Specialized Legal Consultation for Securing Offshore Crypto License

The decision to go offshore has several underlying consequences for your crypto company. Before choosing an offshore jurisdiction instead of a more classical one, it is crucial to get a clear understanding of what it implies. An offshore crypto license is not comparable in every aspect with a VASP license in traditional jurisdictions. There are specific differences to be aware of before structuring the legal side of your crypto project in an offshore crypto country. Offshore jurisdictions may offer different levels of regulatory oversight compared to traditional jurisdictions, making it essential for crypto businesses to implement robust compliance procedures. These procedures should be regularly updated and reviewed to ensure ongoing adherence to AML, KYC, and other legal requirements throughout both the licensing and operational phases.

Offshore crypto licenses advantages

When joining the cryptocurrency industry or reinforcing your presence, it is only natural to seek the most advantageous and optimal setup for your crypto venture.

The offshore crypto licenses’ advantages are significant, and the crypto industry continues to trust the offshore zone to provide relevant regulations, while the USA or the EU (with MiCA) are rolling out stricter regulations.

• Tax benefits, with low or zero corporate income and capital gains tax;
• Facilitate better relationships with banks and financial institutions, easing up the opening of a corporate bank account;
• Data privacy is typically enhanced in offshore jurisdictions, providing better data protection for the company and its clients. It also helps to protect assets from liability;
• Legally operate worldwide with international clients, run an international cryptocurrency business at the crossroads of financial transactions;
• Simpler legal framework, in comparison to the stricter regulations of major economies.

Comparison of popular offshore crypto licenses

Comparison of popular offshore crypto licenses

The crypto sector is by definition directed toward the global market. But a cryptocurrency exchange business may wonder what the most optimal choice among all the offshore limited liability company that permits to obtain a crypto license. Below is a table based on our experience working with cryptocurrency businesses in various offshore jurisdictions.

Corrected Summary Table: Offshore Crypto Licenses

Offshore crypto licenses can generally be categorized into special licenses, which are issued in jurisdictions with clear, dedicated cryptocurrency regulations (such as the British Virgin Islands, Dubai VARA, Seychelles, Cayman Islands, and now Saint Vincent and the Grenadines), and general registrations, which exist in jurisdictions where cryptocurrencies are treated under broader commercial laws without a specific crypto-license framework (currently primarily Costa Rica and Panama).

It is important to note that the “general” category is shrinking. For instance, Saint Vincent and the Grenadines recently transitioned to a fully regulated model with the enforcement of the Virtual Asset Business Act in 2025, requiring a specific license and supervision.

We encourage you to contact our team for a refined, personalised assessment of your project to navigate these shifting categories.

Costs and Fees of an Offshore Cryptocurrency License

Lower costs and fees remain a major attraction for the offshore crypto market, though this varies significantly by jurisdiction.

• Reduced Startup Costs: In “general” jurisdictions like Costa Rica or Panama, reduced startup costs allow for an easier entry into business, as requirements for share capital and physical presence are minimal. However, in regulated offshore centres like Dubai (VARA) or the Seychelles, overheads are higher due to mandatory requirements for physical offices, resident staff, and minimum share capital (e.g., starting from ~27,000 USD in Dubai);
• Scalability of Fees: Unlike onshore jurisdictions that may tax global profits heavily, most offshore jurisdictions charge licensing fees. Crucially, these fees do sometimes scale. For example, in the Cayman Islands, annual renewal fees can range from 5,000 KYD to 100,000 KYD, depending on the revenue generated and the type of service provided. In Dubai, supervision fees also vary based on the specific activity tier.

Typical Process for an Offshore VASP License

With the assistance of a legal partner such as LegalBison, the process timeline varies drastically depending on the chosen jurisdiction’s regulatory depth.

• Fast-Track: For jurisdictions like Costa Rica or Panama, the process can be as fast as 1 to 6 weeks.
• Regulated Track: For fully licensed jurisdictions like the British Virgin Islands, Labuan, or Dubai, the process typically takes 4 to 12 months due to rigorous regulatory reviews.

Standard Steps Include:

1. Preparation of required documents (Passport copies, proof of address, CVs).
2. Company Incorporation (Often an IBC or LLC).
3. Drafting of Detailed Policies: Mandatory AML/KYC policies, risk management frameworks, and cybersecurity protocols.
4. Personnel Appointments: Appointment of a Compliance Officer and/or Money Laundering Reporting Officer (MLRO), often required to be a local resident in jurisdictions like Seychelles or Dubai.
5. Application Submission: Payment of government fees and submission to the regulatory authority (e.g., BVI FSC, Dubai VARA).

