With the EU’s Markets in Crypto-Assets (MiCA) regulation setting a new benchmark for digital asset oversight, crypto businesses are navigating an increasingly complex compliance landscape. While MiCA offers long-term clarity and a unified approach, its stringent requirements — including capital thresholds, full AML compliance, and local presence — are driving some firms to explore alternative jurisdictions that prioritize flexibility and speed. Similarly, in Canada, new requirements now mandate that Money Services Businesses (MSBs) register not only with FINTRAC but also with the Bank of Canada, further increasing regulatory complexity in traditionally crypto-friendly regions.

Offshore regions like Panama and Saint Vincent and the Grenadines (SVG) are emerging as practical choices for crypto companies aiming to launch quickly and maintain global reach without the regulatory overhead common in the EU and Canada.

А crypto-friendly environment in Panama

Panama has quickly gained traction as a preferred base for crypto companies, thanks to its simple incorporation rules and absence of taxation on foreign-sourced income. Unlike EU jurisdictions that require detailed AML compliance and physical presence, Panama allows remote setup with no mandatory local director or office requirements.

“Panama’s territorial tax system and fast company formation make it an ideal launchpad for crypto startups,” says Mark Mengel, senior sales manager at AdamSmith Law. “Licensing can be completed within weeks, not months.”

Costs are also comparatively low, and the country maintains a reputation for stable corporate governance, even while offering minimal regulatory friction for digital asset firms.

SVG: speed, simplicity, and zero tax

Saint Vincent and the Grenadines offers one of the most straightforward paths for companies offering crypto-related services. With no corporate income tax and fast-track company formation, SVG has become a go-to for firms seeking agility. The Financial Services Authority (FSA) provides clear guidance, and regulatory hurdles are minimal.

As noted by AdamSmith Law, crypto licensing in SVG typically involves a simple registration process. This jurisdiction is particularly attractive for global projects looking to minimize bureaucracy while staying within a recognized legal framework.
"SVG offers flexibility that is difficult to find elsewhere, especially for DeFi projects and global service platforms,” notes the office.

Offshore vs Regulation

MiCA promises harmonized regulation and a single market for crypto across the EU — but with that comes increased costs, staffing obligations, and regulatory oversight. The similar situation could be seen in Canada and other strict regulated countries.
For companies unwilling or unprepared to meet these demands, offshore jurisdictions like Panama and SVG provide a compelling alternative. They allow businesses to operate globally, access banking services, and build investor trust without the extended lead times and high capital requirements associated with EU registration.

The Role of AdamSmith Law

AdamSmith Law has become a trusted partner for crypto firms evaluating offshore and onshore jurisdictions alike. The firm assists with entity formation, license applications, legal opinions, and ongoing compliance — helping clients navigate both strict regulated and offshore frameworks depending on their operational goals.
As regulatory pressure mounts in Europe and Canada, the shift toward flexible jurisdictions like Panama and SVG highlights the growing demand for legal clarity without bureaucratic overload. And with firms like AdamSmith Law leading the way, crypto businesses are better equipped than ever to make smart, jurisdictional decisions that align with their long-term strategy.

Introduction

The United Kingdom is increasingly positioning itself as a transparent and business-friendly jurisdiction for crypto ventures. The government supports innovation and growth in the sector, aiming to establish the country as a global crypto hub. For crypto entrepreneurs and investors, this translates into clear rules, comprehensible regulations, and high levels of trust from partners and clients. However, launching a crypto company in the UK requires compliance with specific regulations and registration with the Financial Conduct Authority (FCA). This practical guide offers a step-by-step explanation of how to open a crypto company in the UK, obtain the necessary license, understand the timelines and costs, anticipate potential challenges, and how our expert team (including an in-country legal advisor) can help ensure a successful outcome.

Why the UK?


The UK is one of the leading countries supporting digital innovation and the growing cryptocurrency market. Cryptoassets such as Bitcoin and Ethereum are legal to own and use in the UK, although they are not recognized as legal tender. A strong fintech ecosystem thrives here, particularly in London, where investors, talent, and major crypto exchanges like Binance and Coinbase have originated. The UK authorities are implementing regulations to ensure transparency and user protection while maintaining the sector's appeal. In February 2023, the Treasury released a consultation on future cryptoasset regulation aiming to establish a comprehensive framework in collaboration with industry players. This proactive regulatory approach favors clear rules over prohibitions. Being licensed in the UK grants legal status to your crypto business, enhances its reputation, and facilitates access to banking and other services restricted to regulated entities.

