Coredo

When it comes to vetting crypto projects, the statistics are sobering: according to Chainalysis, in 2024 more than $1.7 billion was lost by investors due to unscrupulous or technically vulnerable blockchain startups. Even more telling: about 70% of cryptocurrency listing applications on major exchanges are rejected precisely because of errors or inconsistencies discovered during the Due Diligence stage. Why do so many promising projects fail the review despite innovative ideas and strong teams?

In reality, a comprehensive review of blockchain projects is not just a formality but a strategic tool for protecting investments and increasing the chances of a successful listing. Due diligence for crypto projects allows you to identify legal, financial, and technical risks, assess the transparency of tokenomics, verify the legality of operations, and ensure compliance with international standards. For teams, it is an opportunity to demonstrate business maturity; for investors, to reduce the likelihood of losing funds; and for exchanges, to ensure the security of the ecosystem.

At COREDO we encounter cases every day where properly conducted due diligence becomes the decisive factor for a project’s entry into the global market. I invite you to read the article to the end: here you will find practical recommendations, strategic ideas, and checklists that will help you pass due diligence for a crypto project as effectively as possible – from preparing documents to assessing risks and interacting with exchanges.

Main stages of cryptocurrency project due diligence

The main stages and process of checking cryptocurrency projects (due diligence) imply a phased and systematic assessment of all key aspects of a project to reduce risks and enable informed decisions. From the outset it is important to clearly define the objectives of the review and prepare for each subsequent stage in order to identify weaknesses of the cryptocurrency project and assess its real potential.

Setting objectives and preparing for due diligence

Due diligence for crypto projects begins with a clear formulation of goals: determine legal compliance, assess financial stability, identify technical risks and prepare the project for listing or an investment round. In practice COREDO has shown that setting KPIs and a timeline for the review significantly speeds up the process and makes it transparent for all parties.

The terms of reference should include a list of aspects for analysis: corporate structure, tokenomics, smart contracts, sources of financing, KYC/AML mechanisms. It is important to select a team of experts with experience in international jurisdictions: as implemented by COREDO when working with projects for the EU, Singapore, Dubai and the United Kingdom.

Gathering and organizing documents

An effective comprehensive review of blockchain projects is impossible without proper organization of an electronic data room. The solution developed by COREDO allows documents to be structured by category: charter, corporate agreements, licenses, whitepaper, roadmap, financial reporting, smart contract audit reports.

Key documents for due diligence of a crypto project:

• Charter, corporate agreements, ownership structure
• Financial statements, bank statements, project budget
• Whitepaper, technical documentation, description of tokenomics and vesting mechanisms
• Licenses for cryptocurrency operations, confirmation of AML/KYC compliance
• Roadmap, reports on MVP implementation, test protocols

Legal audit of a crypto project

Important aspects of legal review:

• Analysis of the legal structure of the crypto issuer and ownership structure
• Review of corporate agreements, shareholder agreements, presence of offshore elements
• Assessment of the token’s status: whether it is classified as a security according to the Howey Test, MiCA, SEC or FCA
• Sanctions screening of crypto projects through international databases, analysis of political connections and reputation
• Checking KYC/AML procedures for token sale participants: compliance with FATF, EU, MAS (Singapore) and other standards

The solution developed by COREDO integrates automated tools for verification against government registries, which minimizes the human factor and speeds up the audit.

Financial review and risk assessment

A financial review of a blockchain startup includes analysis of inflows and outflows, assessment of the fair price of the token, scenario modeling and identification of critical risks. COREDO’s experience confirms that scenario analysis of crypto projects enables investors to make decisions based on objective data rather than just marketing forecasts.

Key steps of financial due diligence:

• Analysis of financial flows: sources of revenue, expenses, budget structure
• Assessment of financial stability: adequacy of reserves, balance sheet transparency, absence of hidden liabilities
• Scenario modeling: calculation of worst-case and best-case scenarios, risk matrix
• Verification of funding sources: legality, transparency, absence of sanctions restrictions
• Preparation of a risk report and strategies for their mitigation (insurance, reserving, diversification)

At COREDO we use international standards of financial audit, which allows adapting the review to the requirements of the EU, Singapore, Dubai and other jurisdictions.

