"Well into 2025, FinTech founders face not just a problem of making a market-fitting product, but also a whole minefield of regulations. With the rapid regulatory shifts and the overall development of frameworks worldwide, setting up a company for FinTech operations has become harder than ever before. Many still disregard this step, even though it creates the foundation for the success of any business. In fact, how meticulously you form and structure your company, from jurisdiction to licensing pathway, directly"
"Different jurisdictions, onshore and offshore, define FinTech activities differently. Take MiCA in the EU as a prominent example: among other things, it has established a sharp distinction between asset-referenced tokens (ARTs) and e-money tokens (EMTs). While bringing clarity, this split also caused new licensing nuances for token issuers registered in the Member States. Offshore hubs have their own frameworks and processes."
Well into 2025, rapid regulatory shifts and evolving frameworks have made setting up FinTech companies significantly more complex. Company formation choices—from jurisdiction selection to licensing pathways—determine the ability to meet compliance obligations and avoid fines, delays, and reputational damage. Different jurisdictions define FinTech activities differently; for example, MiCA separates asset-referenced tokens and e-money tokens, creating new licensing nuances. Offshore hubs offer faster incorporation, tax advantages, reduced reporting, and shareholder privacy, attracting entrepreneurs. Diverse activities such as banking, investment, insurance, Forex, and online gambling fall under separate regulatory umbrellas, requiring tailored authorization strategies and expert guidance for compliant market entry.
Read at Business Matters
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