Compliance Note: Most regulated offshore jurisdictions (including BVI, Cayman, Seychelles, and Mauritius) now require annual audits and the maintenance of financial statements. While lighter than some onshore regimes, these obligations are strictly enforced to maintain the validity of the license.

Crypto and blockchain offshore – licensing, registration and regulation

Crypto and blockchain offshore – licensing, registration and regulation

Offshore crypto licenses can generally be categorized into special licenses, which are issued in jurisdictions with clear, dedicated cryptocurrency regulations (such as the British Virgin Islands, Dubai VARA, Seychelles, Cayman Islands, and now Saint Vincent and the Grenadines), and general registrations, which exist in jurisdictions where cryptocurrencies are treated under broader commercial laws without a specific crypto-license framework (currently primarily Costa Rica and Panama).

It is important to note that the “general” category is shrinking. For instance, Saint Vincent and the Grenadines recently transitioned to a fully regulated model with the enforcement of the Virtual Asset Business Act in 2025, requiring a specific license and supervision.

We encourage you to contact our team for a refined, personalised assessment of your project to navigate these shifting categories.

Which crypto offshore license to choose for my company?

As for any financial service, many offshore jurisdictions are developing regulations that are clear and simple, in order to attract entrepreneurs. This is why the licenses provided there are often simpler to get than in North America, the European Union, or Asia.

There are different types of crypto activities, and licensing may differ: crypto broker license, crypto wallet license, crypto custody license, etc. The regulatory requirements may vary accordingly. A broker license facilitates buy and sell orders for clients in the cryptocurrency trading process. In some jurisdictions, specific licensing or registration is also required for payment services, in addition to other crypto-related activities, depending on local regulations.

A fantastic example is the “virtual asset services provider” license in the Cayman Islands. Interested in the many possibilities offered by the blockchain, the Cayman Islands has taken a regulatory stance that encourages innovative and ambitious projects, while providing them with a standardised and worldwide-recognised compliance rulebook.

Any kind of crypto business is possible in the Cayman Islands: blockchain trust, DAO, DeFi protocols, peer-to-peer crypto exchange, DApps, NFTs, etc. There are solid alternatives to the Cayman Islands: the BVI VASP permit, the SVG crypto license, and more. Depending on your business model, our experts will advise you on the best suitable offshore country to start up your crypto company.

Such a license would allow companies engaged in digital assets businesses to provide custody services, token issuance (with the required documentation by local laws), exchange operations and various crypto services.

However, experience shows that the best and cheapest offshore option for virtual asset service providers is often the Costa Rica crypto registration. While not a formal license issued by a financial regulator, this framework has everything one would expect to find: low price, fast set-up, no taxes on foreign income, and a business-friendly environment. No wonder why it is a favourite of LegalBison’s numerous clients, especially in the spheres of crypto gaming (along with a gaming license) and DeFi.

When considering an offshore crypto license, it is crucial to select a suitable jurisdiction to ensure legal compliance, benefit from favourable regulations, and support the long-term success of your business.

Managing an offshore company from anywhere in the world

One of the advantages of registering a crypto business offshore is that you don’t always need to reside in the place of establishment, though requirements are tightening.

Jurisdictions differ on “Substance”:

• High Substance: Seychelles and Dubai (VARA) now require a physical office and resident staff (such as a local director or compliance officer) to ensure legitimacy.
• Medium/Low Substance: The British Virgin Islands (BVI) require a physical address but no local director. Saint Vincent and the Grenadines (SVG) requires a local Principal Representative, but no physical office.
• Low Substance: Costa Rica and Panama generally allow operations without a local director or physical office, requiring only a legal address.

The process of registering a crypto company offshore is simple. Once you have been duly advised on your choice of jurisdiction, you only need to provide a set of documents, and LegalBison will take care of your company formation. If the authorities require, or if you want to gain trust among your clients, a complete set of AML-KYC documents and procedures will be delivered for you to easily implement them into your business model. Obtaining an offshore license increases the trust and credibility of a business in the eyes of clients and investors.

This way, you are making sure that neither your company nor your clients will be at risk of wrongdoing.