Any person who is dealing with securities for another person in any manner must be required to be licensed. These persons can include brokers and dealers under US laws. Any issuer of a token or a coin that may be considered as security or other intermediaries dealing with similar products may be required to be registered as a Broker-Dealer in the US.
The process of registration as a Broker-Dealer is strictly regulated by the Financial Industry Regulatory Authority (FINRA) and the US SEC. There are several procedural compliances which need to be in place along with compliance with specific standards. Empire Global through its team of experts will assist you with the entire process through:
- Guidance on registration as a broker-dealer
- Providing information about alternatives and exemptions
- Preparation of documents and plans for registration as a Broker-Dealer
- Assistance with setting up the business structure for operation
- Communication with Banks
- Registration in the states and US territories.
If operations are not scheduled to be conducted in the US, there are other jurisdictions where a license for dealing in securities including Security Tokens may be applied for. Popular jurisdictions include the Cayman Islands and Vanuatu.
Vanuatu offers an opportunity to obtain a Principal’s License or a Representative’s License under the Financial Dealers Licensing Act (Vanuatu). This license enables the holder to deal with Securities which may also include a Security Token due to its very wide definition. A Vanuatu License is issued by the Vanuatu Financial Services Commission and Empire Global can assist you with the licensing process upon completion of which you will be eligible to deal in Securities. The entire process can be completed in around 3-4 months on the availability of the requisite documents and the qualifying funds for obtaining a license. Please get in touch with Empire Global to understand the licensing process in detail.
The Cayman Islands also provides the opportunity to obtain a Securities Investment Business License under the Securities Investment Business Law for dealing in Securities. The Licenses are issued by the Cayman Islands Monetary Authority which is the regulator for regulating securities trade in the Cayman Islands. The definition of securities under the Securities Investment Business Law is also very wide and may cover the Security Tokens. Empire Global can assist you with the process of applying and obtaining a Securities Investment Business License which may allow you to issue Security Tokens and conduct other businesses linked with Security Tokens.