Offshore Tactics For FinTech Companies
30 November 2020
30 November 2020
Fintech is changing the traditional way of banking and financial services. The offshore space has flexible corporate structures, simple taxation, appropriate regulation, robust infrastructure, and sophisticated legal systems which are extremely important for a successful development structure of fintech businesses.
To start a payment processor, you probably need to partner with a corresponding bank, which is not easy to get. Many fintech companies are doing offshore business and blockchain for which several countries offer special banking licenses. It will help your company to partner with an established processing company to gain the experience that you need to build your reputation.
Obtaining money transmitter licenses can be a hard task. But not all fintech businesses need a money transmitter license. Only if you are someone who needs to touch money as part of the business model it is necessary that you have a money transmitter license. To get a money transmitter license, you can partner up with another company, have your own license or have an agreement where exemption is provided.
Initial coin offering is a way to raise funds for companies by creating a new coin, app, or service. Interested investors can buy the offerings and receive new cryptocurrency tokens. More people are leaning towards it because it looks like an easy way to raise a large amount of money. Companies need to make sure that the types of the offering are perfect and the token has to make sense to the company and be appealing to the investors.
Offshore banking is legal and can bring many benefits if it is done correctly. Dominica, Cayman, and Lithuania are some of the best jurisdictions where you can get a license for a startup offshore bank.