submission. The bank will only open the operational and client funds segregated accounts after the applicant is fully licensed.
Although foreign personnel are permitted in key compliance roles, retaining at least one local officer (either Director or Compliance) is strongly recommended for regulatory favorability.

Name of the firm	Notes
Becca Varela	Top tier local law firm. Handed VASP applications for Binance in Argentina.
Baker McKenzie	Top tier local law firm.
Marval	Top tier local law firm.

Unveiling the 5 Key Advantages of the Canada MSB License: The Top Compliance Choice for Startups

Unveiling the 5 Key Advantages of the Canada MSB License: The Top Compliance Choice for Startups

The Canada Money Services Business (MSB) license is a strategic key for startups and small fintech firms aiming to enter the global market. Strictly regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the MSB license covers currency exchange, international remittance, payment solutions, and virtual currency services, opening vast opportunities for innovative enterprises. Thanks to Canada’s stable economy and open fintech policies, the MSB license offers a low-barrier, high-efficiency compliance path—helping startups stand out on the global stage. This article reveals the five core advantages of the Canada MSB license and how it can accelerate your global fintech expansion.

Application and operational costs are often the biggest challenges faced by startups and small fintech companies. In this regard, the Canada MSB license offers significant advantages over financial licenses in the United States and the European Union. Its lower application fees, compliance costs, maintenance expenses, and tax benefits make it a highly competitive option for businesses aiming to expand globally.

1. Lower Application and Operational Costs

Unlike the complex and costly U.S. Money Transmitter Licenses (MTL) or EU Electronic Money Institution (EMI) licenses, the Canadian MSB license requires no large registration fees or capital requirements. For example: U.S. MTLs must be applied for state-by-state, each costing USD 1,000–5,000 with surety bonds from USD 50,000 to 1,000,000. EU EMI licenses cost ~EUR 5,000 to apply but require EUR 350,000+ in minimum capital. In contrast, the Canadian MSB license has lower application costs, no minimum capital requirements, and low monthly and maintenance fees. It is ideal for startups focused on growth.

2. Favourable Tax Policiesdocumentation

The tax environment for Canadian MSB license holders further enhances its overall cost advantage. In Canada, the general corporate tax rate is 38%, but after federal tax deductions, it is reduced to 28%, and after general tax reductions, the net federal rate can be as low as 15%. On top of this, provincial tax rates apply. For example, British Columbia (BC), a popular province for business registration, offers additional tax benefits. For example:

For Canadian-Controlled Private Corporations (CCPC), the first CAD 500,000 of eligible taxable income is taxed at a 2% provincial rate (small business rate).
Income exceeding this threshold is taxed at a 12% provincial rate (general rate).

As a result, eligible small businesses can benefit from a combined tax rate of 17% (15% federal + 2% provincial), making it one of the most competitive tax rates in North America.

Other tax highlights include:

A 25% dividend tax, typically reduced under tax treaties.
A 5% Goods and Services Tax (GST), similar to VAT, which is exempt for certain financial services, including those involving virtual payment instruments.

By contrast:

U.S. corporate taxes typically range from 21% to 27% (federal plus state), with complex interstate variations.
EU VAT rates are usually around 20%, with higher regulatory and compliance costs.

With its lower tax rates and available exemptions, the Canadian MSB license provides startups with significant financial flexibility and cost efficiency.

In the highly competitive fintech market, speed to market is crucial for startups and small fintech firms to gain a first-mover advantage. The Canada MSB license, regulated by FINTRAC, features a streamlined and transparent application process.

Businesses simply need to complete FINTRAC’s online pre-registration form and submit essential information, such as company registration documents, details of beneficial owners, and projected transaction volumes. If all documents are in order, the entire process—from company formation to license approval—can be completed within just 3 to 4 months.

This efficient application timeline provides an ideal path for global fintech companies to achieve fast-track compliance and swiftly capture market opportunities. For small enterprises, it offers a direct route from concept to market, enabling them to keep pace with evolving fintech trends.

For small and medium-sized enterprises, complex compliance requirements are often a major barrier to entering the financial services industry. The Canada MSB license offers a highly efficient compliance pathway with its simple application criteria and low maintenance costs.

The compliance framework for the MSB license is clear and straightforward, particularly regarding personnel requirements:

Only one qualified director and one compliance officer are required.
Neither needs to be a Canadian citizen or resident.
The compliance officer must simply have a solid understanding of Canadian AML and KYC regulations and be familiar with FINTRAC’s requirements.

In comparison, the U.S. MTL license requires appointing a registered agent in each operating state (usually a local resident), along with building a full compliance team—significantly increasing cost and complexity. The EU EMI license mandates establishing a physical office in the EU, appointing at least two local senior executives, and forming dedicated compliance and risk management teams—setting a much higher threshold than the Canadian MSB.

Additional requirements for obtaining a Canada MSB license include:

Registering a company (corporation or LLC) in Canada, with a local business address and registered agent to receive official correspondence.
While opening a bank account is not required for registration, a commercial bank account is needed if conducting MSB business within Canada.
Preparing and implementing AML and KYC policies in accordance with Canadian law.
Submitting a detailed business plan outlining the scope of MSB services and activities in Canada.
Filing suspicious transaction reports (STRs) with FINTRAC for any activity potentially linked to money laundering or terrorist financing.
Renewing MSB registration every two years to maintain compliance.

This lightweight compliance structure allows small businesses to meet FINTRAC’s regulatory expectations with minimal resource input—freeing them to focus on innovation and growth rather than regulatory burdens.

The Canada MSB license is strictly regulated by FINTRAC, providing startups and small fintech companies with a strong stamp of credibility that boosts trust among global investors and clients.

MSB businesses are required to comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). FINTRAC enforces strict penalties for non-compliance to ensure that MSBs maintain high operational standards and uphold market reputation.

Key penalties under the PCMLTFA include:

Penalty Type	Amount / Consequences
Administrative Monetary Penalties (AMP)	CAD 1,000 – 100,000 per violation for individuals; up to CAD 500,000 per violation for entities
Criminal Penalties	Willful violations may lead to significant fines and imprisonment
Deregistration	Serious non-compliance can result in the revocation of the MSB registration

Furthermore, starting November 2024, under the Retail Payment Activities Act (RPAA), all MSBs must register with the Bank of Canada. Failure to complete this registration by November 15, 2024 may result in penalties starting at CAD 1,000,000 and potential suspension of business activities. This added layer of oversight strengthens consumer fund protection and enhances the integrity of Canada’s payment ecosystem.

This credibility advantage helps Canadian MSB license holders gain greater acceptance in sectors like currency exchange, cross-border remittances, and crypto-related financial services—positioning them for long-term success in the global market.

The Canada MSB license supports a wide range of financial service activities, making it particularly suitable for startups aiming to diversify within the fintech space. Whether your business focuses on cross-border remittances, digital payment solutions, or cryptocurrency exchange services, the MSB license provides a legal and compliant operating framework.

Supported business activities include, but are not limited to:

This broad scope of permitted activities enables startups to adapt their service models flexibly based on market demand, test and iterate new offerings at relatively low operating cost, and evolve from traditional money services into full-fledged crypto and digital finance platforms.

