Legal services:

Comprehensive legal solutions for contracts, disputes, and compliance. Our expert team ensures legal protection and strategic guidance for your business.

AML consulting:

Specialised AML consulting to develop and maintain robust anti-money laundering policies. We assess risks, offer ongoing support and provide tailored AML services.

Obtaining a crypto license:

We offer licensing and ongoing support for your crypto-business. We also offer licences in the most popular jurisdictions.

Registration of legal entities:

Efficient legal entity registration support. We manage documentation and interaction with the authorities, ensuring a seamless process for establishing your business.

Opening bank accounts:

We facilitate the opening of bank accounts through our extensive network of partners (European banks). Hassle-free process, tailored to your business needs.

COREDO TEAM

Nikita Veremeev
Nikita Veremeev
CEO
Pavel Kos
Pavel Kos
Head of the legal department
Grigorii Lutcenko
Grigorii Lutcenko
Head of AML department
Annet Abdurzakova
Annet Abdurzakova
Head of the Customer Success Department
Basang Ungunov
Basang Ungunov
Lawyer at Legal Department
Egor Pykalev
Egor Pykalev
AML consultant
Dmitry Vyalkov
Dmitry Vyalkov
Lawyer
Yulia Zhidikhanova
Yulia Zhidikhanova
Customer Success Associate
Pavel Batsulin
Pavel Batsulin
AML consultant
Diana Alchaeva
Diana Alchaeva
Customer Success Associate
Roza Muradova
Roza Muradova
AML consultant
Johann Schneider
Johann Schneider
Lawyer
Daniil Saprykin
Daniil Saprykin
Customer Success Associate

Our clients

COREDO’s clients are manufacturers, traders and financial companies, as well as wealthy clients from European and CIS countries.

Effective communication and fast project realisation guarantee satisfaction of our customers.

Exactly
Unitpay
Grispay
Newreality
Chicrypto
Xchanger
CONVERTIQ
Crypto Engine
Pion
In 2024, the share of stablecoins in the total volume of cryptocurrency transactions in Europe exceeded 58%. However, from July 1, 2025, the world’s largest stablecoin: USDT from Tether Limited: will be banned from trading on European exchanges and in transactions between companies. For many entrepreneurs and financial directors, this is not just news, but a challenge that could change the structure of international settlements, approaches to liquidity management, and even investment strategy. Why has the USDT ban in the EU become a reality, how are the new MiCA Regulation rules radically changing the market, and what steps should businesses take to maintain their competitive advantage?

Today, companies are faced not only with the need to quickly adapt to new requirements but also with building long-term compliance strategies amidst growing regulatory pressure, tightening AML compliance, and the emergence of central bank digital currencies. How can financial transparency, regulatory risk minimization, and efficiency in international settlements be ensured? Answers to these questions require not only a deep understanding of the market but also practical experience in implementing solutions across different jurisdictions.

In this article, I will explore in detail the reasons and consequences of the USDT ban in Europe, discuss how the COREDO team is helping clients prepare for the new rules, what alternatives are available to businesses, and which legal and compliance solutions truly work in practice. If you want not just to survive in the era of MiCA but to effectively scale your business, read to the end. Here you will find not only analysis but also specific recommendations, tested on real cases.

Reasons for the USDT Ban in the EU: MiCA Regulation of Cryptocurrencies and Tether Restrictions

How MiCA Changes the Rules for Stablecoins

The introduction of the MiCA Regulation (Markets in Crypto-Assets Regulation) marked a turning point for the European cryptocurrency market. This regulatory act for the first time established clear requirements for the issuance, circulation, and control of stablecoins, including parameters such as reserve transparency, audit, issuer responsibility, and mandatory compliance procedures.

Now any stablecoin used in the EU must meet strict criteria:

  • Full disclosure of reserves and liquidity guarantee mechanisms.
  • Regular independent audit.
  • Transparent AML/KYC procedures and AML process automation.
  • Compliance with capital and risk management requirements.
COREDO’s practice confirms: for companies focused on international settlements, these changes mean the need to review not only tools but also the entire policy of financial monitoring and corporate management of crypto assets.

Why Tether (USDT) Does Not Meet New Requirements

The main reason why USDT has become illegal in Europe is its non-compliance with MiCA standards for transparency and reserve management. Despite its scale and liquidity, Tether Limited does not provide a sufficient level of openness about the stablecoin’s backing structure, and independent audits are not always available in real-time. This creates risks for corporate clients related to possible asset freeze, liquidity reduction, and even suspicions of financial fraud.

Our experience at COREDO showed that many companies using USDT for cross-border transfers faced difficulties with financial due diligence and passing banking compliance procedures. As a result, using USDT is now associated with high regulatory risks and can lead to the blocking or confiscation of digital assets.