Technical audit and smart contract review

Technical due diligence includes:

• Smart contract audit: security review, vulnerability testing, execution logic analysis
• Validation of the MVP and the working protocol: confirmation of the presence of a working product, not just a concept
• Technical integration of cryptocurrencies on exchanges: compliance with API standards, configuration of trading pairs, ensuring compatibility
• Assessment of the blockchain solution architecture: scalability, fault tolerance, compliance with security standards (ISO, OWASP)

The COREDO team uses independent technical auditors and automated tools for testing smart contracts, which allows identifying risks at an early stage and correcting the project’s architecture before market launch.

How to pass due diligence for a cryptocurrency listing

Preparing for listing: requirements and documents

Main requirements:

• Whitepaper with a detailed description of the technology, tokenomics, team, and roadmap
• Documents confirming legal compliance: charter, licenses, corporate agreements
• Information about the team: biographies, experience, public profiles, proof of qualifications
• Tokenomics setup: vesting mechanism, token distribution, holders’ rights, inflationary and burn mechanisms
• Reports on technical audits, smart contract testing, confirmation of an MVP

Common mistakes and how to avoid them

Mistakes in documentation are one of the main reasons for rejection when listing a cryptocurrency. In COREDO’s practice, the most common are:

• Mismatch of information between the whitepaper, roadmap and the actual state of affairs
• Insufficient tokenomics detail: lack of a vesting mechanism, unclear token distribution
• Gaps in legal documents: missing licenses, outdated corporate agreements
• Smart contract vulnerabilities: no audit performed, logical errors found
• Lack of transparency in financial flows: unclear funding sources, no reporting

Sanctions screening before listing

Key steps:

• Check for matches against international sanctions lists (OFAC, EU, UN)
• Analysis of differences in regulatory requirements across jurisdictions: MiCA (EU), MAS (Singapore), FCA (United Kingdom), DFSA (Dubai)
• Conducting KYC procedures/AML for token sale participants: collection and verification of data, checking sources of income, documenting good faith
• Execution of NDAs and confidentiality agreements to protect confidential information

COREDO’s solution for automating sanctions screening and integrating with international databases minimizes risks and speeds up the listing process.

Assessment of the team and governance of a crypto project

Analysis of the team’s qualifications and reputation

Important aspects:

• Verification of founders’ experience in the blockchain industry: completed projects, publications, participation in industry events
• Checking conflicts of interest: transparency of governance structure, presence of independent directors
• Analysis of corporate agreements: role distribution, rights and responsibilities of participants, dispute resolution mechanisms

At COREDO we use international databases and industry rankings to objectively assess the team’s reputation.

How to evaluate community activity?

Metrics of crypto community activity and a project’s reputation in the crypto community are an important indicator of a startup’s prospects. COREDO’s solution for analyzing social networks and marketing campaigns makes it possible to distinguish organic growth from artificial.
Key metrics:

• Community size and activity: number of members, discussion frequency, engagement
• Organic growth vs artificial: analysis of dynamics, detection of bots and fake accounts
• Project reputation: reviews in industry media, participation in relevant events
• Quality of marketing strategy: transparency of communications, interaction with investors, availability of educational content

Key Steps of Due Diligence

• Forming a working group and setting the review objectives
• Collecting and structuring documents in an electronic data room
• Conducting preliminary legal, financial, and technical audits
• Preparing explanations and supporting information for investors and exchanges
• Preparing NDAs and non-disclosure agreements

The due diligence timeline for crypto projects, implemented by the COREDO team, usually ranges from 3 to 8 weeks depending on the complexity of the structure and jurisdictional requirements. The cost of listing a cryptocurrency on an exchange ranges from $10,000 to $250,000, including expenses for audit, legal review, and document preparation.

Interaction with investors and exchanges should be built on principles of openness, transparency, and readiness for additional questions. COREDO’s experience has shown that projects prepared for due diligence in advance pass the review faster and with lower costs.