Ready to scale your fintech business in Canada? CryptoLicence offers an end-to-end solution to help you efficiently obtain your MSB license and fast-track your international expansion. Our comprehensive services include:

Providing a local Canadian office address and phone number, along with registered mail handling for compliance purposes
Assisting with registration under the Retail Payment Activities Act (RPAA) with the Bank of Canada to meet the November 15, 2024 deadline
Guiding you through the process of opening a commercial bank account in Canada, including introductions to crypto-friendly banking partners
Managing the complete FINTRAC MSB registration process, including drafting AML/KYC policies in full compliance with Canadian regulations
Delivering legal advisory, documentation support, audit preparation, and ongoing compliance services to ensure your business launches smoothly and stays fully compliant

Whether you’re setting up a new operation or acquiring an existing MSB entity, CryptoLicence is your trusted partner. Contact CryptoLicence today and take your fintech venture to the next level!

Poland MiCA Update

On May 15, 2025, Poland’s Ministry of Finance released a new draft law aimed at regulating the crypto assets market. This represents a significant move in aligning Poland’s national regulatory framework with the EU Markets in Crypto-Assets Regulation (MiCA), formally known as Regulation (EU) 2023/1114. The proposed legislation outlines several key updates that directly affect Virtual Asset Service Providers (VASPs), especially those planning to apply for a Crypto-Asset Service Provider (CASP) license.

A central feature of this new draft is the formal introduction of a phased transitional period, offering registered VASPs time frame flexibility to adjust to the upcoming regulatory regime.

One of the most important elements of the draft is the implementation of a structured transitional period. Under this arrangement:

VASPs already registered in Poland’s national VASP register will be allowed to continue operating under current rules for up to four months following the date the new law enters into force.
This period can be extended to nine months, provided two conditions are met:
1. A complete application for a CASP license is submitted within three months of the law’s effective date.
2. The applicant receives a confirmation of completeness in line with MiCA requirements.

This extension is only available to entities that take early action. Companies that fail to meet these conditions will be restricted to the initial four-month allowance.

The draft also makes it clear that Poland’s current VASP Register will be officially dissolved nine months after the new law becomes effective. Companies not in full compliance or that delay preparations may risk being left without legal operating status.

According to Article 163(1) of the draft:

From the moment the law enters into force and until a decision is made either to grant or deny a CASP license (as per Article 59(1)(a) of MiCA), any entity already listed in the national VASP register may continue providing services covered under the current framework for:

Up to four months, or;
Up to nine months, if the complete CASP application is submitted within three months, and the entity receives a confirmation of completeness under Article 63(4) of MiCA.

If a company is removed from the register for any reason, these rights are forfeited regardless of the time elapsed.

Although the draft law is a significant step forward, it has not yet been officially adopted. Political factors, including recent elections, may have delayed its progress. Based on current developments, it is likely that the law will be passed in June or July 2025, but it is expected to enter into force only after the summer.

Assuming this timeline holds, the CASP licensing process may begin in Q3 2025, giving companies until mid-2026 to complete their applications and transitions under the MiCA framework.

The draft legislation not only defines the scope of the transitional period but also introduces specific circumstances under which a VASP can be removed from the register before the period expires. These provisions aim to ensure only compliant and operationally active entities continue to benefit from transitional rights.

A VASP may be delisted if any of the following apply:

1. Failure to Maintain Legal Registration

Natural persons: Lack of registration in the Central Register and Information on Economic Activity (CEIDG).
Legal entities or organizations: Absence from the National Court Register (KRS).

2. Lack of Cooperation with Supervisory Authorities

The VASP may be removed if, during the transition, it:

Fails to respond to two consecutive regulatory letters sent to its registered address;
Refuses or fails to receive notice of regulatory inspection;
Has its legal representative removed from KRS without nominating a replacement;
Has its official KRS address removed and fails to update the registry accordingly.

These rules are clearly intended to target dormant, non-transparent, or non-cooperative businesses.

3. Anti-Money Laundering (AML) Compliance Failures

If the General Inspector of Financial Information (GIIF) notifies the authority that a VASP has twice failed to fulfill obligations under Article 76, such as quarterly reporting requirements, the company may be removed from the register.

The draft introduces specific rules related to client agreements and service transparency. Under Article 5, every crypto-asset service must be delivered based on a formal written agreement supported by clear and detailed terms and conditions.

These terms must outline:

The rights and responsibilities of both the CASP and the client;
The procedures for entering and terminating the agreement;
Rules on powers of attorney, if applicable;
The format and scope of a mandatory client financial statement, which must be completed before the agreement is finalized.

While there is flexibility for some exceptions—particularly in cases where the crypto asset’s design prevents standardization—most service providers will need to implement these requirements across the board.

One area where the draft is notably vague is the client financial statement. It mandates written form but fails to define the specific content required.

In practice, a written statement typically requires a physically signed document, which can introduce delays, especially for remote onboarding. An accepted alternative is the use of a qualified electronic signature, which carries the same legal weight under Polish law. CASPs should consider incorporating electronic document management systems to streamline compliance and client experience.

Other Key Changes in the Draft

1. Reintroduction of Crypto Lending

An earlier draft had proposed a ban on crypto-asset lending, but this restriction has now been lifted. This change creates room for lending platforms and decentralized finance (DeFi) models to operate in Poland. However, all such activities must still be licensed under CASP and remain compliant with MiCA’s conduct and risk management rules.

2. Standards for Providing Crypto Advice

The draft introduces standards for individuals providing crypto-related advice or information. Only employees or contractors with sufficient knowledge and expertise in financial markets may legally offer such advice.

In cases where an individual lacks the required competency, they may still communicate such information—but only under the supervision of a qualified person, who then assumes full legal responsibility for the advice given.

Poland’s updated draft legislation signals a clear move toward a more mature and structured crypto regulatory environment. For existing VASPs and new market entrants alike, the message is clear: start preparing now.

Key steps include:

Submitting your CASP license application as early as possible (ideally within 3 months of the law’s entry into force);
Ensuring your terms and conditions and client agreements meet the new requirements;
Developing reliable electronic signature workflows to comply with written-form obligations;
Avoiding compliance risks that could trigger removal from the VASP register.

With the CASP licensing regime expected to go live later this year, proactive compliance and early application submission will be crucial for maintaining business continuity under MiCA.

Hong Kong MSO Licence Approvals Plummet—How Can You Clear the Higher Compliance Bar?

currency exchange global foreign money finance

Hong Kong MSO Licence Approvals Plummet—How Can You Clear the Higher Compliance Bar?

The Hong Kong MSO (Money Service Operator) licence is the golden key to the city’s financial market. It grants firms the authority to conduct currency-exchange and remittance business legally, carrying weight and recognition worldwide. This article explains how an MSO licence can boost your credibility in Asia’s premier financial hub, win customer trust, and unlock multiple revenue streams. It also breaks down the eligibility criteria, application process, and practical tips for coping with tighter supervision. Whether you are a cross-border e-commerce operator, a fintech pioneer, or a virtual-asset trader, mastering the value of an MSO licence will help you secure your place in Hong Kong’s thriving financial arena.

The Hong Kong MSO licence, often called the “Money-Service Provider licence”, is the passport that lets a business legally conduct currency-exchange and remittance activities in Hong Kong; its credibility is widely respected across global financial markets.

