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Chinese Crypto Licensing - Vanuatu
About Vanuatu
Vanuatu supports the development of offshore banks that provide a variety of banking services to non-residents. Vanuatu offshore banking has drawn people and corporations seeking tax advantages, confidentiality, and asset protection.
Vanuatu has expressed interest in digital assets including cryptocurrency. The Vanuatu Financial Services Commission implemented the “Virtual Asset Service Provider Act” (VASP Act) in 2018, which provided criteria for the registration and regulation of virtual asset service providers. The goal of this framework was to improve consumer protection and reduce the dangers associated with digital assets and cryptocurrencies.
Vanuatu is an island country located in the South Pacific Ocean. The archipelago is located around 1,750 kilometres east of Australia, 500 kilometres north of New Caledonia, west of Fiji, and south of the Solomon Islands. Vanuatu is about 2.5 hours by plane north of Brisbane and 3.5 hours by plane from Sydney, Australia.
According to Worldometer’s elaboration of the most recent United Nations data, the current population of Vanuatu is 327,684 as of Monday, May 15, 2023.
Bislama is the primary language spoken by the majority of Vanuatuans. In Vanuatu, nearly a hundred different languages from the Oceanic subgroup of the wider Austronesian family are spoken, although almost everyone also speaks Bislama as a second language.
The Vanuatu Parliament is the major legislative body today, however pre-independence French and British statutes, English common law principles, and indigenous custom all have some constitutional and judicial status.
1. Regulatory Framework
The VASP Act establishes a regulatory framework for virtual asset service providers, offering clarity and legal stability to enterprises in the crypto industry. This framework aids in the establishment of regulations and standards for cryptocurrency-related activity in Vanuatu.
2. Legitimacy and Trust
Obtaining a crypto licence in Vanuatu can help your crypto-related firm gain legitimacy and trust. It communicates to prospective clients and investors that you operate in a regulated environment and are committed to compliance and consumer protection measures.
3. Compliance Standards
By acquiring a crypto licence in Vanuatu, you demonstrate your readiness to follow regulatory standards and industry best practises. This can assist build confidence with customers and counterparties since they can be certain that your activities are transparent and compliant.
4. Banking Services Availability
Having a crypto licence in Vanuatu may give you better access to banking services. Some financial institutions may be more likely to form ties with licenced cryptocurrency businesses, allowing for simpler transactional operations, such as fiat money conversions.
5. Investor Satisfaction
A Vanuatu crypto licence may assist attract potential investors who value regulatory monitoring and compliance. A licence can reassure investors that your operations satisfy specific requirements and that their investments are, to some extent, safeguarded.
6. Opportunities for International Business
Vanuatu is well-known for its welcoming business environment and worldwide financial services sector. Having a crypto licence in Vanuatu may allow you to extend your crypto-related firm abroad, especially given Vanuatu’s offshore company formation and banking services.
General
| License: | Financial Dealers License |
|---|---|
| Timeframe for Approval: | 3 months |
| Regulator: | Vanuatu Financial Services Commission |
Company Structure
| Local Director: | At least one director |
|---|---|
| Local Shareholder: | At least one shareholder |
| Local Registered Office: | Required |
| Local Staff: | Required |
| Compliance Officer: | Required |
| AML/KYC: | Required |
| Audit: | Required |
| Economic Substance: | Required |
| Corporate Tax Rate: | 0% |
| Currency: | Vanuatu Vatu (VUV) |
| Tax Structure: | 0% Tax on Offshore Profits |
| Min. Paid-up Capital: | None |
| Capital Requirement: | Approx. $40,000 |
| Gov. App Fee: | USD2,000 |
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- Recognise the Regulatory Requirements
- Incorporation of a Company
- Prepare Application Materials 3.1 A business plan that describes the nature and extent of your crypto-related activity.
- Apply to the Vanuatu Financial Services Commission.
- Process of Review and Approval
- Compliance Evaluation and On-Site Inspection
- Issuance of Licences
3.2 Documents related to company establishment, such as the certificate of incorporation and memorandum of association.
3.3 Organisational structure, outlining the company’s ownership and management.
3.4 Compliance rules and processes, including as anti-money laundering (AML) and know your customer (KYC) controls.
3.5 Financial statements demonstrating the company’s financial soundness and resources.
3.6 Background and qualifications of key employees participating in the firm.
- Crypto Exchange Services
- Crypto Wallet Services
- Crypto Payment Services
- Crypto Brokerage Services
- Initial Coin Offering (ICO) Services
- Crypto Advisory Services
- Crypto Custody Services
- Crypto Remittance Services
Documents required by all involved individuals
(including but not limited to directors, shareholders and beneficial owners)
- Passport copy (Notarised)
- Utility Bill issued within the last 3 months (Notarised)
- CV or Resume for each involved individual
- Two professional reference letters
- Qualifications (Notarised)
For Corporate Shareholders
- Articles of Association in English
- Registered office address documents (Notarised)
- Company Register of director/s
- Company Register of UBOs (shareholder register, or incumbency certificate, or share certificates)
- Establish Vanuatu offshore entity.
- Preparation and drafting of shareholder and officer agreements.
- Preparation and drafting of narrative business plan.
- Preparation and drafting of current financial statements.
- Preparation and drafting of 3 years financial projections.
- Preparation and drafting of personal financial statements for owners.
- Preparation and submission of application with Vanuatu Financial Services Commission.
- Preparation and drafting of responses to Vanuatu Financial Services Commission.
- Identification and engagement of auditor and local representative.
- Facilitate opening of bank accounts and trading accounts.
- Preparation and drafting of AML/KYC policies and procedures.
- Preparation and drafting of client agreements and disclosures.