Key takeaways and steps for entrepreneurs

• Successful completion of due diligence for a crypto project requires a comprehensive approach: legal, financial and technical audits must be integrated into a single strategy.
• Transparency of processes, compliance with regulatory requirements and proper structuring of documents: the key to investors’ and exchanges’ trust.
• Due diligence helps protect investments, minimize the risk of rejection and accelerate entry into global markets.
• Checklist questions for self-assessment before starting due diligence: Are all documents prepared? Has a smart contract audit been conducted? Are corporate agreements formalized? Have funding sources and compliance with sanctions requirements been checked? Has the community activity been assessed?

Stages of due diligence and key tasks

This article is a practical guide that reflects the many years of experience of the COREDO team in international legal and financial consulting for crypto projects. Here you will find tools, strategies and solutions that will help you pass due diligence and take your project to a new level of trust and resilience.

How to go through this process quickly, safely and with maximum benefit for the business? In this article I share a practical guide based on COREDO’s experience and recent industry data so that you receive not only answers to key questions but also strategic tools for long-term success. Read the article to the end – here you will find a step-by-step guide, analytical recommendations and real case studies that will help a non-resident open an account in the UK and minimize risks.

Main types of bank accounts for non-residents in the UK

Personal or corporate account: pros and cons

• A personal account at a British bank for a foreigner is suitable for sole proprietors, investors, and expats. Pros: ease of opening, minimal document requirements, quick access to online banking. Cons — limits on transactions, inability to conduct corporate transactions, and risk of account freezes if business activities are suspected.
• A corporate account in the UK for a non-resident is a tool for companies, branches, and holdings. Pros: expanded capabilities for managing funds, multi-currency operations, access to international payment systems, integration with accounting. Cons: stricter document requirements, comprehensive checks of beneficiaries and sources of income, and a lengthy approval process.

Types of accounts: multi-currency, investment, basic

• A multi-currency account allows working with GBP, EUR, USD and other currencies, reducing currency risk and optimizing international settlements.
• An investment account is used for operations with securities, real estate, and corporate bonds.
• A basic bank account for non-residents: a solution for startups and small companies that need minimal functionality without complex requirements.

UK Banks’ Requirements for Non-Residents

Overview of KYC, AML, CDD, EDD regulatory framework

• Know Your Customer (KYC): mandatory identity verification, document checks, analysis of income sources and company structure.
• Anti-Money Laundering (AML) — transaction monitoring, sanctions-list screening, risk assessment of the client.
• Customer Due Diligence (CDD): basic verification of information, transaction history, and company reputation.
• Enhanced Due Diligence (EDD): in-depth checks for high-risk clients, including beneficiaries from countries with elevated AML risks.

COREDO’s experience confirms: successful completion of compliance procedures in British banks is possible only with proper document preparation and a transparent business structure.

The role of the FCA and PRA in financial regulation

• FCA, the main regulator overseeing compliance with KYC/AML standards, Licensing of financial services and the protection of customers’ rights.
• PRA — is responsible for the resilience of the banking system, financial transparency, and risk management.

Documents required to open an account in England

Opening a bank account in England requires strict adherence to procedures and preparation of a complete set of documents. Below is the full list of documents needed to open an account in England, which will be required for successful identity verification and subsequent banking services.

Identity verification documents

• Passport (national or international) – the primary document required to open an account.
• ID card or driving licence, additional identity documents.
• Biometric Residence Permit – for residents with long-term status.
• Apostille and notarisation, required for documents issued outside the UK.

Proof of address for the account

• Utility bill: no older than 3 months.
• Tenancy agreement – signed by the landlord and stating the address.
• Council Tax notice (Council Tax): an official document from the local authorities.

Proof of income sources

• Bank statement for the last 6 months: confirms the stability of financial flows.
• Tenancy agreement, income statement and declared dividends – to confirm the legality of income.

Documents for opening a corporate account

• Company registration certificate in the UK
• Memorandum and articles of association of the legal entity
• Details of the company’s directors and beneficial owners
• Notarised power of attorney to open the account
• Apostille for documents for British banks

Our experience at COREDO has shown that a correctly prepared package of corporate documents is a key factor in successfully opening a corporate account in the United Kingdom for a non-resident.

Verification of a UK bank account

Verification, a multistage process requiring precision and transparency at every step.

