
The more the fintech industry develops, the more regulation is required. Unifin has a boutique approach and therefore focuses on consulting on the following licenses:
Crowdfunding
Startups and small to medium-sized businesses that are looking to raise funds can use crowdfunding as an investment method. Crowdfunding is an exchange in which the supplier of crowdfunding services operates as a digital platform accessible to the public, without taking any risk, to connect potential investors and lenders with businesses requiring cash.
Crowdfunding typically has three sorts of participants:
1)the project owner, who proposes the proposal for funding;
2)investors who back the project;
3)an intermediate organization that connects project owners and investors via an online platform as the crowdfunding service provider.
Loan-based crowdfunding services propose and evaluate crowdfunding offers for clients or analyse the credit risks of crowdfunded projects and project owners.
An investment-based crowdfunding service receives and distributes client projects seeking crowdfunding in one location and offers freely transferable securities or approved instruments on a public platform without fixed obligations, giving investors unfettered access.
MSB
To start a fintech project and offer payment services, permission is required. The Canadian Money Services Business (MSB) license is one way to quickly register your payment business and get it up and running.
In any EU country or the UK, getting an EMI license is time consuming and expensive. It can take more than a year and a half from the start to the actual launch. At least 3–4 months will be needed to prepare the paperwork, 9–15 months to get approval from the regulator, and 3–4 months to launch the basic payment infrastructure.
So, most new companies that want to start a fintech business have to look for other ways to do it faster than getting an approved PI or EMI license. One option is to work as an agent for a licensed BaaS provider. The other option is to register as a small payment institution. One of our recommended methods is obtaining a Canadian Money Services Business (MSB) license. You can get the Canadian MSB license instead of becoming an agent of a BaaS-provider, getting a small PI/EMI license, or becoming a fully authorized PI/EMI institution.
What exactly does a MSB license in Canada presume?
Its an entry in a special list of businesses that offer payment services. This list is kept by FINTRAC, a Canadian government agency (Financial Transactions and Reports Analysis Centre of Canada). Money Services Businesses (MSBs) are required by Canada's Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and related regulations to prevent money laundering and funding of terrorist activities.
Money Services Businesses (MSB) and Foreign Money Services Businesses (FMSB) are the two types of businesses in Canada are bound by the PCMLTFA (FMSB).
Small Alternative Investment Fund
A Small Alternative Investment Fund (AIF) registered in the EU is able to manage up to 500 million EUR in capital, and draw deposits from both professional and ordinary investors. AIF can take care of a portfolio of investments that includes virtual currency, real estate, bonds, stocks, derivatives, and other types of investments. Depending on the country, it takes about two to three months on average to set up the whole infrastructure (the management company, an alternative fund, and an operating license) at a low cost. One more benefit is that fund investors' information is kept private (list of investors is not public and stored within the fund manager).
The commercial activities of AIFs are subject to relevant requirements and transitional provisions. These depend on a number of factors, such as how each EEA state markets and/or manages AIFs.
Even though local laws are based on the EU Directive, which itself is generally accepted, each European state has its own rules and benefits. For AIF founders to choose the right jurisdiction, they need to do a preliminary analysis or get a full legal opinion that takes into account all of the factors. Because of this, we only focus on a small number of jurisdictions in the Baltics .
Digital assets
The European Crypto License allows business to operate lawfully, makes crypto-enterprise visible, and boosts the confidence of clients, partners, and state authorities. Entrepreneurs in cryptocurrencies appreciate the possibilities of this trend.
Assessing your project and services before picking the right jurisdiction is crucial and this is where Unifin comes in. In the majority of instances, a Bitcoin Exchange License is required.
European regulatory regulations have a single EU-compliant scenario. Yet, crypto-asset business models may differ dramatically.
VASP exchange and custody licenses often enable the following:
- Virtual value exchange
- Online management
- Virtual-fiat exchange
- Virtual value custody
- Virtual value transfer
We assist clients in the licensing process in the EU in Estonia,Lithuania and Czech Republic.