Being registered with the FCA signals that your company complies with the UK's strict AML/CTF (Anti-Money Laundering/Counter-Terrorist Financing) requirements, boosting trust among clients and investors. As of early 2025, only 51 companies were registered with the FCA out of 368 applications, including major firms like Coinbase, Fidelity, Gemini, and Kraken. A license places your business in an elite circle of regulator-approved entities, reinforcing its credibility.

Crypto Regulation in the UK: What You Need to Know


Crypto companies must register with the FCA if they provide cryptoasset services in the UK. Since January 2020, all exchanges, custodians, and other virtual asset service providers are required to register under the Money Laundering Regulations (MLRs). Currently, UK crypto regulation focuses solely on AML/CTF compliance. Other regulatory areas (e.g., investor protection, capital requirements) are still being developed, with comprehensive rules expected by 2026. Early adopters who build strong compliance now will be better positioned for expanded authorizations in the future.
In the UK, crypto firms are "registered" rather than "licensed" by the FCA. This registration confirms that the company meets AML standards. Even if your activities don’t fall under financial services (e.g., e-money issuance or investment services), FCA registration is mandatory for legal crypto operations. The FCA is known for its rigorous approach: only about 14% of applications have been approved. Many were rejected or withdrawn due to lack of preparation, emphasizing the need for a serious approach. We outline the proper path below.

Step-by-Step Guide: Launching a Crypto Company and Getting Licensed in the UK

• Register a UK Company: Incorporate a Limited (Ltd) company via Companies House. This typically takes 1–2 days online, with a fee of around £12. Foreigners can register remotely. You’ll need a unique company name and a UK address. At least one director and one shareholder are required (they can be the same person). Plan ownership and governance structure early, as FCA will later require full disclosure.
• Prepare Internal Documentation and Compliance Policies: This is the most demanding stage. You must compile a package proving your business is secure and compliant, including:
  
  • Business plan (model, target markets, financial forecasts)
  • AML/CTF policies
  • Risk management systems
  • KYC/client identification procedures
  • Cybersecurity measures
  • Officer profiles and references
  • Appointment of a qualified MLRO (Money Laundering Reporting Officer)
  These documents must reflect real operational readiness, not just formalities. Our team supports this by providing templates, adapting them to your needs, and leveraging our experience with successful FCA applications.
  
• Submit the FCA Application: File through the FCA Connect portal, upload all documents, and pay the fee: £2,000 for businesses with annual crypto income under £250k, £10,000 for larger firms. The fee is non-refundable. You must declare your understanding of regulatory guides and submit complete, accurate data. An FCA case officer will be assigned.
• FCA Review Process: The FCA examines your application thoroughly. They may request clarifications or additional documents (e.g., proof of capital, tech specs, policies). Timely and thorough responses are crucial. Processing takes 3 to 6 months on average, depending on FCA workload and business complexity. Delays are common for incomplete applications. The FCA may suggest withdrawal to avoid formal refusal if issues arise. Avoiding rejection is vital, as refusals are made public. Our goal is to deliver a high-quality application that clears scrutiny.
• License Issuance and Ongoing Obligations: If the FCA is satisfied, you’ll be added to the official crypto register and can legally operate in the UK. You’ll also receive ongoing obligations such as:
  
  • Annual reporting
  • Periodic fees (starting at ~£1000/year)
  • Notification of significant changes (directors, address, etc.)
  • Compliance audits
  Compliance must be maintained. Our team continues supporting clients post-approval, advising on new requirements, reporting, and regulatory communications.
  

Timelines and Expectations


Realistic planning is key. Summary:

• Company registration: 1 week or less
• Document preparation: 4–8 weeks
• FCA review: 3–6 months

Total: approximately 6–9 months (can be up to 12 months for complex cases). Bank account opening can take 1–2 weeks and should be factored in. You cannot serve UK residents before FCA approval. Use this time to refine your product and build partnerships. With good preparation, a 6-month timeline is achievable.

