FAQ — Crypto & Fintech Licensing
Why is the owner selling a seemingly successful or clean company? What’s the catch?
There are various legitimate reasons for selling a licensed entity. These often include a strategic pivot to a new business model, the founders exiting after a successful setup phase, or a need to liquidate assets for other ventures. Our role during the initial due diligence is to verify that the reason for the sale is not related to hidden operational, regulatory, or legal problems. We ensure you have full transparency into the company’s history and the seller’s motivations.
How can I be sure the company has no hidden debts, lawsuits, or liabilities?
We address this risk in two stages. First, we conduct our own preliminary due diligence before listing any company to screen for obvious red flags. Second, and more importantly, we facilitate a comprehensive, independent third-party due diligence process for you, the buyer. You will have access to a full data room, and the final report will give you a complete picture of the company’s financial and legal standing. Our process is built on a “no secrets” policy.
What does “clean, never operated” actually mean?
This term signifies that the company was established solely for the purpose of obtaining the license and has not engaged in any commercial activities. It has no client history, no revenue, and no operational legacy. This is often preferred by buyers who want a completely blank slate to build their own operations without inheriting any past risks. We verify this status through corporate records and financial statements.
Is the regulator’s approval of me as the new owner guaranteed?
While no third party can “guarantee” a sovereign regulator’s decision, managing this approval process is a core part of our service and expertise. We conduct a thorough “fit and proper” assessment of you as a potential buyer before the transaction proceeds. By preparing and submitting a flawless application package on your behalf, we dramatically increase the probability of a smooth and successful approval from the regulator.
What’s the difference between an EMI and a PI license?
An EMI (Electronic Money Institution) license allows companies to issue and manage e-money, offer payment services, and hold client funds. A PI (Payment Institution) license permits payment services only, without e-money issuance or long-term fund storage. EMI licenses provide broader financial functionality.
Is Canada’s MSB license sufficient for operating a crypto exchange?
Yes. Canada’s MSB (Money Services Business) license, regulated by FINTRAC, is mandatory for operating a crypto exchange. It covers crypto trading, foreign exchange, money transmission, and digital payments. However, it does not permit dealing in securities or derivatives.
How long does the ownership transfer process actually take?
The timeline depends on the jurisdiction and the specific regulator’s processing speed. However, our streamlined project management significantly accelerates the process. A typical transfer, from signing the Share Purchase Agreement (SPA) to receiving final regulatory approval, can range from a few weeks to 3-4 months. We provide a detailed, realistic timeline for your specific case from the outset.
What additional costs should I expect on top of the listed price?
Our philosophy is “No Hidden Costs.” The listed price for a company is for the asset itself. Our all-inclusive service fee for managing the entire transaction is quoted separately and transparently. This fee covers our project management, legal coordination, and preparation of the regulatory submission. Any mandatory third-party costs, such as regulator’s application fees or notary services, are clearly itemized for you upfront. The price you see is the price you pay.
Do you guarantee that my license application will be successful? What happens if it’s rejected?
No reputable firm can guarantee the decision of a sovereign regulatory body. However, our guarantee is one of quality and diligence. We ensure that your application package will be prepared to the highest professional standard, meeting all formal requirements and best practices to maximize the probability of a successful outcome.
What additional costs should I expect on top of the listed price?
Our philosophy is “No Hidden Costs.” The listed price for a company is for the asset itself. Our all-inclusive service fee for managing the entire transaction is quoted separately and transparently. This fee covers our project management, legal coordination, and preparation of the regulatory submission. Any mandatory third-party costs, such as regulator’s application fees or notary services, are clearly itemized for you upfront. The price you see is the price you pay.
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