Stages of the sanctions screening process

– Submission of the application – online or through a COREDO representative.
– Identity verification, document upload, client video verification, biometric identification.
– Address verification – automated document processing, cross-checking with databases.
– Sanctions list screening, checking the client against international sanctions and PEP lists.

Which banks open accounts for non-residents in the United Kingdom?

Choosing a bank is a strategic step that determines the speed of account opening and the quality of service.

Overview of banks and fintech solutions

• HSBC (United Kingdom): international transfers, corporate solutions, a high level of oversight.
• Barclays Bank, fast verification, flexible terms for startups and small businesses.
• Lloyds Banking Group, NatWest Group, Santander UK, Virgin Money: traditional banks with an extensive branch network and online banking.
• Wise (international transfers), Revolut (fintech solutions): multi-currency and business accounts, low fees, ability to open online.

Minimum balance and fees in a UK bank

Financial terms are one of the key factors when choosing a bank.

• The minimum balance in an account at a UK bank ranges from £0 (Wise, Revolut) to £1,000 (HSBC).
• Account maintenance fees: from £1/month (Wise) to £20/month (HSBC), plus additional charges for international transfers and foreign exchange transactions.

Managing AML risks when a foreign national opens an account

AML is the main challenge for non-residents opening an account in a UK bank.

Which payments are considered suspicious

• Large transactions without a confirmed intended purpose.
• Transfers to/from countries with high AML risk.
• Frequent cryptocurrency transactions without a transparent history.

Monitoring suspicious activity and sanctions lists

• Automated systems for client risk assessment.
• Regular audit of transactions and updating of compliance procedures.

Open an account in the UK online: practical steps

Step-by-step guide based on COREDO’s practice:

1. Registering on the bank’s online portal, choosing the account type, filling in the application form.
2. Submitting documents – uploading scans of passport, proof of address, sources of income.
3. Identity verification: video verification, biometric identification, digital signing of documents.
4. Address verification, automated checks, requesting additional documents if necessary.
5. Sanctions-list screening – checks against international databases.
6. Account activation, receiving account details, enabling online banking and the mobile app.

Timeframes for opening a corporate account in the UK

• Standard processing time: from 3 to 15 business days, depending on the bank and the completeness of the documents.
• Expedited process: possible with the involvement of a professional provider, prior agreement on the document package, and the use of electronic identification systems.

Taxes when opening an account in the United Kingdom

Opening a bank account in the UK for a non-resident entails a number of tax considerations:

• Taxation of income on the account depends on the company’s jurisdiction, tax residency status and the type of transactions.
• Tax treaties and FATCA: the United Kingdom participates in international agreements on the exchange of tax information, including FATCA and CRS, which require transparency of income sources and regular reporting.

Key findings and recommendations

Checklist for a non-resident to open an account in the UK:

• Prepare a complete set of documents: passport, proof of address, sources of income, corporate documents.
• Choose the optimal account type (personal vs. corporate) considering business goals.
• Assess the bank’s requirements regarding client reliability and AML risks.
• Use professional support to speed up the process and minimize the risk of rejection.
• Ensure transparency of the company’s structure and sources of income.

Frequently Asked Questions

Comparison of banks for non-residents

Conclusion

Why is this so important? Firstly, an EU financial license provides official recognition by European regulators, which is critical for building trust and reputation. Secondly, Licensing opens access to the single European market (passporting), allowing services to be offered in most EU countries without the need for re-licensing. Thirdly, compliance with EU financial services regulatory standards — from MiCA to FATF and AML/CFT — becomes a mandatory condition for attracting investors and partners, as well as for protecting the business from sanctions and reputational risks.

If you want to understand how to go through this process without mistakes, gain a deep understanding of all the nuances, and avoid common pitfalls, I recommend reading the article to the end. Here I share not theory but practice, tested on dozens of COREDO cases in the EU, Asia, and the CIS.

EU Financial Licenses in 2025

In 2025 the European financial market becomes even more segmented and technology-driven. For a successful registration of an EU financial company it is important to choose the correct type of license that matches the business model and scaling plans.