The Role of AML Compliance and Anti-Money Laundering

One of the key factors influencing the USDT ban was the tightened control over AML (Anti-Money Laundering) and the fight against money laundering through stablecoins. European regulators require not only blockchain transparency but also full traceability of operations, automation of KYC/AML, and the implementation of corporate risk management policies. Solutions developed in COREDO allow companies to integrate automated AML procedures and ensure compliance with new standards, which becomes a mandatory condition for working with any digital assets in the EU.

Consequences of the USDT Ban for Business and the European Crypto Market

Illustration for the section "Consequences of the USDT Ban for Business and the European Crypto Market" in the article "Why USDT is banned in the EU"

The Delisting of USDT on European Cryptocurrencies: How It Happens

From 2025, the largest cryptocurrency exchanges in Europe started a phased delisting of USDT, automatic conversion of balances into alternative stablecoins (such as USDC or euro-stablecoins), and a temporary freeze of funds until compliance procedures are completed. In several cases, the COREDO team assisted clients in transitioning to new tools, helping to minimize liquidity losses and avoid the blocking of corporate wallets.

Impact on International Transfers and Corporate Settlements

For many companies, the USDT ban became a challenge: traditional P2P cryptocurrency exchange schemes and cross-border transfers in stablecoins were put at risk. COREDO’s practice showed that timely transition to MiCA compliant stablecoins allows maintaining the speed and transparency of settlements, as well as reducing risks associated with corporate management of crypto assets.

How the USDT Ban Affects the P2P Market and Alternative Schemes

The P2P market in Europe is undergoing significant transformation: USDT delisting has led to liquidity reduction, fee increases, and the emergence of new settlement schemes using the digital euro and other compliant-stablecoins. COREDO’s solutions for integrating blockchain solutions allow companies to quickly adapt to new conditions and ensure the financial security of the business even under restrictions.

Legal Consequences of Holding USDT in the EU After the Ban

Holding USDT after the ban takes effect can lead to serious legal consequences: from fines and sanctions to confiscation of digital assets at the request of regulators. At COREDO, we recommend conducting a corporate wallet audit, timely replacing USDT with MiCA compliant stablecoins, and updating compliance strategies to minimize risks.

Alternatives to USDT in Europe: What Businesses Should Choose After the Ban

Illustration for the section "Alternatives to USDT in Europe: What Businesses Should Choose After the Ban" in the article "Why USDT is banned in the EU"

Comparison of Stablecoins: USDC, DAI, Digital Euro

Stablecoin MiCA Compliance Reserve Transparency Availability in the EU Fees Issuer
USDC Yes High High Medium Circle
DAI Partially Decentralized High Medium MakerDAO
Digital Euro Yes Maximum In progress Low ECB
USDT No Low Limited Medium Tether Limited

USDC from Circle and the digital euro being introduced by the ECB are becoming the main alternatives for settlements and liquidity storage. DAI, as a decentralized stablecoin, partially meets MiCA but requires separate risk assessments and compliance procedures.

How to Prepare a Company for Transitioning to New Stablecoins

Transitioning to compliant-stablecoins requires not only technical migration but also revisiting corporate policies, automating KYC/AML, and integrating new blockchain solutions. COREDO’s experience shows: timely preparation, staff training, and updating internal procedures can minimize costs and ensure a seamless transition to new tools.

Implementation of Digital Euro and the Impact of CBDC on the Stablecoin Market

The introduction of CBDC (Central Bank Digital Currency) – digital euro – forms a new infrastructure for corporate settlements, reducing fees, and increasing financial transparency. COREDO’s solutions for integrating CBDC into corporate processes allow businesses not only to meet new requirements but also to leverage the advantages of digital currencies for scaling businesses.

AML Compliance and Legal Support for Cryptocurrency Transactions in New Conditions

Illustration for the section "AML Compliance and Legal Support for Cryptocurrency Transactions in New Conditions" in the article "Why USDT is banned in the EU"

How AML and KYC Procedures for Crypto Companies Will Change

With the MiCA Regulation coming into force, AML and KYC requirements are significantly tightened: now every crypto asset transaction must be accompanied by automated monitoring, financial due diligence, and cryptocurrency reporting. COREDO’s practice shows that integrating modern compliance solutions not only reduces operational risks but also boosts trust from banks and investors.

Registration and Licensing of Crypto Companies in the EU After the USDT Ban

Registration of crypto companies and Licensing of services in the EU is now impossible without full compliance with the new MiCA standards, including information disclosure on beneficiaries, the introduction of compliance officers, and automation of AML processes. The COREDO team has implemented dozens of successful cases of registration and licensing of cryptocurrency services in the Czech Republic, Estonia, Slovakia, and Cyprus, helping clients navigate all due diligence stages and obtain necessary permits.