1. Major financial hub, boost your corporate credibility

As Asia’s most vibrant financial hub and the world’s top offshore-renminbi centre, Hong Kong enjoys unique advantages. Its free-port status allows funds to flow freely without exchange-control limits, making it a safe haven for global capital. About 70 % of global offshore-CNH trading volume occurs here, giving Hong Kong unmatched market depth. A mature regulatory framework, transparent public markets, and a wide array of financial products further cement its position. Holding an MSO licence therefore markedly enhances a firm’s legitimacy and competitiveness on the world stage. With cross-border FX and remittance needs surging, an MSO licence is increasingly critical to grabbing first-mover advantage and creating greater commercial value.

2. Greater customer confidence and compliance protection

Every MSO transaction is overseen by Hong Kong Customs and Excise Department (C&ED), ensuring full compliance and secure, confidential fund flows—dramatically raising client trust.

3. Streamlined process and cost efficiency

Compared with other centres, Hong Kong offers a direct, transparent application route, moderate supervisory burden, and competitive licence fees, making overall costs more predictable.

4. Diverse services and broader scope

Licence holders may provide currency exchange, remittance, and FX dealing, meeting the varied needs of cross-border e-commerce, fintech, and virtual-asset sectors.

Any individual or entity that provides currency-exchange or remittance services in Hong Kong must apply to the Commissioner of Customs and Excise for an MSO licence. The requirement covers the following scenarios:

1. Money-Changing Service

Operating a currency-exchange business in Hong Kong (excluding incidental services linked to a principal business). For example, the following are not treated as a standalone money-changing service:
• A retailer that merely takes foreign cash during a sale; or
• A hotel operator who, on the hotel premises and mainly for the convenience of guests, buys foreign currency only by paying out Hong Kong dollars.

2. Remittance Service

Carrying on, as a business in Hong Kong, any of the following:

Sending, or arranging to send, money out of Hong Kong;
Receiving, or arranging to receive, money from outside Hong Kong;
Arranging for money to be received outside Hong Kong.

The MSO licence is valid for two years. To keep operating a money-service business, you must apply for renewal from 90 days before the licence expires up to 45 days after expiry.

Financial institutions already supervised by the Securities and Futures Commission (SFC) or the Hong Kong Monetary Authority (HKMA)—such as authorised banks, licensed corporations, and authorised insurers—do not need an MSO licence.

The following strict requirements need to be met for MSO application:

1. Company requirement – A Hong Kong-incorporated limited or unlimited company, or a registered branch of an overseas company. MSO license holder may be residents or non-residents, and shareholders may be individuals or corporates.

2. Paid-up capital – The company must have a minimum paid-up capital of HKD 500,000, with a legitimate and traceable source of funds.

3. Fit-and-proper test – At least one director, along with all shareholders and ultimate beneficial owners (UBOs), must pass a fit-and-proper assessment conducted by the Hong Kong Customs and Excise Department (C&ED).
Applicants are required to submit a police clearance certificate (criminal record check), recent bank statements, and a fit-and-proper person declaration form, which must be signed in the presence of an authorised witness (such as a C&ED officer, practicing lawyer, accountant, auditor, or notary public).neligibility: Any individual or entity that has a criminal record, is bankrupt and not yet discharged, or is managed by such individuals, will not qualify.

4. Business premises – A real office in Hong Kong, evidenced by a stamped tenancy agreement and approved by C&ED. A residential address may be accepted with written consent from all occupants plus title or lease documents. If there is no dedicated premises, a Local Management Office may be appointed for record-keeping and is subject to on-site inspection.

5. Documentation – Applicants must submit:

Business Registration Certificate, Articles of Association, personal particulars of all directors, shareholders, partners, and UBOs
Detailed business plan covering services, target markets, and risk controls
AML and IT policies, plus board/partner authorisations

6. Interview and capability assessment – Applicants must demonstrate operational readiness and compliance capability to C&ED. This includes a beta version demo of the company’s website or app, showcasing how the platform supports money-changing, remittance, and related services in a manner compliant with AML and KYC requirements. C&ED will assess the system’s stability and compliance measure.
In addition, the applicant must attend a face-to-face interview, where C&ED will verify the authenticity of submitted materials, assess the feasibility of the business plan, evaluate the professionalism of the management team, and test the applicant’s understanding of regulatory obligations.
Final approval depends on both the interview performance and system demonstration.

1. Business model matters

Low-value, over-the-counter cash exchange has modest risk and faces fewer hurdles. Online models—especially high-frequency, high-value funds flows (cross-border payments or virtual-asset transactions)—must evidence strong AML controls, making approval far tougher. Banks classify money-service businesses as high-risk for laundering, so opening accounts is challenging without prior banking pedigree.

2. Tougher supervision

Demand for licences has surged among cross-border e-commerce, fintech, and virtual-asset firms. To align with global AML norms under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), C&ED has tightened standards, creating a “one-licence-hard-to-get” climate. Since 2023, applications soared while success rates fell; as of May 2025, only about 1,100 firms hold valid licences.

Specific pain points:

Higher rejection rate – zero tolerance for non-compliance. Common reasons: incomplete documents, vague business plans. Background checks seek to stop speculators who plan to flip licences or lack three-year funding to operate.
More documentation – business plans, AML/KYC frameworks, financials, shareholder profiles—more types, greater complexity.
Rising compliance costs – external consultants, monitoring systems, staff training, especially heavy for SMEs.

Given the high bar and complex process, engaging a specialist team is vital. CryptoLicence offers an end-to-end solution. With years of proven success, we understand every nuance of C&ED procedures and ensure full compliance with the AMLO. Our services cover company incorporation, meticulous document preparation, bespoke AML/KYC policies, transaction-monitoring systems, legal advice, office setup, and ongoing compliance, minimising errors and maximising approval odds.

We provide transparent cost estimates (consultancy, legal, and supplementary documents) to help you budget accurately. By streamlining each stage, we can secure your MSO licence within 7–9 months, giving you a head start in the market.

Pain Points in the Crypto Market: How to Overcome Bank-Account Bottlenecks and Card-Issuance Hurdles?

hand pointing glowing digital american dollar interface hologram

Pain Points in the Crypto Market: How to Overcome Bank-Account Bottlenecks and Card-Issuance Hurdles?

The rapid growth of blockchain technology and cryptocurrencies is reshaping global finance. Yet in today’s tighter regulatory climate, securing a licence is only the first step toward lawful operation. For virtual-asset service providers (VASPs), a licence alone does not guarantee business readiness: opening bank accounts, integrating payment rails, issuing crypto cards, and stress-testing systems remain thorny milestones. Multi-currency or “crypto-friendly” business accounts are routinely declined, card-issuance projects stall on compliance grounds… and market-entry windows close. If you are wrestling with those roadblocks, read on. This article unpacks the banking and card-issuance challenges that VASPs face before launch—and shows how CryptoLicence leverages global resources and expert support to steer you through.

Turning regulatory approval into competitive advantage requires clearing a chain of critical stages. Below is a streamlined roadmap from licence application to go-live, highlighting each phase’s main task set.

1. Apply for a crypto-asset licence

Submit to the relevant authority (e.g., Dubai VARA, Switzerland’s FINMA), meet AML/CTF and other requirements, and obtain VASP or SRO status.

