Known for its flexible online gambling license, Anjouan provides an equally beneficial solution for crypto startup and established company owners. While the license might not be as popular as its other offshore counterparts, it is definitely worth some attention. After all, who would refuse a fast, pocket-friendly, and hassle-free entry to the global cryptocurrency market?
Where exactly is Anjouan located and what is its relevance to crypto licensing?
Located off the eastern coast of Africa, Anjouan is part of the Union of the Comoros. Recently, the island has gained attention for its offshore financial services, including the issuance of licenses for cryptocurrency-related activities. The Anjouan Offshore Finance Authority oversees these licensing activities, providing a regulatory framework for obtaining the Anjouan crypto license. There is no exact date of the establishment of Anjouanโs crypto licensing framework, but since a crypto banking license was issued on August 18, 2018, to Crypto Group Bank Ltd, we can assume that this authorisation already existed by that date.
What defines an “Anjouan crypto license”? Is it a specific legal framework?
A crypto license in Anjouan is a specific legal permit issued to blockchain-related businesses by the Anjouan Offshore Finance Authority, which authorises entities to engage in a variety of crypto-related services. This license allows companies to operate a wide range of crypto business structures, including crypto exchanges and wallets. Some of the specific regulations that are behind this license are Government Notices No. 004 and No. 005 of 2005.
What types of cryptocurrency-related activities can be covered under an Anjouan license?
According to the official website of the Anjouan Offshore Finance Authority, the crypto license issued in the Autonomous Island of Anjouan allows licensees to carry out all or any of the following crypto-related activities:
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Cryptocurrency trading;
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Operation of a Cryptocurrency Exchange (utility and security tokens);
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Cryptocurrency liquidity provision;
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Cryptocurrency storage;
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Acceptance of cash deposits of any type;
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Provision of loans and borrowing of funds;
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Conduct of currency exchange transactions;
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Issuance of securities and credit card processing;
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Securities safekeeping, management, and execution of securities purchases and sales;
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Acting as an intermediary in securities trading;
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Provision of guarantees;
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Facilitation of payments, including opening accounts for legal entities and individuals;
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Holding assets, capital, precious metals, bonds, shares, or other financial instruments for third parties;
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Engagement in electronic commerce;
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Provision of other financial services.
These activities may be carried out either individually or conjunctively within one business structure.
What are the key benefits or advantages of obtaining a crypto license in Anjouan?
Obtaining a crypto license in Anjouan offers a number of undeniable advantages. Primarily, cost-effectiveness, since the licensing and operational costs are substantially lower compared to other jurisdictions. The licensing process is also sped up, and most permits are issued within 1-2 business weeks, provided that all the documentation was prepared properly and submitted on time. Besides, the licensing process in Anjouan is devoid of bureaucratic complexity, which guarantees faster market entry. Anjouan is also a very tax-efficient jurisdiction, with no tax imposed on Gross Gaming Revenue (GGR).
Are there specific requirements or criteria that applicants for an Anjouan crypto license must meet?
Indeed, there are a number of necessary requirements that must be met before an applicant is granted crypto authorisation in Anjouan. However, this list is relatively short and simplified. In order to obtain an Anjouan crypto license, one must establish a company with a local address in Anjouan, raise an initial share capital, go through the due diligence process for all beneficiary owners and directors, and implement Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. These are the standard compliance requirements imposed by almost every licensing jurisdiction in the world.
For what kinds of crypto projects (e.g., exchanges, wallets, ICOs) is the Anjouan license most appropriate?
The Anjouan crypto framework is known for its flexibility, allowing for an impressive range of crypto activities. This being said, we would recommend registering in Anjouan to startups looking for a cost-effective licensing solution with a minimal waiting time. The jurisdiction would be suitable for crypto exchanges seeking to operate with a global clientele, crypto wallet providers, and entities planning to launch token offerings (ICOs).
Are there any restrictions or limitations associated with an Anjouan crypto license in terms of global operations?
In general, Anjouan is one of the most allowing offshore jurisdictions when it comes to international operations. Nevertheless, there are some basic restrictions that every licensee must abide by:
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Avoid Domestic Activities. Refrain from conducting business within Anjouan and offering crypto services to local residents.
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Comply with Target Jurisdictions. Ensure adherence to the laws and regulations of countries where services are offered.
Adhering to these rules will ensure the absence of compliance gaps and safeguard your business from possible fines or even license revocation.
How does the cost of an Anjouan crypto license compare to licenses from other jurisdictions?
Anjouan is known for having one of the lowest crypto licensing fees compared to other offshore countries. The cost of registration usually includes everything from initial company formation to compliance services and annual maintenance fees. We recommend securing a partnership with a legal advisor that can assist your company with licensing in Anjouan while being transparent about the expenses associated with this process.
What is the regulatory environment for cryptocurrency in Anjouan beyond just licensing?
Beyond the licensing procedure, Anjouan maintains a regulatory framework that emphasises compliance with international standards, mainly for its AML and KYC requirements. The expectations for licensees are basic but needed to ensure their transparency and adherence to the global best practices. In this regard, Anjouan balances lenient regulatory oversight with operational flexibility, making it attractive for crypto businesses worldwide.
How can a crypto business apply for and obtain an Anjouan license?
In order to secure a crypto authorisation in Anjouan, every applicant must go through the following steps:
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Register a business entity in Anjouan.
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Gather necessary documents, including business plans and compliance policies.
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Apply through the Anjouan Offshore Finance Authority or authorised agents.
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Wait for the due diligence and approval processes.
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Upon approval, receive the license and commence your operations.
The whole process takes around 1-2 business weeks on average, depending on the completeness of your application and the workload of the regulator. We highly advise having a legal agent assist you along the way, as an experienced consultant can undertake the process on your behalf and rid you of the administrative hurdles.