Practical Recommendations for Legal Support and Risk Minimization

To minimize risks, it is important not only to implement automated compliance strategies but also to regularly conduct an audit of corporate policies, update contracts with counterparties, and train staff on new requirements. COREDO’s solutions in the field of legal support allow companies to protect investors’ interests, ensure financial transparency, and minimize tax and regulatory risks.

Key Conclusions and Practical Steps for Business

  • Conduct an audit of current crypto assets and assess the risks of holding USDT.
  • Prepare for the transition to MiCA compliant stablecoins (USDC, DAI, digital euro).
  • Review and automate AML/KYC procedures, implement modern compliance solutions.
  • Update corporate policies on crypto asset management and integrate blockchain solutions.
  • Conduct staff training and consult COREDO experts on new EU requirements.
  • Review contracts with counterparties, considering new regulatory restrictions.
  • Prepare cryptocurrency reporting and ensure financial transparency.

FAQ – Answers to Key Questions from Entrepreneurs and Managers

How will the USDT ban in the EU affect my company if we use stablecoins for settlements?
The ban will necessitate a transition to compliant stablecoins. Lack of timely migration may lead to blocked funds and sanctions.
Which alternatives to USDT are the safest for businesses in Europe?
USDC and digital euro, are most compliant with MiCA and ensure maximum transparency, DAI requires separate risk assessments.
How to ensure compliance with the new MiCA requirements when working with cryptocurrencies?
Implement automated AML/KYC procedures, conduct a corporate policy audit, and use only licensed services.
What risks does storing USDT on corporate wallets pose after the ban?
Risks include fund freezing, fines, asset confiscation, and loss of liquidity access.
How will the cost and speed of international transfers change after the USDT delisting?
Transition to compliant stablecoins and digital euro may reduce fees and increase transparency, but will require process adaptation.
What threatens companies for storing USDT in the EU after the ban?
Legal consequences: from fines to criminal liability and asset confiscation.
How will AML and KYC procedures for crypto companies change in the EU?
Financial monitoring, process automation, and mandatory reporting on all operations will be strengthened.

Prospects for Cryptocurrency Regulation: Experience from the EU, Asia, and Africa

Comparison of Stablecoin Regulation Approaches in the EU, Asia, and Africa

The EU’s experience with MiCA implementation has become a benchmark for several Asian and African countries. In Singapore and Japan, requirements for crypto company licensing are also being tightened, financial due diligence and AML process automation are being introduced. In Africa, there is a growing interest in DeFi regulation and the integration of blockchain solutions into corporate processes.
The COREDO team regularly supports projects on company registration and licensing of cryptocurrency services in Singapore, Dubai, the United Kingdom, and other jurisdictions, helping clients adhere to international standards and minimize regulatory risks.

Long-term Consequences for the Cryptocurrency Market and Investment Attractiveness

The USDT ban and MiCA implementation will lead to increased investment attractiveness of compliant stablecoins, improved market transparency, and reduced risks of financial fraud. However, the liquidity structure on European crypto exchanges will change, and companies unprepared for new requirements will face restricted market access and sanctions.

COREDO’s practice shows: timely adaptation to new rules, implementation of automated compliance solutions, and integration of blockchain technologies are key factors for long-term success in the international digital asset market.
In 2024, the volume of cryptocurrency transactions in EU countries exceeded 1.3 trillion euros, with more than 7% of this turnover attributed to Slovakia. However, only 18% of companies, according to the European Banking Authority, are confident in their ability to comply with new AML and financial monitoring requirements. Why is such a dynamically growing market facing such serious barriers? How to ensure the legalization of cryptocurrency in Slovakia without losing business flexibility and avoiding account blockage?
Today’s cryptocurrency regulation in Slovakia is not just a set of laws, but a strategic tool for protecting investors, fostering innovation, and entering international markets. But these opportunities also come with serious challenges: from licensing complexities to the nuances of taxation and banking services. In this article, I will discuss how the regulatory system works in practice, what requirements are imposed on crypto businesses, and why Slovakia is becoming a focal point for international projects. If you want to understand how to effectively start or scale a cryptocurrency business in the EU – read to the end. Here you will find not only a legislative analysis but also practical recommendations based on the experience of the COREDO team.