2. Prepare compliance documentation

Draft AML/KYC frameworks, file a detailed business plan, prove source of funds, and present risk-management measures for regulatory review.

3. Open bank accounts

Secure multi-currency accounts (USD, EUR, GBP, etc.) for treasury, settlement, and client funds.

4. Set up payment channels

Connect to Visa, Mastercard, or crypto on/off-ramp providers via APIs for seamless fiat–crypto transactions.

5. Issue crypto cards

Partner with a card issuer (e.g., a Visa principal member) to launch debit or prepaid cards that spend crypto balances effortlessly.

6. Test and optimise systems

Rigorously test account, payment-gateway, and card platforms for security, stability, and zero-fault performance.

7. Go live

Roll out exchange, custody, or payment services, refine user experience, and capture market share.

Once a licence is in hand, banking is the linchpin of actual operations. Yet the very nature of crypto firms triggers multiple layers of resistance.

1. Banks’ Cautious Stance toward Crypto

Current situation: Because crypto businesses involve pseudonymous transactions, high price volatility, and potential money-laundering risks, banks classify them as high-risk. Global watchdogs such as the FATF require banks to apply enhanced due-diligence (EDD) procedures to VASPs.

Pain point: Many large traditional banks take an even more cautious stance—either refusing outright to open accounts for VASPs or demanding an extensive compliance file that includes detailed fund-flow proof, full customer-identity records, and comprehensive operating reports.

Impact: Companies may compile hundreds of pages of documentation over several months, yet still face rejection, limiting their cash-management options and stalling business growth.

2. High Compliance Barriers

Current situation: Banks must observe strict international AML and CFT rules as well as local regulations. They expect crypto firms to prove that their funds are legitimate, their business model is transparent, and their risk-management programme is comprehensive.

Pain point: Many start-ups and SMEs lack a dedicated compliance team and therefore struggle with the complex paperwork and multiple review cycles that banks demand. Preparing the file is costly and time-consuming.

Impact: Account applications are rejected for incomplete or non-conforming documents—or drift into indefinite postponement—directly choking cash flow and stalling market expansion.

3. Restrictions on Multi-Currency Accounts

Current situation: VASPs typically need multi-currency accounts that can hold USD, EUR, JPY, CHF, AUD, HKD, and more—both to hedge FX risk and to receive or pay in a client’s native currency.

Pain point: Standard multi-currency accounts rarely permit crypto activity. Fiat-to-crypto (on-ramp) and crypto-to-fiat (off-ramp) flows require extra compliance clearance, causing many banks to refuse these accounts. Virtual sub-accounts—multiple currency-enabled wallets under one master account—are even harder for crypto firms to secure because banks worry about fund-tracing complexity.

Impact: Without multi-currency accounts, crypto businesses cannot satisfy diverse global payment preferences, limiting flexibility and eroding competitive edge.

Issuing crypto cards is a pivotal strategy for VASPs to boost user experience and broaden market reach, yet the road is rocky—from the card schemes’ strict vetting and high technical-compliance bar to the practical hurdles of rolling out effective marketing campaigns.

1. Risk Assessment by Card-Issuing Networks

Current situation: Visa, Mastercard, and their issuers are wary of opaque fund sources and illicit-trade exposure; strict AML/CTF rules apply.

Pain point: A crypto card must bridge blockchain wallets and legacy networks, raising compliance complexity. Issuer due-diligence cycles span 2–3 months; direct scheme approvals can stretch to 6–12 months or more.

Impact: High risk thresholds delay or derail projects; many firms abandon card plans altogether.

2. Technical & Compliance Requirements

Current situation: A crypto-card programme must satisfy the card scheme’s compliance standards—PCI-DSS, KYC/AML, EMV chip specifications—and integrate a payment engine that converts crypto to fiat in real time.

Pain point: Most start-ups and SMEs lack the resources to build secure blockchain-payment APIs or pass PCI-DSS audits; limited technical bandwidth drives up integration costs and stretches timelines.

Impact: The twin hurdles of technology and compliance slow card-launch projects; while white-label solutions cut code complexity, the stringent regulatory layer still causes many firms to hold back.

3. Marketing Execution for Crypto Cards

Current situation: Crypto cards attract users through friction-free spending, brand visibility, and wider market reach. In an increasingly competitive space, however, success hinges on finely targeted campaigns aimed at specific segments—for example, crypto investors or blockchain enthusiasts.

Pain point: Crafting incentives that genuinely resonate—crypto-cashback, trading-fee discounts, and similar perks—must balance technical feasibility with implementation effort. Building an on-chain loyalty programme or integrating wallet apps requires significant investment, so costs and expected impact must be carefully weighed to keep ROI positive.

Impact: Without a professional, data-driven marketing strategy, user engagement remains low, market share for the crypto card stays limited, and marketing spend delivers less-than-expected returns.

Leveraging a worldwide network and deep professional expertise, CryptoLicence helps you quickly establish bank accounts and payment rails that work seamlessly with crypto operations. We match you with the most suitable banks and card-payment solutions, turning regulatory compliance into a real competitive edge.

Our team has in-depth knowledge of key markets—Hong Kong, Singapore, Malaysia, Europe, and North America—and delivers bespoke compliance strategies for businesses everywhere. We also help you obtain multi-currency accounts efficiently, so you can receive customer funds, remit to foreign-currency accounts, pay overseas staff, and more.

If you plan to launch a crypto card, CryptoLicence offers two Visa-authorised programmes:

MPI licence holders: USDT top-ups, settled in HKD
MSO licence holders: USDT and USDC top-ups, settled in SGD
USD-denominated cards: available case-by-case, subject to issuing-bank approval

Card Fee Schedule:

Types	MPI licence holder (Visa Principal)	MSO licence holder (Visa Principal)
Authorised Network	VISA	VISA
Set-up Fee	USD 20,000	USD 18,000
Monthly Fee	USD 1,000	From USD 7,000
Physical Card Cost	USD 10 per card	USD 6 per card (minimum order 1,000)

All fees are indicative only and may be adjusted by the issuing bank or in response to regulatory requirements.

Companies should choose the card-issuance programme that best fits their target customers and market strategy to achieve maximum impact, and CryptoLicence can supply the in-depth expertise you need. Contact CryptoLicence today for a free consultation and unlock a one-stop solution that propels your crypto venture to the front of the market!

This article is for industry reference only and does not constitute legal or investment advice. For tailored compliance plans, please consult a qualified professional.

Ready-Made Crypto Licenses: Save Time and Fast-Track Your Compliance and Market Expansion!

Ready-Made Crypto Licenses: Save Time and Fast-Track Your Compliance and Market Expansion!

In the ever-changing world of cryptocurrency, every second counts. A moment’s delay could cost you billions in opportunities! For Virtual Asset Service Providers (VASPs), holding a license isn’t just the foundation of compliance, it’s also a powerful tool to build brand credibility and earn the trust of clients and partners.
The lengthy and complicated licensing process should not hold you back from entering global markets! By choosing a ready-made cryptocurrency license from CryptoLicence, you can launch compliant operations at record speed, seize the market opportunity, and secure your success!