UK Licensing Costs


Estimated budget:

• Government Fees: £2,000/£10,000 registration fee + £100).
• Consulting and Documentation Services: Costs depend on scope. Our full-service package includes policy drafting, business planning, application submission, and FCA communications. Pricing is transparent and agreed upfront. A basic package includes company setup, AML policies, and application submission. Additional services (e.g., hiring MLRO, choosing AML software) are quoted separately. Expect to budget tens of thousands of pounds, in line with other financial licenses. These investments pay off with access to a major financial market.
• Internal Costs: Building a basic compliance infrastructure may require hiring an MLRO or external consultant, improving cybersecurity, and training staff. We guide where investment is necessary.

Challenges and Solutions


Common hurdles and our solutions:

• Strict Requirements: UK standards are high. We demystify regulations and prepare you for FCA dialogue.
• Documentation Volume: We provide FCA-accepted templates adapted to your model. Our London-based lawyer handles local formalities.
• FCA Communication Delays: We manage all communications and prepare draft responses. Local presence ensures efficiency.
• Technical AML Implementation: We recommend tech providers for KYC and transaction monitoring. External APIs can fulfill key roles without a large team.
• Regulatory Changes: Crypto laws evolve rapidly. We monitor updates and help you stay compliant. For example, we prepared clients for the 2023 crypto advertising rules.

With the right guidance, every challenge is manageable. Our mission is to make licensing smooth and let you focus on growing your business.

Our Expertise and Value


Why clients trust us:

• Proven Track Record: Years of success in fintech licensing across the UK and EU. We know what FCA expects and tailor our approach.
• In-Country Legal Expert: Our UK-licensed lawyer is based in London and ensures fast, effective regulator interaction.
• End-to-End Support: From consultation to application and beyond, our integrated team handles legal, compliance, risk, and more. We also assist with bank accounts, local directors, and office setup.
• Transparency and Partnership: Clear contracts, upfront pricing, regular updates. We value long-term trust and continued client relationships.
• Tailored Approach: We adapt to your stage and needs—whether you're starting from scratch or need specific support.

Conclusion


Licensing crypto activities in the UK is a rigorous but rewarding process. The country offers transparency, prestige, and access to a top-tier market. In return, you must meet high standards. This guide has outlined the key steps. With our experience and hands-on support, you can turn regulatory compliance into a competitive edge. Let us handle the complexities while you focus on innovation and growth. If you're ready to start or have questions, our team is here to help. Good luck conquering the UK crypto market!

At Adam Smith Corporate Law, we have successfully secured over 1,000 cryptocurrency licenses across the EU and beyond, demonstrating our deep expertise and trusted track record in the field.

WWW: adamsmith.lt

Telegram: @AdamSmithLT

New Opportunity: MSB and FMSB Licenses in Canada

We now also assist in obtaining MSB and FMSB licenses in Canada – an excellent solution for crypto projects looking to operate in a reliable and regulated jurisdiction.

Advantages of Licensing in Canada:

✔️ Flexible capital and compliance requirements.
✔️ Ability to work with cryptocurrencies and fiat payments.
✔️ Access to banking and financial services.
✔️ Simple registration and fast license approval.

Новая возможность: MSB и FMSB лицензии в Канаде
Теперь мы также помогаем получить MSB и FMSB лицензии в Канаде – отличное решение для криптопроектов, которые хотят работать в надежной и регулируемой юрисдикции.

Преимущества лицензирования в Канаде:
✔️ Гибкие требования к капиталу и соответствию.
✔️ Возможность работать с криптовалютами и фиатными платежами.
✔️ Доступ к банковским и финансовым услугам.
✔️ Простая регистрация и быстрое получение лицензии.

Hello everyone! 👋

If you’re launching a crypto project and unsure how to obtain a license or prepare your business for the new European regulations (MiCA), we’ve got you covered! We are the team at AdamSmith.lt, experts in crypto licensing and compliance.