Laws on Cryptocurrency in Slovakia: Basics of Regulation and Legal Status

Illustration to the section "Laws on Cryptocurrency in Slovakia: Basics of Regulation and Legal Status" in the article "Cryptocurrency Regulation in Slovakia"

Slovakia recognizes cryptocurrency as a special type of virtual asset, which is not a legal tender but is permitted for circulation and taxation. This approach aligns with European directives on cryptocurrencies and FATF recommendations, ensuring harmonization of regulation with other EU countries. Slovakia views virtual assets as property, operations with which are subject to accounting and reporting, and digital wallets and their regulation are part of a comprehensive system for controlling the origin of funds.
COREDO’s practice shows that for clients launching a cryptocurrency business in Slovakia, understanding the status of tokens, NFTs, and other digital assets is crucial—their legal qualification affects licensing, taxation, and compliance requirements.

Main Legislative Acts and Their Impact on Crypto Business

Three key laws form the basis of cryptocurrency regulation in Slovakia:
  • Corporate Income Tax Law in Slovakia, which sets the rules for taxing income from virtual asset operations.
  • Accounting Law for Cryptocurrency Companies – establishes requirements for financial reporting and audit of operations.
  • Anti-Money Laundering (AML) Law, which implements FATF recommendations and European directives, including mandatory KYC procedures for crypto exchanges and wallet providers.
A solution developed by COREDO for one of the international crypto exchanges included the integration of automated financial monitoring systems, which not only met the Slovak Ministry of Finance requirements but also increased trust from banks and investors.

Cryptocurrency Licenses in Slovakia: Types of Licenses and Requirements

Illustration to the section "Cryptocurrency Licenses in Slovakia: Types of Licenses and Requirements" in the article "Cryptocurrency Regulation in Slovakia"

There are two main categories of licenses for crypto businesses in Slovakia:
  • Cryptocurrency Exchange Licenses: required for companies that conduct exchanges of digital assets for fiat money and vice versa.
  • Cryptocurrency Storage Licenses – required for virtual wallet providers and custodial services.
For both categories, the following are mandatory:
  • Appointment of a compliance officer with experience in AML.
  • Implementation of KYC procedures for crypto exchanges, including customer identification and verification.
  • Description of business model, management structure, and beneficiary transparency.
Our experience at COREDO showed that for successful licensing, it’s important to prepare internal policies in advance for due diligence of crypto business clients and automation of monitoring processes.

Step-by-Step Guide for Obtaining a Cryptocurrency License for Foreign and Local Companies

  1. Choose the legal form and prepare the founding documents.
  2. Collect a package of documents: charter, information about beneficiaries, business plan, AML policy, confirmation of the management’s business reputation.
  3. Submit the application to the Financial Administration of the Slovak Republic.
  4. Check for compliance with requirements: transparency of the crypto business management structure, presence of compliance officer, implemented KYC/AML procedures.
  5. Receive the license and register in the relevant state registers.
The COREDO team has implemented projects where, for foreign companies, a step-by-step roadmap was built: from choosing the structure to integrating automated systems for fund source control.

AML/CTF Compliance and Financial Monitoring in the Cryptocurrency Business in Slovakia

Illustration to the section "AML/CTF Compliance and Financial Monitoring in the Cryptocurrency Business in Slovakia" in the article "Cryptocurrency Regulation in Slovakia"

Slovakia requires full AML compliance from cryptocurrency companies, including:
  • Mandatory KYC procedures for crypto exchanges.
  • Maintaining a registry of transactions with virtual assets.
  • Financial monitoring of operations and automation of compliance processes.
COREDO’s practice confirms that automating due diligence and implementing fund source control tools minimizes risks and expedites business scaling. For one client, we integrated a solution that met international FATF standards and European directives, ensuring resistance to financial fraud and increasing bank loyalty.

Fines and Sanctions for Non-Compliance with AML/CTF Requirements

Fines for non-compliance with AML/CTF standards in Slovakia can reach 1 million euros and, in some cases, lead to license revocation and account blocking. The Financial Administration of the Slovak Republic actively uses financial monitoring tools for operations and audits of cryptocurrency operations to identify violations.
COREDO’s recommendation: regular internal auditing and staff training are key to resilience against financial fraud and maintaining your license.

Taxation and Financial Reporting for Cryptocurrency Companies in Slovakia

Illustration to the section "Taxation and Financial Reporting for Cryptocurrency Companies in Slovakia" in the article "Cryptocurrency Regulation in Slovakia"

Income from cryptocurrency operations in Slovakia is subject to corporate income tax at a rate of 21% for legal entities. The Slovak Corporate Income Tax Law requires all cryptocurrency transactions to be recorded in accounting and reporting on transactions with virtual assets to be provided.
A COREDO project on integrating cryptocurrencies into corporate finance demonstrated that correct classification of income and expenses allows for optimizing the tax burden and avoiding claims from tax authorities.