For financial entrepreneurs aiming to enter the crypto market quickly and with minimal risk, ready-made licenses offer a strategic advantage. These pre-prepared licenses come with full legal compliance and financial stability, along with the convenience of immediate operation, helping you quickly establish a presence on the international stage and accelerate long-term business growth. Here are the three key benefits of ready-made licenses:

Applying for a crypto license often takes at least a year, involving complex legal reviews, strict compliance checks, and technical infrastructure setup. Take Dubai’s VARA as an example: the application process requires submitting extensive documentation such as a business plan, financial projections, and technology infrastructure design, with extremely high regulatory standards — even well-prepared applicants face a risk of rejection.

A ready-made license has completed all preliminary work — it’s ready for immediate use! Handover can be completed within just 2 to 4 months, allowing you to start operations immediately. This dramatically shortens the time from concept to market launch, giving you a critical edge in the fast-moving crypto world.

Ready-made licenses are carefully prepared by professional teams to meet major global regulatory standards. You won’t need to navigate complicated application steps or worry about rejection from regulatory bodies.

By purchasing a ready-made license, you directly acquire a 100% legally compliant operational status, allowing you to focus fully on business development. Even better, some licenses come with established bank accounts, local teams, or even an existing client base and mature partnerships — saving you not only application time but also valuable resources needed for post-setup operations.

Self-applying for a license is not only time-consuming but can also lead to high and unpredictable costs as compliance requirements change.

Ready-made licenses offer one-time transparent pricing, eliminating hidden costs and helping you easily manage your finances. This allows you to focus your resources on key areas like marketing, product development, and global expansion.
Choosing a ready-made license eliminates market entry barriers, significantly reduces time costs, and injects powerful momentum into your business growth.

A ready-made cryptocurrency license is the perfect choice for companies seeking speed, compliance, and market competitiveness. Tailored for teams looking to rapidly expand into the global crypto market, it helps you bypass tedious application processes and quickly seize first-mover advantages.

Here are six types of businesses and scenarios best suited for ready-made licenses:

Teams Needing Rapid Entry

Ready-made licenses are ideal for Web3 projects, virtual asset platforms, payment institutions, and any teams urgently needing to launch operations. If you already have clients, partners, or key transaction opportunities lined up, purchasing a ready-made license lets you start operating within months, seizing fleeting market windows.

Companies with Sufficient Budget

Ready-made licenses typically involve higher upfront costs, making them suitable for businesses with strong budgets and a focus on efficiency. If you’re ready to invest in building market competitiveness quickly, a ready-made license can save you months or even years of preparation.

Overseas Enterprises Unfamiliar with Local Regulations

Chinese or Southeast Asian companies expanding into regions like Europe (e.g., Poland VASP) or the Middle East (e.g., Dubai VARA) may struggle with local regulatory complexities and language barriers. Long waits for document translations, embassy notarizations, and other procedures can delay operations — but a ready-made license significantly simplifies the process for fast, compliant entry.

Businesses Facing Policy Changes or Stricter Reviews

Regulatory landscapes change rapidly. Some licenses may become harder to obtain due to tightened requirements or suspended approvals — as seen with Hong Kong’s MSO licensing freeze or the EU’s MiCA regulations increasing application difficulty. Acquiring a ready-made license in advance helps you avoid regulatory risks and secure scarce resources ahead of competitors.

Startups and Entrepreneurial Teams

Early-stage teams often struggle to meet regulatory requirements for KYC/AML systems, business plans, or IT infrastructure — leading to frequent application rejections. With a clean-record ready-made license, you can immediately launch legitimate operations and focus on product development and market expansion.

Teams Needing License Endorsement for Business Negotiations

Holding a license is a strong credibility endorsement, often required for opening bank accounts, forming partnerships, or signing agreements. A ready-made license gives you greater leverage at the negotiation table, helping you quickly win partner trust and boost your brand credibility.

Whether you are a startup or a multinational group, CryptoLicence offers a wide variety of ready-made licenses, including Canada MSB licenses, Mauritius Investment Dealer licenses, Vanuatu Financial Dealer licenses, and more — flexibly matching your global strategy.

If you want to sell a license, CryptoLicence can also match you with buyers!
Prefer to apply for a new license yourself? Our professional team can tailor a bespoke licensing plan, helping you streamline complex procedures, control costs and timelines, and achieve compliance smoothly.

Don’t let complicated procedures block your crypto ambitions!
Contact CryptoLicence’s expert team today to get your personalized solution and fast-track your global market expansion!

Why Is Switzerland the Industry’s Top Choice? 3 Key Advantages That Attract Crypto Players

Amid the global crypto boom, Switzerland has emerged as a premier destination for Virtual Asset Service Providers (VASPs), thanks to its unmatched regulatory strengths. Its robust legal framework, low entry barriers, and efficient compliance mechanisms have made Swiss licenses particularly attractive. Here are three key advantages that reveal why Switzerland is the ideal launchpad for your crypto future:

As a global financial benchmark, Switzerland has gained international trust through a transparent and stable regulatory system. For VASPs, holding a Swiss license not only quickly establishes industry credibility but also lays a strong foundation for global expansion.

At the heart of this advantage is Switzerland’s comprehensive and multi-layered regulatory framework, built upon the Swiss Financial Market Supervisory Authority (FINMA) and the Federal Act on Combating Money Laundering and Terrorist Financing (AMLA). The high regulatory bar lends Swiss licenses exceptional credibility, making them a “seal of trust” in the financial world.

Regulatory Core: AMLA and FINMA

AMLA is the cornerstone of Switzerland’s anti-money laundering (AML) regime, requiring all financial intermediaries to carry out rigorous Know Your Customer (KYC) checks and file Suspicious Activity Reports (SARs).

FINMA, the key enforcement body, oversees banks, asset managers, and other financial entities to ensure compliance with world-class AML standards. It has broad enforcement powers, including fines, corrective orders, trading bans, and license revocation—ensuring airtight compliance.

Detailed Regulations: AMLO and AMLO-FINMA

The precision of AMLA is further reinforced through subsidiary regulations:

AMLO (Ordinance of the Federal Council on Combating Money Laundering and Terrorist Financing): General rules for all financial intermediaries.
AMLO-FINMA (FINMA’s AML Ordinance): Specific rules for institutions directly supervised by FINMA, such as real-time monitoring of high-risk transactions.

This layered regulatory design ensures comprehensive oversight with no blind spots.

New Regulations: FinSA and FinIA

Following the global financial crisis, Switzerland unified its regulatory requirements under the principle of “same business, same risks, same rules” to ensure fairness and rigor. The Financial Services Act (FinSA) and the Financial Institutions Act (FinIA) came into force in January 2020, forming the core of Switzerland’s modern financial market framework.

FinSA governs conduct of business, including identity verification during client onboarding, aligning with AMLA’s KYC requirements.
FinIA outlines licensing and supervision for financial institutions, mandating internal compliance systems in line with AMLA.

Together, these ensure thorough regulatory coverage.

Tripartite Supervision: FINMA, SOs, and Institutions

Under FinIA, Switzerland introduced a unique tripartite supervision model, involving:

FINMA (licensing and enforcement)
Supervisory Organizations (SOs) (daily oversight)
Regulated Institutions (compliance responsibilities)

This collaborative structure combines efficiency and rigor.