EU Electronic Money and Payment Services License

The EU electronic money license (EMI) and the payment institution license (PI) are the foundation for fintech companies, marketplaces, international platforms and startups working with payments, e-wallets, cards and transfers. In 2025 the most popular jurisdiction for such licenses remains Lithuania: here the minimum capital for an EMI starts from €350 000, and for a PI from €125 000. The Lithuanian electronic money license allows you to operate across Europe thanks to passporting, and to integrate with SEPA and major banks.

EU Forex Broker License

A license for an EU forex broker (Investment Firm License) is a mandatory requirement for companies providing services in currency trading, derivatives and securities. In Germany the minimum capital for such a license reaches $20 million, and the requirements for reporting transparency and internal control are extremely strict. The COREDO team implemented a licensing project for a brokerage platform in the Czech Republic: the key success factor was the integration of automated internal audit systems and preparation for multi-level BaFin inspections.

Crypto Licensing: MiCA and CASP

In 2025 new rules MiCA (Markets in Crypto-Assets Regulation) and CASP (Crypto-Asset Service Provider) come into force. The MiCA EU license and the CASP EU license become the standard for crypto exchanges, stablecoin issuers, crypto wallets, crypto brokers and other participants in the digital assets market. These licenses cover a wide range of services: from crypto trading and custody to staking, lending, derivatives and even crypto insurance.

Key requirements for an EU financial license

Success in licensing depends on thorough preparation and a deep understanding of regulator requirements. Over the past years the COREDO team has developed a unique set of best practices that help minimize risks and accelerate the process of obtaining a license.

Minimum capital and stability

Different types of licenses have their own capital requirements for an EU license.

Corporate structure and director requirements

EU regulators require that the board of directors include at least one EU resident with proven qualifications and experience in financial services. For an EU CASP license special requirements are imposed on directors:

KYC and AML/CFT policies

Compliance with AML/CFT policies for EU financial licenses and the implementation of effective KYC requirements for an EU license are key factors for successful licensing. Regulators require not only the existence of formal procedures but also the real functioning of client identification systems, transaction monitoring and employee training.

Security standards and data protection

Financial reporting and audit

Reporting for EU financial licenses includes regular reports to the regulator, a mandatory external audit, disclosure of information about risks and compliance with ESG criteria.

Step-by-step procedure for obtaining an EU license

The licensing process in the EU is strictly formalized, but with proper preparation it becomes manageable and predictable.

Preparation of documents and business plan

First stage: registration of an EU financial company and preparation of a complete set of documents: incorporation documents, a business plan with financial calculations, KYC questionnaires, proof of source of funds.

Interaction with the regulator and review

The next step is submitting the application and interacting with the regulator. This usually includes a preliminary review, interviews with key persons, and sometimes taking exams in compliance and risk management.

License issuance and start of operations

After successfully passing the review, the company receives the license and can begin operations.

License for crypto companies under MiCA and CASP

In 2025 licensing of crypto companies becomes a separate direction with unique requirements and challenges.

Capital and director requirements for CASPs

For MiCA and CASP the minimum capital depends on the type of services: for crypto exchanges: from €125 000, for custodial services, from €150 000, for stablecoin issuers, from €350 000. The director must be an EU resident, have experience in digital assets and an impeccable business reputation.

Physical office and staff

AML/CFT and KYC for crypto companies

Implementing strict AML/CFT policies for EU financial licenses and KYC procedures is a key element of licensing crypto companies. Regulators require integration with international databases, automated transaction monitoring and regular staff training.

Reporting and audit for crypto companies

License requirements in EU countries – comparison

Practical steps for entrepreneurs

Practical steps and recommendations for entrepreneurs are a tool that helps not only to shape a company’s growth strategy but also to increase business efficiency at every stage of development.

How to choose a reliable consulting partner

Obtaining a license in Europe: a task that requires not only legal expertise but also a deep understanding of the specifics of each jurisdiction.

How to minimize risks and avoid fines

financial services regulation in the EU is becoming increasingly strict. To minimize risks, it is important not only to comply with formal requirements but also to implement effective internal control mechanisms, compliance automation and regular employee training.

How can I get a license quickly and cheaply?

Key takeaways

financial license in the EU is not only a formal document but also a strategic asset that ensures legality, trust and access to European markets.