Financial Reporting and Transparency of Management Structure

Financial reporting for crypto companies in Slovakia must comply with EU standards and include:
  • Disclosure of information about beneficial owners.
  • Audit of cryptocurrency operations.
  • Transparency of the management structure of the crypto business.
For COREDO clients, we implement procedures to ensure transparency and reliability of corporate governance, which is critically important for attracting investors and passing due diligence.

Banking Services and Cryptocurrency Integration

Illustration to the section "Banking Services and Cryptocurrency Integration" in the article "Cryptocurrency Regulation in Slovakia"

Banking services for crypto businesses in Slovakia come with several restrictions:
  • Not all banks open accounts for cryptocurrency companies due to financial monitoring operation risks.
  • Delays are possible with international payments in cryptocurrency.
  • Full compliance with AML/CTF standards and transparency of fund sources is required.
Risk management developed by COREDO for clients includes preliminary business process auditing and preparation of document packages confirming the legality of fund sources.

Practical Aspects of Cryptocurrency Settlements and International Payments

Features of cryptocurrency settlements in Slovakia include:
  • The need to integrate cryptocurrencies into corporate finance through legal payment gateways.
  • Compliance with security standards for crypto exchanges and custodial services.
  • Maintaining reporting on international cryptocurrency payments considering EU requirements.
A COREDO solution for one client allowed automating compliance processes and simplifying interaction with banks, accelerating international settlements and reducing operational risks.

Advantages of Registering a Crypto Business in Slovakia

Slovakia offers several strategic advantages:
  • Transparent and predictable cryptocurrency regulation in Slovakia, aligning with international cryptocurrency regulation standards and FATF recommendations.
  • Openness to foreign investors and flexible licensing conditions for cryptocurrency companies.
  • Low entry threshold for startups and innovative projects.
COREDO’s case: for a European fintech company, registering a crypto business in Slovakia allowed entry into EU markets, reduced administrative costs, and simplified the licensing procedure.

Key Risks, Implementation Challenges, and Long-term Consequences of Legislative Changes

Main risks for businesses when working with cryptocurrency in Slovakia:
  • Frequent legislative changes and tightening requirements for corporate governance in the crypto sphere.
  • Legal risks for investors related to the classification of tokens and virtual assets.
  • Scaling risks for crypto companies due to banking service restrictions and the need for constant compliance process updates.
The COREDO team’s recommendation: regular monitoring of legislative changes and flexible adaptation of internal policies can minimize long-term consequences for investors and crypto business owners.

Practical Steps and Recommendations for Launching and Scaling a Cryptocurrency Business in Slovakia

  • Conduct comprehensive due diligence of crypto business clients and implement compliance process automation.
  • Ensure transparency of the crypto business management structure and disclosure of beneficiary information.
  • Adhere to international FATF standards when launching a crypto business in Slovakia, integrating fund source control and fraud prevention.
  • Engage with regulators and financial authorities at early stages, using best practices developed by COREDO.
  • Regularly update internal policies and train staff on new AML/CTF requirements.
For a COREDO client, we implemented a project to scale a cryptocurrency business under Slovak regulation: compliance process automation and audit tool integration reduced costs by 30% and expedited entry into new EU markets.

Key Conclusions and Recommendations for Entrepreneurs and Investors

  • Cryptocurrency regulation in Slovakia creates unique opportunities for business scaling but requires a deep understanding of legislation and compliance.
  • The cryptocurrency business in Slovakia benefits from transparency, flexible licensing, and integration of international standards.
  • Compliance of Slovak cryptocurrency companies: a key to sustainability and long-term success: automation, audit, transparency of beneficiaries, and regular interaction with regulators become market standards.
  • Integration of cryptocurrencies into corporate finance and tax load optimization is only possible with accurate financial reporting and compliance with security standards for crypto exchanges.
COREDO’s practice proves that a strategic approach to launching and developing a crypto business in Slovakia allows not only minimizing legal and financial risks but also creating a solid foundation for growth in a rapidly changing digital asset market.

Introduction: The Importance of Proper Drafting of International Contracts

Illustration for the section "Introduction: The Importance of Proper Drafting of International Contracts" in the article "How to Properly Draft Contracts in International Deals"

Did you know that up to 70% of international deals face legal challenges already at the contract drafting stage? This is not just a statistic; it’s a daily reality for entrepreneurs entering the markets of Europe, Asia, and the CIS. One incorrect clause, an overlooked license, or a wrongly chosen jurisdiction — and the deal can turn into multimillion-dollar losses, legal battles, or even business blockage.
At Coredo, we see companies striving for globalization often underestimate the risks associated with drafting international contracts. Meanwhile, competent legal support is not just a formality, but a foundation for scaling the business, protecting assets, and minimizing tax and regulatory risks. This is why I decided to share a practical guide based on our experience in supporting hundreds of deals in the EU, UK, Singapore, Cyprus, Estonia, Czech Republic, Slovakia, the UAE, and other jurisdictions.
If you want to not only avoid common mistakes but also gain a competitive edge through transparent, secure, and efficient international contracts, this article is for you. Here, you’ll find not just theory but also concrete steps, case studies from COREDO’s practice, and strategic recommendations to help your business confidently operate on the international stage.