Dual-System: FINMA + SRO

For smaller entities not directly supervised by FINMA, Switzerland uses Self-Regulatory Organizations (SROs), which are authorized and overseen by FINMA. SROs monitor members’ compliance with AMLA and AMLO, and report violations to FINMA. Under FinIA, SROs also play a regulatory role in portfolio management, and their members must follow FinSA conduct standards.

This “FINMA + SRO” dual system ensures tight regulatory control at every level.

In short, the credibility of Swiss licenses stems from a comprehensive legal system led by AMLA and FINMA. From detailed AML rules (AMLO, AMLO-FINMA) to modern regulations (FinSA, FinIA) and efficient oversight mechanisms (tripartite supervision, SROs), Switzerland has built a multi-layered, airtight compliance network. For VASPs, this represents not just high compliance standards, but a globally recognized badge of trust.

Compared to the EU, Switzerland offers significant entry-level advantages for VASPs. It has lenient capital requirements—small firms only need CHF 100,000 in minimum capital, with just CHF 50,000 paid upfront, far lower than the hundreds of thousands of euros often required under the EU’s Markets in Crypto-Assets (MiCA) regulation.

Even more crucially, as a non-EU country, Switzerland is not bound by MiCA, avoiding its heavy compliance burden. This gives VASPs greater operational flexibility and cost advantages.

Moreover, Switzerland allows financial intermediaries to trade on behalf of both themselves and their clients—a right that, under EU rules, requires a CHF 750,000 capital reserve. This combination of low thresholds and policy freedom accelerates market entry, making Switzerland the ideal choice for VASPs seeking a fast and flexible start.

Among the various licensing options in Switzerland, SRO membership stands out for its convenience—making it the go-to choice for VASPs. Compared with FINMA licenses or the EU MiCA regime, SROs offer:

Fast-track compliance: Take VQF (Financial Services Standards Association) for example—an SRO authorized by FINMA. The entire application process takes just 4–5 months, much faster than the ~1 year for FINMA or 6–12 months under MiCA, giving VASPs a vital head start.
Low entry cost: Initial costs are just a few thousand CHF—VQF’s joining fee is about CHF 5,000, with flexible annual fees. This is significantly cheaper than FINMA’s CHF 100,000+ or MiCA’s high six-figure euro requirements.
Convenience without compromising credibility: Though SRO licenses are known for their ease, they don’t compromise on compliance. Supervised by FINMA and aligned with AMLA standards, SRO members enjoy global recognition for their regulatory integrity.
Smooth scalability: As VASPs grow, their strong compliance base under an SRO allows seamless upgrade to direct FINMA regulation—avoiding the need to restart the licensing process from scratch, unlike MiCA’s heavy reapplication process.

SROs combine low cost and high efficiency, significantly reducing barriers for entry. They offer a stress-free compliance path—ideal for SMEs looking to launch operations quickly.

Contact Us Now to Obtain Your Swiss SRO Membership!

In short, Swiss licensing offers strong credibility through strict regulations, low barriers and regulatory flexibility for smooth market entry, and it’s fast, affordable compliance via SROs. Together, these make Switzerland the ultimate springboard for VASPs entering the global crypto market.

Want to learn more about Swiss SRO membership? Get in touch with your European crypto and financial licensing expert—CryptoLicence!

A Clear Guide to Onshore vs Offshore Licenses – Which One Is the “Ace Card” for Your Crypto Business?

As a Virtual Asset Service Provider (VASP) with ambitions to conquer the global market, stepping into the cryptocurrency arena means your very first move must be securing a legal “pass” — a license. But choosing the right license is like making a high-stakes bet. With so many options, it’s easy to feel overwhelmed. Offshore licenses are low-cost and flexible, while onshore licenses carry authority and credibility. But which is better? Which one is the best fit for your business strategy?

This article offers a clear and concise comparison between offshore and onshore licenses, helping you navigate the crypto waves and pinpoint the “ace card” that matches your business goals.

Whether you’re launching your crypto business in any corner of the world, you’ll need either an onshore or offshore license — this is the most crucial step in your journey.

Onshore Licenses are issued by major economies or well-established jurisdictions like the United States, European Union, Switzerland, and El Salvador.
Offshore Licenses are issued by offshore financial centers such as the Seychelles or the Cayman Islands.

Put simply:

Onshore = Authoritative Pass
Offshore = Flexible Shortcut

Let’s quickly compare the two across key dimensions:

Geography and Jurisdiction

Onshore licenses come from global economic hubs with strong legal systems and international influence, providing a solid operational foundation. Imagine the VARA license in Dubai or the MiCA framework in the EU — they aren’t just symbols of compliance, but golden keys to global financial markets.

Offshore licenses, however, are often issued in smaller, remote financial centers with little international clout. Their legal frameworks are typically tailored to attract foreign capital but lack recognition in mainstream markets. Think of them as flashy but fragile name cards, which can limit a company’s global ambitions.

Regulatory Rigor

Onshore licenses are backed by strict regulations — AML, KYC, CFT, etc. While compliance is demanding, it brings high transparency and legal integrity. Regulators like the U.S. SEC or Swiss FINMA push firms to build robust risk control systems, keeping them away from legal pitfalls and ensuring sustainable growth.

Offshore licenses are known for “low barriers” and often lack substantial oversight. This “easy entry” illusion can be risky — firms may be labeled as “unreliable” or “high risk.” In an era of tightening global regulations (e.g., FATF Travel Rule), offshore licenses may become ticking time bombs of compliance crises.

Application Cost and Time

Onshore licenses typically cost tens of thousands of dollars and may take several months to over a year to obtain. While costly and time-consuming, they offer high-quality regulatory endorsement and access to key markets — a worthwhile long-term investment, especially when attracting big clients or raising capital.

Offshore licenses are cheaper (from a few thousand to tens of thousands of dollars) and can be approved in weeks or months. But the low price comes at a cost — weak regulatory backing often forces companies to later apply for onshore licenses, leading to wasted time and money. What seemed like a bargain becomes an expensive lesson.

Market Credibility and Client Trust

Onshore licenses serve as “golden signs” of trust in the market due to strict regulation and prestigious origin. For example, a VASP with a New York BitLicense can easily attract institutional investors and partner seamlessly with banks.

Offshore licenses, by contrast, often raise red flags due to lax regulation and regional reputation issues. Clients may question their legitimacy, and banks might refuse to cooperate. A Seychelles-licensed firm trying to enter the U.S. market is often seen as a high-risk “intruder,” undermining trust.

Tax Implications

Onshore licenses require firms to pay local taxes — the burden may be heavy, but they offer strong compliance protection and shield against surprise international tax audits. Transparent tax policies also allow legal cost optimization through incentives (e.g., El Salvador’s RPSAD), making long-term operations more predictable.

Offshore licenses often offer low or zero tax, which seems attractive at first. But they can trigger tax investigations under CRS, FATCA, or land the firm on “tax haven” blacklists. This adds compliance burdens and hinders partnerships, turning sweet savings into bitter trouble.

Ideal Use Cases

Onshore licenses are tailored for businesses targeting specific markets, institutional clients, or long-term growth. For instance, a company wanting to launch crypto trading in El Salvador can use a DASP or BSP license to penetrate the local market, deeply integrate with the financial system, and gain a strategic edge.

