EMI formation or purchase

[lacomaco]

One of my business partner has applied for an EMI licence in Cyprus, but the country has not issued a new EMI licence this year at all it seems. They are considering an alternate jurisdiction or the possibility of buying an EMI with a brand new licence or an existing one. Any experts to recommend? I would not waste your time if they would not be serious. Thanks!

 

[Sols]

There have been some changes in key positions within the Central Bank of Cyprus this year which have caused delays in the application review processes. I wouldn't worry too much about it. I'm already seeing improvements and things look promising going into 2021.

Buying a license has no advantage in terms of timing, since the regulator will review the new shareholders as an entirely new application. At most you save a couple of weeks of the review process, if the products and services remain the same. Generally speaking, it's only worth buying an EMI if you also need to buy the platform, product, and/or customers.

With Brexit, several jurisdictions like Ireland and Luxembourg are being overwhelmed with new applicants. Unless your client has strong connections to another EU member state, Cyprus is probably still the best option.

 

[lacomaco]

There have been some changes in key positions within the Central Bank of Cyprus this year which have caused delays in the application review processes. I wouldn't worry too much about it. I'm already seeing improvements and things look promising going into 2021.

Buying a license has no advantage in terms of timing, since the regulator will review the new shareholders as an entirely new application. At most you save a couple of weeks of the review process, if the products and services remain the same. Generally speaking, it's only worth buying an EMI if you also need to buy the platform, product, and/or customers.

With Brexit, several jurisdictions like Ireland and Luxembourg are being overwhelmed with new applicants. Unless your client has strong connections to another EU member state, Cyprus is probably still the best option.

Hi Sols, thanks for the information. The Al Jazeera video probably does not help to get a much better and well-organized approval system in Cyprus...