International Contracts and Deal Drafting: Basic Concepts and Legal Foundations

Illustration for the section "International Contracts and Deal Drafting: Basic Concepts and Legal Foundations" in the article "How to Properly Draft Contracts in International Deals"

Types of International Contracts and Agreements

International contracts form the basis of any cross-border activity. They regulate relationships between companies from different countries, establish the rights and obligations of parties, and set the procedure for dispute resolution. In COREDO’s practice, we most frequently encounter the following types of agreements:
  • Sale and Purchase Agreements – for the supply of goods and services between residents of different countries.
  • Licensing and Franchising Agreements, for the transfer of technologies, brands, and business models.
  • Investment Agreements – for capital raising and joint projects.
  • Agency and Distribution Agreements, for entering new markets through local partners.
  • Joint Venture (JV) Agreements, for creating alliances and joint enterprises.
Each of these types requires a special approach to structure, wording, and drafting procedure. For instance, when registering a company in the UK or Cyprus, not only the contract itself but also accompanying documents such as the charter, memorandum of association, address confirmation, and, in some cases, licenses and regulatory approvals are critical. The COREDO team always emphasizes that there are no universal templates; every contract must be tailored to the business specifics and the requirements of the particular jurisdiction.

Main Stages of International Deal Drafting

Drafting international deals is a multi-step process that starts with partner selection and ends with the fulfillment of obligations. Our experience shows that the following stages are the most critical:
  • Preliminary Negotiations and Due Diligence, counterparty check, analysis of their financial status, reputation, and regulatory compliance.
  • Condition Alignment – defining the contract’s subject, price, timeline, guarantees, calculation procedure, and party responsibilities.
  • Document Preparation and Para-signing – drafting the agreement, discussing it, and preliminarily signing (or para-signing) it.
  • Final Signing and Entry into Force: signing the final version, sometimes involving a notary or state registration.
  • Fulfillment and Support – monitoring compliance with terms, resolving arising disputes, and making amendments.
At each stage, there can be legal, tax, and regulatory risks. For example, when registering a company in the UK, it’s essential not only to properly draft founding documents but also to register with tax authorities, obtain necessary licenses, and comply with AML (Anti-Money Laundering) requirements. COREDO’s practice confirms that transparency and detailed elaboration at each stage are the keys to successful international deals.

Structure and Content of International Contracts: Key Elements

Illustration for the section "Structure and Content of International Contracts: Key Elements" in the article "How to Properly Draft Contracts in International Deals"

Title, Preamble, Main and Final Parts

The structure of an international contract is not merely a formality but a tool for minimizing risks and enhancing the legal strength of the document. At COREDO, we recommend adhering to the following scheme:
Contract Element Description and Function
Title Name, parties, contract subject, date, and place of signing
Preamble Goals, principles, references to international law norms, and conclusions basis
Main Part Rights, obligations, execution conditions, calculation procedure, guarantees, and liability
Final Part Entry into force, termination, language, signatures, dispute resolution procedure
Appendices Protocols, rules, exchange letters, additional agreements
For instance, when drafting a sale and purchase agreement between an EU company and an Asian partner, it’s crucial to state not just the parties but also the applicable law and the dispute resolution mechanism (arbitration, court) in the preamble. In the main part, detail the supply terms, Incoterms, timelines, payment procedures, and quality guarantees. In the final part, determine when the contract comes into force, termination conditions, and the communication language.

Specific Wording and Legal Techniques

Legal techniques for drafting international contracts require special attention to wording. Ambiguous or overly general terms can lead to disputes and litigation. At COREDO, we always recommend:
  • Using clear, unambiguous terms, avoiding ambiguities.
  • Specifying the applicable law and jurisdiction for dispute resolution.
  • Detailing the amendment mechanism and notification procedures.
  • Including confidentiality and personal data protection clauses, especially in light of GDPR and other international standards.
For example, when drafting a licensing agreement for software use between a Singapore company and a European partner, it’s essential to not only define the scope of rights but also to foresee the audit procedure, termination conditions of the license, and liability for copyright infringement.