Offshore licenses are best for startups or short-term projects, especially those serving retail customers without local presence. But as the business grows, their shortcomings become clear — they fail to meet regulatory expectations of mainstream markets, forcing restructuring and adding uncertainty. It’s like building a skyscraper on sand.

Onshore licenses stand out for their authority, stability, and market competitiveness — they’re the foundation for a sustainable crypto business. Offshore licenses, while convenient short-term, suffer from low trust, high risk, and long-term uncertainty.

If your goal is global, stable growth, onshore licenses are the real “ace card.”

But securing an onshore license isn’t a walk in the park — it’s more like a marathon that requires patience and strategy. Take El Salvador’s BSP and DASP licenses for example. VASPs face multiple hurdles:

High cost and time investment: Think of it as a “money-burning game” — legal advice, compliance systems, application fees… all stack up to tens of thousands of dollars. Approval may take months to a year, delaying your business plan. The dual pressure of time and money tests both patience and budget.
Strict compliance requirements: AML, KYC, cybersecurity, and more — not just checkboxes, but full compliance programs that must be built with care. El Salvador even requires external audits and quarterly reports — miss a step and all previous work could be wasted.
Local presence requirements: To get licensed, you’ll need a local company in El Salvador, navigate legal/admin steps, and hire a compliance officer and deputy. For foreign operators, this isn’t just technical — it’s resource-intensive. Recruitment and training add substantial cost and effort.
Language and culture barriers: All documents and communication for El Salvador licenses must be in Spanish — for non-Spanish-speaking VASPs, it’s like navigating through fog. Miscommunication can lower efficiency or lead to critical mistakes. A translation team or local partner is a must.
Regulatory uncertainty: Crypto regulation is still maturing. Lack of clarity and opaque procedures mean any misstep could require costly corrections or restarting the entire process.

Yes, onshore licenses are the “authoritative pass,” but the challenges can make even the boldest VASP sweat. That’s why you need a seasoned license expert — a guide who’s also a problem-solver.

From process navigation and cost optimization to building compliance systems and overcoming language barriers, a professional team helps you stay on track and avoid detours.

How We Support You at Cryptolicence:

Process Guidance: Our experts understand local regulations and streamline complex application steps. We clarify the full timeline and help you align licensing with your business goals.
Document Preparation: We draft and review compliance documents like AML and KYC policies to ensure full regulatory accuracy and smooth approvals.
Local Support: With a strong local partner network, we help you register companies, hire compliance officers, open bank accounts, and solve logistical issues — all in one place.
Language & Cultural Support: We remove the language barrier, handle Spanish translations, and offer localization support so every communication is smooth and effective.
Risk Management: Our compliance professionals from Mainland China, Hong Kong, Singapore, Malaysia, and beyond bring deep financial knowledge and have completed over 70 global license applications — minimizing your risk of rejection or delays from regulatory misunderstandings.

Choosing an onshore license paves the way for the future. Choosing expert support secures the now.

Are you ready for this challenge?

Contact Cryptolicence today and get your onshore license with ease!

El Salvador Revokes Bitcoin’s Legal Tender Status! Are DASP and BFP Licenses Still Appealing?

El Salvador, once a trailblazer unafraid to break conventions, became the first country in 2021 to adopt Bitcoin as legal tender. However, under strong pressure from the International Monetary Fund (IMF)—tied to a US$1.4 billion loan—this bold “cryptocurrency experiment” was put on hold. On 29 January 2025, El Salvador officially revoked Bitcoin’s legal status. At first glance, this might appear to be a “step backward,” sparking questions: Will El Salvador’s meticulously built crypto ecosystem collapse? Can it still hold its ground in the global crypto wave? Let’s delve into the logic behind this change and glimpse the boundless potential that lies ahead.

Although El Salvador is one of the smallest countries in Central America, under President Nayib Bukele’s leadership it ignited a cryptocurrency revolution. Besides the audacious move of designating Bitcoin as legal tender, El Salvador also introduced a series of initiatives to create a crypto-friendly ecosystem:

Established the National Bitcoin Office (ONBTC): Tasked with overseeing all crypto-related projects.
Developed the Chivo wallet: Rolled out 200 ATMs nationwide supporting Bitcoin exchanges, making it easy for anyone to join the crypto economy.
Daily Bitcoin purchases: So far, the country has amassed 6,119.18 BTC in reserves. Bukele famously declared in 2022, “We will buy one Bitcoin every day until we can no longer afford it!”
Volcano-powered Bitcoin mining: Leveraging geothermal energy from state-owned power plants with 300 mining rigs. So far, around 473.5 BTC have been successfully mined.
Proposed issuing US$1 billion in ‘Volcano Bonds’ to fund a visionary “Bitcoin City.”
Launched an ‘Investment for Citizenship’ program: By investing US$1 million in Bitcoin or USDT, one can obtain El Salvadoran residency or citizenship.

From establishing dedicated agencies and building out infrastructure, to stockpiling BTC, mining with volcano power, issuing bonds to fill the national coffers, and offering innovative investment programs to attract the world’s attention—El Salvador has effectively joined the ranks of a new-era financial hub.

Even though El Salvador’s crypto policies have been controversial—and it recently revoked Bitcoin’s legal tender status—its carefully crafted crypto ecosystem has not disappeared. Quite the opposite: these endeavours have established El Salvador’s extraordinary reputation, with “Bitcoin” becoming its hallmark and drawing global investors’ gaze.

On January 13 this year, stablecoin giant Tether made a major announcement: after securing its Digital Asset Service Provider (DASP) license, the company would move its headquarters to El Salvador. Why here? Tether cited the country’s forward-looking policies, favourable regulatory environment, and a growing Bitcoin community—making El Salvador an ideal destination for companies leading the digital finance revolution. By embracing blockchain technology and digital currencies, El Salvador is cultivating an ecosystem that fosters innovation and welcomes investment. Not only is it quietly reshaping the future of finance, it’s also solidifying its position as a key global fintech player.

And Tether is not the only one. Bitcoin mining pool OCEAN has long since relocated its global headquarters to El Salvador, extolling its enormous potential as a hub for Bitcoin business innovation.

Bitcoin transactions in El Salvador also remain brisk. Whether local or foreign consumers—at shopping malls, hotels, roadside stalls, McDonald’s, Walmart, or even gas stations—daily trading volumes often exceed thousands of transactions.

Cathie Wood, founder of ARK Invest (nicknamed “the Wood Woman”), has praised President Bukele for using Bitcoin and AI to advance economic and educational reforms, predicting that in his current five-year term, El Salvador’s GDP may expand tenfold. Silicon Valley venture capital pioneer Tim Draper, founder of Draper Associates, has also lauded El Salvador’s embrace of Bitcoin, saying the country could become one of the world’s most affluent and innovative nations in 30 or 40 years.

Moreover, since the European Union’s MiCA regulations took effect, El Salvador’s crypto-friendly environment has become highly attractive to Virtual Asset Service Providers (VASPs). Far from being just a Bitcoin testing ground, El Salvador is rapidly evolving into a true “oasis” for the future of crypto.

For crypto businesses looking to expand, El Salvador is not just “crypto-friendly” in name; it also boasts substantial, concrete advantages.