How we can assist you:

Obtaining a Cryptocurrency License:

• We help you choose the jurisdiction that best suits your project.
• We assist in obtaining licenses in Lithuania, Estonia, Saint Vincent and the Grenadines, and other jurisdictions.
• Full support throughout the process: from company registration to securing all necessary documents.

MiCA Compliance Preparation:

• Guidance on the new European Union requirements.
• Documentation preparation to comply with MiCA, including AML/KYC policies, privacy policies, and more.
• Audit of your current processes with actionable recommendations for compliance.

Comprehensive Crypto Project Support:

• Company registration in the required jurisdiction.
• Assistance with opening bank accounts and integrating payment systems.
• Development of tailored technical solutions for your business needs.

Why choose us?

We have extensive experience working with crypto projects of all sizes and complexities.
Fast and transparent service – no hidden costs.
Full-cycle support so you can focus on growing your business.

Want to learn more? Leave a comment or visit our website at AdamSmith.lt. We’ll help you build a legal and successful crypto business! 🚀

Привет всем! 👋

Если вы запускаете криптопроект и не знаете, как получить лицензию или подготовить свой бизнес к новым европейским требованиям (MiCA), мы здесь, чтобы вам помочь! Мы – команда AdamSmith.lt, эксперты в области лицензирования криптопроектов.

Чем мы можем помочь:

Получение криптовалютной лицензии:

• Помогаем выбрать страну, которая подходит именно вашему проекту.
• Оформляем лицензии в Литве, Эстонии, Сент-Винсенте и Гренадинах и других юрисдикциях.
• Полностью сопровождаем процесс: от регистрации компании до получения всех документов.

Адаптация под MiCA:

• Консультации по новым требованиям Европейского Союза.
• Подготовка вашей документации для соответствия MiCA: AML/KYC, политика конфиденциальности и прочее.
• Аудит текущих процессов и рекомендация изменений.

Полное сопровождение криптопроекта:

• Регистрация компаний в нужной юрисдикции.
• Открытие банковских счетов и интеграция платежных систем.
• Разработка технических решений для вашего бизнеса.

Почему мы?

• У нас есть опыт работы с криптопроектами разного уровня сложности.
• Мы работаем быстро и прозрачно – никаких скрытых расходов.
• Обеспечиваем полный цикл услуг, чтобы вы могли сосредоточиться на развитии своего бизнеса.

Если вы хотите узнать больше, пишите в комментариях или заходите на наш сайт AdamSmith.lt. Мы поможем вам построить легальный и успешный криптобизнес! 🚀

As a rule, KYC (Know Your Customer) is a mandatory requirement for working with cryptocurrency, and the need for this procedure depends on the legislation of a specific country. For example, in Lithuania, which is considered one of the most crypto-friendly jurisdictions, KYC requirements are strictly regulated. Companies seeking a crypto license must comply with all AML (Anti-Money Laundering) and KYC standards to ensure transparency and security in financial transactions.

We obtained our crypto license through https://adamsmith.lt/en/crypto-license/lithuania/, and they provided a lot of useful information about how KYC works in different countries. If you're interested in this topic, I highly recommend reaching out to them—they are well-versed in cryptocurrency market regulations.

In the event that it is still relevant, it can be considered as an alternative to obtaining a crypto license in Lithuania (https://adamsmith.lt/en/finance-and-blockchain/cryptocurrency-license-in-lithuania/) or Estonia https://adamsmith.lt/en/finance-and-blockchain/cryptocurrency-license-in-estonia/

(I think) You can write a request for staff members on the webpage https://adamsmith.lt/en/finance-and-blockchain/cryptocurrency-license-in-lithuania/#modal or you can also send an email to - info@adamsmith.lt and they will thoroughly reply about all differences between Estonian and Lithuanian crypto licences.

In the event that it is still relevant, it can be considered as an alternative to obtaining a crypto license in Lithuania

In the EU it is necessary to obtain special licenses to conduct crypto-currency activities. For example, about the requirements for obtaining a license in Lithuania, licenses in Estonia.

If you, as an physical person, exchange cryptocurrency for your personal purposes, then no permissions or licenses are required. The only requirement is to pay taxes on the income received.

For physical persons, cryptocurrency cannot be banned. And for a crypto business, it will always be possible to find a jurisdiction loyal, for example Estonia