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SVG is tightening the screws. More solutions from the UTIP
The jurisdiction of St. Vincent and the Grenadines (SVG) has been attractive to owners of high-risk projects over the years as it offered the most reasonable price-performance ratio and the lowest level of bureaucracy and paperwork. But the latest news raised concerns about regulatory changes in the Forex industry.
At the beginning of 2023, the FCA required Forex companies to provide certified copies of the licenses issued by the countries of their operation. Moreover, the deadline for granting licenses turned out to be tight, with only 2 months after the requirement was published.
This shift has seriously worried the market and sparked heated debates on how to respond to the regulator’s claims.
UTIP Technologies experts have already dealt with similar issues, so there are certain options for resolving difficulties in favor of our clients. Let’s take a closer look.
The first option is to comply with the regulator’s requirements and provide copies of the license or legal opinion. A legal opinion is a document issued by a law firm stating that a company does not require a license to conduct certain activities in the specified jurisdiction. It is accompanied by references to national legislation and market regulators’ acts, along with legal counsel’s comments. Please, contact UTIP Technologies Ltd’s Partnership Department to get more information and obtain a legal opinion.
The second option is to relocate the OTC business to a jurisdiction with more lenient requirements. Our clients often choose the Marshall Islands, located in the Pacific Ocean.
The jurisdiction of the Marshall Islands has several advantages over one of St.Vincent and the Grenadines. Registering a company in the Marshall Islands is much faster, as it requires fewer documents from the owner. Moreover, the jurisdiction’s regulator, GLOFSA, does not require licensing of Forex companies, and it doesn’t perform audits of their activities. There are also some conventional benefits of unregulated jurisdictions, including zero taxation and privacy.
It costs 20-25% more to register a company in the Marshall Islands than in St. Vincent and the Grenadines. However, the speed of filing and the lack of licensing requirements are quite enough to cover the costs.
UTIP provides support in registering a company under unregulated jurisdiction
Based on our interaction with existing and potential clients, the option with an offshore jurisdiction seems to be the most preferable and desirable in terms of price-to-time ratio. That’s why it is recommended for trading operations. In this regard, if it is important for you to register under unregulated jurisdiction, UTIP Technologies experts are ready to provide assistance, as well as to offer a wide range of other services.
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