A Crypto License in the Comoros Islands

A client of ours wanted to obtain a crypto license to trade in cryptocurrencies in Eastern Europe and Asia. We helped him find such a license, which was cost-effective, and allowed him to establish himself as a cryptocurrency creator and international trader. Read on to see how we did it.

Story

This client realized that crypto operations were softly regulated in much of Eastern Europe and Asia and often no license was required if all one wanted to do was to exchange crypto for crypto. However, the client wanted to be able to exchange crypto for fiat currencies. Additionally, he had an ambitious plan to start emitting his own cryptocurrency. He had learnt that having a license is mandatory if you wanted to emit your own cryptocurrency so he contacted us.

The client had done some research before he contacted us, but he had been unable to find a suitable jurisdiction to apply for a crypto license. In some jurisdictions such as Japan or Singapore, for example, the license fee was quite substantial. In some other jurisdictions such as the USA or the UK, the application process was rather complicated and the requirements were too stringent. In still other jurisdictions, the license acquisition time frame was unsatisfactory.

We had several suggestions, and after comparing different options by various parameters, the client decided that he wanted to apply for a crypto license in the Comoros Islands.

Solution

Acquiring a crypto license in Comoros is advantageous for a number of reasons. The regulations are not too strict. For example, the local authorities have no blacklist of those who can or cannot apply for crypto licenses in the country, except the basic list of UN sanctioned countries. The list of required application documents is also very short. Our client had to submit only his passport, proof of address, a bank statement, and a resume. At the same time, the administration of Comoros wants to be compliant with the international AML and CFT regulations and the local legislation requires that all companies providing financial services carry out due diligence checks. Unlike other jurisdictions, however, Comoros allows outsourcing of AML tasks. 

Another attractive feature of Comoros is that the license fee is quite affordable. At that time, in fact, it was the lowest price in the market. A crypto license can be acquired fast, in this case, the license acquisition process took only 3 weeks. We had to establish an IBC in Comoros to be able to apply for a crypto license but that was straightforward. 

The IBC applying for a license should have a minimum capital of EUR 250,000. This capital requirement can be satisfied with a financial guarantee. Financial guarantees can be funds in your personal bank account or funds in the accounts of companies under your control. You can also use crypto assets for this amount as financial guarantees.

Another requirement that one had to meet to qualify for a crypto license in the Comoros Islands was opening a corporate bank account and we assisted the client with this task too.

Result

We gave that client of ours all the instruments that he needed to cooperate with wholesale liquidity providers. Now he is trading in cryptocurrencies with other crypto enthusiasts in Eastern Europe, Asia, and other parts of the world.