Vienna Convention on the Law of Treaties and International Standards of Drafting

Illustration for the section "Vienna Convention on the Law of Treaties and International Standards of Drafting" in the article "How to Properly Draft Contracts in International Deals"

Key Provisions of the Vienna Convention

The 1969 Vienna Convention on the Law of Treaties is a fundamental document regulating the conclusion, execution, and termination of international contracts. Although originally developed for interstate relations, many of its principles apply in commercial practice, especially when resolving disputes in international arbitration.
Key provisions of the Convention to consider in drafting international deals:
  • Freedom of Contract: parties have the right to determine the agreement’s terms independently, provided they do not contradict imperative norms of international law.
  • Good Faith: parties must act in good faith in executing the contract.
  • Conclusion Procedure: a contract is considered concluded from the moment consent is expressed to be bound by its terms.
  • Contract Invalidity: a contract may be deemed invalid in cases of mistake, fraud, bribery, or coercion.
In COREDO’s practice, we often encounter situations where parties overlook these principles, leading to serious legal consequences. For example, an attempt to circumvent tax or regulatory requirements of one jurisdiction can result in a contract being deemed invalid and significant financial losses.

Procedures for Signing, Para-signing, Approval, and Ratification

The procedure for concluding international agreements can include several stages:
  • Para-signing, preliminary signing of the document by the initials of authorized persons, confirming agreement with the text but not obliging execution.
  • Conditional Signing, signing with a reservation for subsequent approval, like by a board of directors or a regulator.
  • Final Signing, signing the final version of the document, after which it comes into effect.
  • Approval and Ratification, in some cases (especially for government contracts or deals involving state-owned companies), additional approval by higher authorities or parliamentary ratification might be required.
In commercial practice, a simplified procedure usually prevails, such as exchanging signed documents through email or specialized electronic document management platforms. However, in certain jurisdictions (e.g., UK company registration or obtaining a financial license in Cyprus), the original document with a “wet” signature and sometimes an apostille or legalization is required.

Practical Aspects of Drafting Contracts in International Deals

Illustration for the section "Practical Aspects of Drafting Contracts in International Deals" in the article "How to Properly Draft Contracts in International Deals"

How to Properly Draft an International Sale and Purchase Agreement

An international sale and purchase agreement is one of the most common types of contracts in COREDO’s practice. Here are the key steps we recommend for entrepreneurs:
  1. Identify the Parties and Contract Subject – clearly specify names, details, and describe the product or service.
  2. Set Price and Payment Terms: state currency, payment terms, deferral conditions, and penalties for delay.
  3. Define Delivery Terms (Incoterms) – choose a suitable delivery basis (FOB, CIF, EXW, etc.) to minimize risks and expenses.
  4. Detail Guarantees and Liability – specify warranty periods, return procedures, conditions for compensation of damages.
  5. Specify Applicable Law and Dispute Resolution – choose jurisdiction, arbitration, or court for possible disagreements.
For example, when handling a deal between a European equipment supplier and an Asian buyer, the COREDO team always emphasizes the necessity of a detailed description of the product’s technical specifications, acceptance conditions, and dispute resolution through international arbitration.

Documents Needed for Signing and Registration of International Agreements

Signing and registration of international agreements typically require the following documents:
  • Company Foundation Documents – charter, registration certificate, registry extract.
  • Powers of Attorney: confirmation of the authority of individuals signing the contract.
  • Financial Statements – to confirm the counterparty’s solvency.
  • Licenses and Permits – if activities require licensing (e.g., financial, pharmaceutical, telecommunications).
  • Documents Confirming Compliance with AML Requirements – particularly relevant for deals involving financial institutions.
In some cases (e.g., UK company registration), additional requirements include address confirmation, business activity description, and tax authority registration. COREDO’s practice demonstrates that the absence of even one of these documents can result in delays or refusal to register the deal.

The Importance of Licenses, Permits, and Compliance with Customs/Currency Controls

Licenses and permits are crucial aspects of international deals, especially in regulated industries (finance, cryptocurrency, payment services, healthcare). For instance, providing payment services in the EU requires an EMI (Electronic Money Institution) license, and activities involving crypto-assets need registration with relevant regulatory bodies.
Additionally, international trade mandates compliance with customs and currency controls. For example, exporting goods from the EU to Asian countries requires export declaration, certificates of origin, and sometimes special permits. Violating these requirements can lead to cargo delays, fines, or even criminal liability.
The COREDO team always supports clients at all stages of obtaining licenses and permits, helping to minimize risks and accelerate market entry.