Affordable license application costs: The minimum share capital requirement can be as low as US$2,000—yes, you read that correctly! This “low-pressure” entry stands in stark contrast to markets where thresholds can run into tens of thousands of dollars, making El Salvador a potential paradise for small and medium-sized businesses.
Tax exemptions for crypto companies: By registering with the Registry of Digital Asset Service Providers (RPSAD), you can enjoy a “zero tax” policy tailored to crypto businesses:
- Full exemption from corporate income tax: Ordinary companies face a 30% rate, but crypto firms pay none—profits are all yours!
- No tax on digital asset gains: Whether from buying, selling, transferring, or holding digital assets, both capital gains and regular income are untaxed.
- Exemption from goods and services tax: Digital asset transactions are exempt from taxes on the transfer of goods and services. Issuers, certifiers, and service providers also enjoy “zero” tax burdens.
- Waiver of withholding taxes: RPSAD-registered companies are not required to withhold tax on transactions, freeing up cash flow.

El Salvador offers two types of licenses—Bitcoin Service Provider (BSP) and Digital Asset Service Provider (DASP). Think of BSP and DASP licenses as two different “players” in the field. Here’s a quick comparison:

1. Service Scope: Specialized vs. Diverse

BSP License: Geared exclusively toward Bitcoin-based services. It allows you to provide Bitcoin-fiat exchange, payment processing, and custody—ideal for companies focused solely on Bitcoin.
DASP License: Offers a broader range of services. Beyond Bitcoin, it covers Ethereum, Litecoin, and more, including trading, custody, derivatives, and even stablecoin issuance. Perfect for companies aiming to be a “jack of all trades.”

2. Regulating Body: Central Bank vs. Specialized Committee

BSP License: Regulated by the Central Reserve Bank (BCR), with an approval process focused on stability in the Bitcoin ecosystem.
DASP License: Overseen by the National Digital Assets Commission (CNAD), covering a wider scope and emphasizing the compliant development of the entire digital asset market.

3. Use Cases: Niche vs. Comprehensive

BSP License: Reflects El Salvador’s “Bitcoin Nation” identity, suitable for those exploring opportunities in Bitcoin payments or remittances.
DASP License: Better for businesses with more ambitious, diversified offerings—exchanges, wallet services, or projects looking to launch new tokens can tap into altcoin or broader blockchain trends.

4. Application Process: Streamlined vs. Flexible

BSP License: Takes about 5.5 months, with a more streamlined procedure—ideal for businesses wanting a faster launch.
DASP License: Requires about 6 months due to the broader business scope and stricter compliance obligations. It’s more complex but also offers greater flexibility and utility.

Whether you opt for a BSP or DASP license, El Salvador welcomes you with open arms. This land of volcanoes and Bitcoin brims with untapped potential, waiting to be discovered!

Securing the right license is the critical first step toward success. From deciding between BSP or DASP licenses, accurately calculating application costs and timelines, assembling a compliant team, and registering an SRL company, to drafting and revising applications, submitting documents, and preparing for interviews—navigating these interconnected steps can be daunting. That’s where a professional compliance team becomes indispensable.

Cryptolicence is your most trusted partner! We offer complete end-to-end support, from project management to help you plan out a clear application roadmap, to thorough document preparation ensuring seamless compliance. We also provide concise coaching so you can approach the approval process with confidence, plus customized add-on services to meet your unique needs. Let us take the hassle out of every step!

Get in touch with Cryptolicence now to bid farewell to complicated procedures, easily secure your license, and leverage El Salvador’s licensing advantages to carve out a share of the burgeoning crypto market!

One License, Dual Use—Save Millions: Can Canada’s MSB and Switzerland’s SRO Launch Both Fiat and Crypto Services Simultaneously?

Table of Contents

The Dual-Licensing Burden: Slow, Complex, and Expensive

1. Long Approval Timelinests

2. Complex Compliance Requirements

3. High Costs

A New Path to Efficient Compliance: Exploring the 'One License, Dual Use' Model

Key Advantages

1. Rapid Market Entry

2. Unified Compliance Framework

3. Significant Cost Savings

Who Should Choose “One License, Dual Use”?

CryptoLicence: Your Smart Compliance Partner

Argentina VASP Overview

Table of Contents

1. Current Status

2. Licensing Requirements (Post-May 2025)

3. Legal Advisors Engaged

Unveiling the 5 Key Advantages of the Canada MSB License: The Top Compliance Choice for Startups

Table of Contents

Cost Advantage of the Canada MSB License

1. Lower Application and Operational Costs

2. Favourable Tax Policiesdocumentation

Speed Advantage of the Canada MSB License

Compliance Advantage of the Canada MSB License

Credibility Advantage of the Canada MSB License

Business Advantage of the Canada MSB License

CryptoLicence Helps You Obtain a Canada MSB License

Poland MiCA Update

Table of Contents

Phased Transitional Period: Who Benefits and How

Legal Provision: Article 163 (1) Explained

Projected Timeline for CASP Licensing in Poland

Grounds for Removal from the VASP Register During the Transition

Client Terms & Conditions: New Obligations for CASPs

Client Financial Declarations: Ambiguities and Implementation

Other Key Changes in the Draft

1. Reintroduction of Crypto Lending

2. Standards for Providing Crypto Advice

Conclusion

Hong Kong MSO Licence Approvals Plummet—How Can You Clear the Higher Compliance Bar?

Table of Contents

The Value of a Hong Kong MSO Licence

Who Needs an MSO Licence?

Key Application Requirements

Rising Application Difficulty

The Optimal Path to an MSO Licence

Pain Points in the Crypto Market: How to Overcome Bank-Account Bottlenecks and Card-Issuance Hurdles?

Table of Contents

Seven Key Steps from Compliance to Live Operations

1. Apply for a crypto-asset licence

2. Prepare compliance documentation

3. Open bank accounts

4. Set up payment channels

5. Issue crypto cards

6. Test and optimise systems

7. Go live

Why Is Opening a Bank Account So Hard?

1. Banks’ Cautious Stance toward Crypto

2. High Compliance Barriers

3. Restrictions on Multi-Currency Accounts

Card-Issuance Challenges: Balancing Risk, Compliance, and Marketing

1. Risk Assessment by Card-Issuing Networks

2. Technical & Compliance Requirements

3. Marketing Execution for Crypto Cards

CryptoLicence—Your Gateway Partner to the Crypto Economy

Ready-Made Crypto Licenses: Save Time and Fast-Track Your Compliance and Market Expansion!

Table of Contents

Why Choose a Ready-Made License?

1. Save Time and Effort — Instant Market Entry

2. Worry-Free Compliance — Risk Mitigation

3. Transparent Costs — Controlled Budget

Who Should Consider a Ready-Made License?

Where to Purchase Ready-Made Licenses?

Why Is Switzerland the Industry’s Top Choice? 3 Key Advantages That Attract Crypto Players

Table of Contents

Advantage 1: Strict Regulation Builds Credibility

Advantage 2: Escape MiCA Burdens, Start with Lower Costs

Advantage 3: Flexible SRO Membership Accelerates Market Entry

A Clear Guide to Onshore vs Offshore Licenses – Which One Is the “Ace Card” for Your Crypto Business?