DISCLAIMER: The term "cryptolicense" in this text refers to a license to conduct virtual asset business (VAB license). The use of the term "cryptolicense" is intended solely to simplify the perception of the text by customers and visitors to the website.
In May 2022 the Virtual Assets Business Act (VABA) was passed in Saint Vincent and the Grenadines (SVG) that seeks to provide for the registration and supervision of virtual asset business in / from SVG and with persons in SVG and for related matters. But the VABA has not yet been proclaimed by the Governor General, so it is not yet in force, but it is possible it will come into force during 2024.
The Financial Services Authority (FSA) will be the competent authority tasked with regulating and supervising Virtual Asset Service Providers (VASPs) in SVG.
The VABA has not yet been proclaimed by the Governor General, so it is not yet in force, but it is possible it will come into force during 2024
Key Numbers about Cryptolicense in SVG
4 monthsaverage term of obtaining a cryptolicense |
0%corporate income tax (CIT) rate for foreign-sourced income |
$100,000statutory deposit |
$4,000application fee |
$12,000annual registration fee |
0%value added tax (VAT) rate to a SVG offshore company |
Legal Opinion about Cryptolicense in SVG
Ganna Voievodina
Manimama
|
CEO
“SVG is a jurisdiction with a progressive regulatory framework that provides clarity and flexibility for cryptocurrency companies. With our experience and guidance, we will guide you through the entire regulatory process, allowing you to obtain a cryptolicense quickly and easily.”
Types of Activities with a License in SVG
Exchange between a virtual asset and fiat currency
cryptolicensees offer conversion between virtual assets and fiat currencies, giving customers the ability to transact in multiple currencies.
Exchange between one or more forms of virtual assets
holders of cryptolicense can process the conversion or exchange of one type of virtual asset for another.
Transfer of a virtual asset whether or not for value
holders of cryptolicense can provide the conducting a transaction on behalf of another person that moves a virtual asset from one virtual asset address or account to another.
Safekeeping or administration of a virtual asset or instruments enabling control over a virtual asset
cryptolicensees can securely store and manage virtual assets on behalf of individuals or entities, or provide services that enable persons to maintain control over their virtual asset.
Participating in and provision of financial services related to an issue or sale of a virtual asset
cryptolicensees may engage in activities related to the provision of financial services in connection with the issuance or sale of virtual assets by the issuer.
Benefits of Obtaining a Cryptolicense in SVG
Favorable tax environment:
- There are no specific taxes on cryptocurrencies in SVG.
- SVG is a member of many Double Taxation Agreements.
Favorable geographical location:
- SVG is located in the Caribbean, which provides a favorable environment for cryptocurrency activities.
- Opportunity to create favorable partnerships with investors and partners from different countries in the region.
Regulatory flexibility:
- The regulator quickly adapts to changes in the cryptocurrency sector, ensuring compliance with modern standards.
- Flexible regulation allows for easy adoption of new technologies and business models.
Well-established financial infrastructure:
- Comfortable execution of transactions in fiat funds and cryptocurrencies.
- Ability to work with different types of assets, facilitating diversity of financial transactions.
Active financial sector development:
- The SVG government develops and implements modern laws to facilitate the development of the cryptocurrency business.
- Regulatory authorities ensure transparency and safety of doing business in the cryptosphere.
Clean international reputation:
- The SVG government implements international standards and best practices in financial services to minimize risks.
- Safe and sound investor protection practices contribute to the jurisdiction's credibility.
Our Services
Popular package
Premium
Full list of necessary services to set up of the VASP with connection to KYC providers, C2B account for crypto activities
- Company formation in SVG
- Legal registered office and registered agent
- Apostilled corporate documents
- Individual AML/KYC policies
- Business and customer service plan
- International multi-currency crypto-friendly bank account
- Application for a cryptolicense
- Full communication with FSA
- Annual Beneficial Ownership and Economic Substance filings
Advanced
Set up of company ready to start cryptocurrency operational activity
- Company formation in SVG
- Legal registered office and registered agent
- Individual AML/KYC policies
- Business and customer service plan
- Application for a cryptolicense
- Full communication with FSA
- Annual Beneficial Ownership and Economic Substance filings
Basic
Creating the company and obtaining a cryptolicense
- Company formation in SVG
- Legal registered office and registered agent
- Application for a cryptolicense
- Standard AML policies
Our Experts in this Area
Step by Step Description
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Step 1. Initial setup
We need such preliminary documents and information from the client for a company incorporation:
- Preferred company name
- Preferred legal form (Business Company is one of most popular offshore forms)
- Notarized copy of passport, drivers licence or national ID from all beneficial owners, directors and shareholders
- Notarized copy of a utility bill or similar document, not more than 3 months old as proof of residential address (example water, electricity bills) for all beneficial owners, directors and shareholders
- Bank or specialist certificate for all beneficial owners, directors, and shareholders
- Information about the activities of the company
- Information about the source of funds
- A Power of Attorney (in case of a remote company registration)
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Step 2. Company registration
- Selecting a SVG licensed Registered Agent
- Preparation of corporate documents
- A SVG licensed Registered Agent must file an application and documents to the Registrar of Companies for the incorporation
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Step 3. Preliminary work prior to applying for a cryptolicense
- Preparation of an AML/KYC policies
- Open an account - a person shall not be registered under VABA unless that person makes to the FSA a statutory deposit of $100,000 (~ €92,000) or an amount equal to 25% of the financial obligations to clients of the registrant, whichever is greater, in cash, government securities or in any other form
- A registrant with a registered office outside of SVG shall appoint and have at all times in place, a person who is ordinarily resident in SVG to be its principal representative
- Preparation of all necessary documents and application
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Step 4. Obtaining a cryptolicense
- Submission of the application to the FSA
- Payment of the application fee - $ 4,000
- Application review by the FSA
- Where the FSA approves an application the applicant shall pay the registration fee - $ 12,000
- Listing the registrant on the FSA register and issuing a Certificate of Registration
Understanding the Requirements of SVG
To provide or carry out cryptocurrency activities, you must apply for registration with the FSA
