STO license in Vanuatu

STO represent a significant milestone in the technological advancement of blockchain. Various jurisdictions worldwide have different regulatory approaches to STOs. Vanuatu has established clear legislation governing security token offerings. The Vanuatu STO license is issued according to financial legislation provisions upon submission of an application to the VFSC. Vanuatu is regarded as one of the preferred countries for obtaining an STO license, offering favorable conditions for blockchain industry startups.

What is an STO?

STO is the process of offering a cryptocurrency that qualifies as a security for sale. A security token can represent various securities, such as shares, debentures, or bonds, or exhibit characteristics similar to securities. It is crucial to recognize that securities transactions are regulated in Vanuatu, and offering security tokens necessitates consultation with experts who can provide detailed guidance on obtaining a Vanuatu STO license.

Regulations

The regulatory requirements for an STO vary depending on the type of asset backing the token. Companies must adhere to various obligations, restrictions, legal agreements, disclosure and reporting, and KYC/AML regulations. Securities laws and regulations must be considered not only when registering a company in Vanuatu but also in the investors' countries of residence.

How to obtain an STO license in Vanuatu

Launching an STO project in Vanuatu involves obtaining a category D license, which covers activities related to digital assets using blockchain technology. This license requires prior acquisition of licenses for categories A, B, and C.

The general process for obtaining an STO license is as follows:

1. Registering the company in Vanuatu.
2. Appointing a CEO, CFO, CTO, MLRO, and Alternative MLRO.
3. Preparing the necessary documentation.
4. Submitting the STO license application to the VFSC.
5. Upon pre-approval, opening a bank account and signing a lease agreement.

Applicants must demonstrate compliance with capital requirements, specifically a deposit of USD 50K and an authorized capital of USD 500K in a local bank account. It is also important to consider Vanuatu's AML and KYC requirements, ensuring that investment funds do not originate from illegal sources. The KYC process is crucial for compliance with securities laws and determining investor accreditation.

Our team offers comprehensive support for STO projects, including consulting on regulatory compliance, creating a robust project structure, and conducting legal audits. Our specialists are ready to assist in all aspects of achieving a successful STO.