Risks and Legal Support for International Deals

Typical Errors and Risks in Drafting International Contracts

In COREDO’s practice, we regularly encounter typical mistakes entrepreneurs make when drafting international contracts:
  • Insufficient Counterparty Check: Collaboration with an unreliable partner can lead to non-fulfillment and financial losses.
  • Inaccurate Wording – ambiguous terms cause disputes and litigation.
  • Ignoring Regulatory Requirements, lacking necessary licenses, or violating AML norms can result in account blocking, fines, or criminal charges.
  • Not Considering Tax Implications, improper deal structuring can lead to double taxation or claims from tax authorities.
For instance, when supporting a business acquisition deal in the Czech Republic, the COREDO team discovered that the seller lacked necessary permits to operate, which could lead to the deal being deemed invalid and significant losses for the buyer.

Legal Proceedings and Dispute Resolution Methods

International disputes are a special category of cases requiring deep knowledge of private international law, arbitration procedures, and practice in enforcing decisions across different jurisdictions. At COREDO, we recommend pre-specifying the dispute resolution procedure in the contract, through international arbitration (e.g., ICC, LCIA, SIAC) or national courts.
Key aspects to consider:
  • Choice of Arbitration Institution and Venue: influences procedure, duration, and cost of the dispute resolution.
  • Language of Arbitration Proceedings – important to determine the language for negotiations and document creation.
  • Enforcement of Decisions, ensure the jurisdiction is a signatory of the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
COREDO’s practice confirms that a well-drafted arbitration clause is an effective tool for protecting business interests in international deals.

Modern Trends and Technologies in Drafting International Contracts

Simplified Procedures: Document Exchange, Electronic Signatures, LegalTech

Modern technologies are drastically changing the approach to drafting international contracts. At COREDO, we actively utilize platforms for electronic document management, electronic signatures (e-signature), and LegalTech solutions to automate routine processes.
  • Speed: A deal can be concluded within hours, even if parties are in different world parts.
  • Security: contemporary systems ensure data protection and document authenticity confirmation.
  • Transparency: all deal stages are recorded electronically, minimizing manipulation risks.
For example, when handling a deal between a Singapore company and an Estonian partner, the COREDO team organized contract signing via the DocuSign platform, saving parties time and avoiding the need for a physical meeting.

The Impact of Brexit and Other Geopolitical Factors on International Deals

Brexit significantly altered the rules for drafting deals between EU companies and the UK. Contract conclusions now require accounting for new customs, tax, and regulatory requirements. For example, goods delivery from the EU to the UK necessitates additional documents, customs duties, and compliance with new standards.
Additionally, geopolitical changes (sanctions, currency regulation changes, tightened AML requirements) require continuous monitoring and contractual practice adaptation. At COREDO, we constantly analyze current changes and swiftly inform clients of new risks and opportunities.

Scaling Business Abroad Using International Contracts

How to Use International Contracts to Enter New Markets

International contracts are not only a tool for one-off deals but also a foundation for business scaling. At COREDO, we help clients build long-term partnerships, create joint ventures, and open branches and subsidiaries in new jurisdictions.
  • Building a Network of Reliable Partners through agency, distribution, and franchising agreements.
  • Optimizing Tax and Legal Structure: considering the specifics of each jurisdiction.
  • Utilizing International Trade Agreements – to reduce customs barriers and expedite market entry.
For example, when supporting a European IT company’s entry into the UAE market, the COREDO team developed a joint venture structure with a local partner, allowing the client to quickly obtain necessary licenses and commence regional operations.

Legal Support and Choosing Reliable Partners

Successful business scaling abroad is impossible without professional legal support. At COREDO, we not only assist in drafting contracts but also support clients through all stages, from due diligence to dispute resolution and business process optimization.
  • Transparency, all work stages and potential risks are discussed openly.
  • Individual Approach, every decision is tailored to the business specifics and client goals.
  • Comprehensiveness: we support not only legal but also financial, tax, and regulatory aspects of the deal.

Key Conclusions and Practical Recommendations for Entrepreneurs

Checklist: How to Minimize Risks and Ensure Successful International Deals

Stage Recommendations
Partner Selection Conduct due diligence, check reputation, financial status, and AML compliance
Contract Preparation Use clear wording, specify applicable law, dispute resolution procedure
Registration and Licensing Ensure all necessary documents, licenses, and permits are in place
Obligation Execution Monitor condition compliance, react promptly to changes
Support Engage professional consultants to minimize risks and optimize processes

Where to Seek Support

If you plan to enter international markets, conduct complex deals, or obtain financial licenses, the COREDO team is ready to be your reliable partner. Our experience, expertise, and individualized approach will help you minimize risks, save time, and achieve your goals.

International contracts aren’t just paperwork. They’re the foundation of your global success. Entrust their drafting to professionals.
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