A person must apply to the FSA for registration in writing and provide the following:
- The name and address of the registered office of the person
- The address of the place of business of the person in SVG
- A statement setting out the nature and scope of the VAB including but not limited to the date operations commenced, name of application and website address where the person conducts VAB from or intends to conduct VAB from and the name of any other country where the person offers or intends to offer VAB
- The name and address of any person who holds a management position or is authorized to represent the applicant
- The name and address of any affiliated company within and outside of SVG
- The names and address of directors, beneficial owners and significant shareholders
- The name and address of any principal representative or proposed principal representative required by section 10
- Written policies, rules and procedures for AML and CFT measures, data management and protection, security access control and cyber security safeguards
- A copy of a risk assessment of the products and services to be provided
- Any other information the FSA may reasonably require for the purpose of determining the application and whether a person is fit and proper
Requirements for Obtaining a Cryptolicense in SVG
The mandatory requirements are to make a $100,000 security deposit with the FSA, appoint a principal representative who is resident in SVG if the registrant has a registered office outside SVG, and submit annual audited financial statements to the FSA
Requirements for a registrant:
- A registrant must have at least 1 director and 1 shareholder in the company (there are no restrictions on the residency or nationality of the directors and shareholders)
- A registrant with a registered office outside of SVG shall appoint and have at all times in place, a person who is ordinarily resident in SVG to be its principal representative
- A registrant shall implement and maintain policies for the VAB to comply with any data protection legislation
- A registrant shall comply with the requirements of AML/ CFT legislation, and institute procedures to ensure that accounting records and business operations comply with AML/CFT legislation
- A person shall not be registered under the VABA unless that person makes, to the FSA, a statutory deposit of $100,000 (~ €92,000) or an amount equal to 25% of the financial obligations to clients of the registrant, whichever is greater, in cash, government securities or in any other form approved by the Minister
- A registrant shall appoint annually an auditor to perform an audit
- A registrant shall within 3 months of the end of the financial year submit the audited financial statements to the FSA
Fees:
- Application fee is $4,000 (~ €3,700)
- Registration fee is $12,000 (~ €11,000) - if the FSA approves an application
- For each year a registrant continues to offer or operate VAB, the registrant shall renew the registration by paying the registration fee on or before January 31 of each year
Taxes in SVG
Cryptocurrency-related activities are not taxable
There are no special taxes on virtual assets in SVG.
In 2018, there were significant changes in taxation legislation. Following enactment of International Business Companies (Amendment) Act 2018, an International Business Company has been replaced by Business Company and the tax exemption regime has been removed. Companies incorporated in 2019 and thereafter are under the territorial tax regime where only foreign-sourced income is exempt from local income tax while Business Companies are subject to corporate tax on income earned within the island (if any; it is 30%).
No VAT is applicable to a SVG offshore company.
There is no currency exchange control in SVG.
SVG is a member of the Double Taxation Agreement with Antigua, Belize, Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis, Saint Lucia,Trinidad and Tobago.
Frequently Asked Questions
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What are the advantages of obtaining a cryptolicense in SVG?Advantages include favorable tax policy, developed financial infrastructure, easy registration and support from the government.
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What are the basic requirements for companies wishing to obtain a cryptolicense?Companies must meet the following requirements: there must be at least 1 director and 1 shareholder (no restrictions on residency or citizenship; compliance with AML/CFT legislation; making a $100,000 deposit with the FSA; appointing an auditor to conduct an audit annually; and submitting audited financial statements to the FSA.
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What types of activities are allowed under a cryptolicense?A cryptolicense allows you to engage in the exchange, transfer of cryptocurrencies, participate in and provide financial services related to the offering or sale of cryptocurrency by an issuer, store or manage cryptocurrencies or instruments that allow you to control them.
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What tax policies apply to cryptocurrency companies?SVGs offer favorable tax treatment as they do not have specific taxes on cryptocurrencies.
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Which regulator is responsible for the cryptolicensing process?The main regulator is the Financial Services Authority (FSA).
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What are the capital requirements?A person cannot be registered under VABA unless that person makes a statutory deposit with the FSA of $100,000 or an amount equal to 25% of the financial obligations to the registrant's customers, whichever is greater, in the form of cash, government securities or any other form approved by the Minister.
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What are the fees for applying for a cryptolicense?To start with, you need to pay an application fee of $4,000. If the FSA approves it, then you need to pay an application fee of $12,000. For each year that the registrant continues to provide cryptolicense services, they must renew their registration by paying the registration fee on or before January 31st of each year.
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What security measures must be followed?Companies must ensure the security of customer data and comply with anti-money laundering procedures.
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What are the features of the SVG jurisdiction?The jurisdiction offers a favorable business environment, low taxes, and developed financial infrastructure.
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What opportunities does a cryptolicense open for business?A cryptolicense opens access to international markets, attracts investments, provides legal protection and increases customer confidence.
Semen Kaploushenko
"I had an excellent experience working with Manimama OU in creating the SVG company. Currently we are in process of the VASP license application and I am sure they will do that".
Vadym Hrusha
"Manimama OU exceeded my expectations with their exceptional legal services. I appreciated their strategic approach to handling my legal matters".
Yuriy Soshenko
"I'm extremely satisfied with the services provided by Manimama OU. The team offered valuable insights throughout the process. I'm grateful for their support in achieving a favorable outcome. Highly recommended".
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