Step 11: Select Applicable License
Optional
It is essential to specify the type of license an issuer holds if applicable. This ensures regulatory compliance, defines the scope of permissible activities, and streamlines the due diligence process. Licensing demonstrates that the issuer meets the necessary legal and operational requirements, providing assurance to investors, partners, and regulators. The selected license type also determines the regulatory obligations, reporting standards, and operational limitations applicable to the issuer.
Importantly, it's vital to evaluate the applicability of licensing requirements to the issuer's business model and token type. Failure to properly register is a heavy criminal offense, so this assessment should be undertaken diligently.
Select the applicable license(s) from the list below.
Available Licenses and Their Importance
Full Banking License. Grants authorization to provide a full range of banking services, including deposits, loans, and payments.
Restricted Banking License. Allows limited banking services, often under specific conditions or for a niche market.
Investment Advisor License (EU MiFID II / US SEC Registration). Authorizes the issuer to provide investment advisory services in compliance with EU or US regulations.
Broker-Dealer License. Permits the issuer to act as a broker or dealer for securities transactions.
Portfolio Management License. Authorizes the issuer to manage investment portfolios for clients.
Asset Management Company License. Permits the issuer to manage pooled investment funds, such as mutual funds or hedge funds.
Alternative Investment Fund Manager (AIFM) License. Authorizes the management of alternative investment funds under EU regulations.
UCITS License (Undertakings for Collective Investment in Transferable Securities). Authorizes the issuer to manage investment funds that comply with EU UCITS regulations.
Private Fund License. Authorizes the management of private investment funds, typically targeting high-net-worth individuals or institutions.
Mutual Fund License. Permits the management of mutual funds for diversified investment portfolios.
Family Office License. Allows the issuer to manage assets exclusively for a family or small group of families.
Electronic Money Institution (EMI) License. Authorizes the issuance of electronic money and payment services.
Payment Institution License. Permits the issuer to provide payment services, such as transfers and remittances.
Money Transmitter License. Authorizes money transmission services in compliance with local and international regulations.
Virtual Asset Service Provider (VASP) License. Authorizes the issuer to provide services related to virtual assets, such as exchanges or custody.
Crypto-Asset Service Provider (CASP) License. Authorizes the issuer to provide services related to crypto-assets, such as exchanges, custody, and other regulated activities. This license ensures compliance with regulatory frameworks like MiCA, AML (Anti-Money Laundering), and CTF (Counter-Terrorism Financing). It is required for businesses offering crypto-related financial services, including trading, custody solutions, issuance, and advisory services.
Crypto Custodian License. Authorizes the secure storage of digital assets for clients.
Crypto Exchange License. Permits the operation of a cryptocurrency exchange.
Crypto Payment Processor License. Authorizes the issuer to process crypto payments.
Other Licenses. Any licenses not explicitly mentioned above should be listed under this category. This includes jurisdiction-specific fintech, securities, or blockchain-related licenses that enable asset tokenization, financial operations, or blockchain-based services.
Last updated
Was this helpful?