In 2025 the market for investment platforms is undergoing a transformation comparable in scale to the digital revolution in the banking sector: according to international studies, more than 60% of new investment platforms in the EU and Asia face regulatory barriers already at the registration stage, and every third project fails due to mistakes in choosing the licensing format or compliance. Why, despite the availability of information, do entrepreneurs and managers continue to waste time and resources on typical mistakes? How can you ensure not only legal compliance but also the long-term sustainability of an investment platform amid tightening MiCA requirements, the introduction of the Platform Economy Act 2025 and the growth of global oversight of offshore jurisdictions?
If you want to understand how to choose the optimal licensing format for an investment platform, avoid fines and sanctions, and ensure transparency for investors and regulators, I recommend reading to the end. You will receive not only answers to pressing questions but also tools for making strategic decisions.
Licensing of investment platforms in Europe, Asia, and Africa
The main licensing formats for investment platforms in Europe, Asia and Africa are determined by a combination of local regulatory requirements, the profile of permissible operations and control features. Understanding the key differences between licensing formats across regions is important for a strategic choice of jurisdiction and the successful launch of an investment platform.
Overview of formats and differences
Licensing of investment platforms: a fundamental stage for entering international markets. In COREDO’s practice we distinguish three basic formats:
- Investment intermediary license (Investment Intermediary/Investment Firm) – the classic option for the EU, the United Kingdom, Cyprus, Estonia, where the platform can offer brokerage, dealer and custodial services.
- Investment platform operator license (Crowdfunding/Investment Platform Operator) – in demand for collective investment platforms, Pre-IPO projects, peer-to-peer and equity crowdfunding, especially in the Czech Republic, Slovakia, Singapore.
- License for providing payment/fintech services (Payment Institution, EMI, crypto licenses) – relevant for platforms integrating digital assets, smart contracts, multi-currency settlements.
Hybrid models are common in Asia and Africa, where a license may combine investment and fintech components, and requirements for minimum capital, governance structure and IT infrastructure differ significantly.
Comparison of regulator requirements
| Region/Jurisdiction | License format | Minimum capital | Governance structure | AML/KYC requirements | Features |
|---|---|---|---|---|---|
| EU (MiCA, 2025) | Investment Firm, Crowdfunding Platform | €125 000–€730 000 | Experienced directors, independent compliance officer | Strict, automation, reporting | Direct supervision, MiCA, platform economy law |
| Cyprus, Estonia | Investment Firm, Crypto-Asset Service Provider | €50 000–€200 000 | Local director, IT officer | EU standards, local nuances | Fast registration, but high oversight |
| Singapore | Capital Markets Services, Crowdfunding | S$50 000–S$500 000 | Resident director, AML officer | MAS AML/KYC, regular audit | Flexibility, digitization of processes |
| UAE (Dubai, ADGM) | Investment Platform, Fintech License | $50 000–$250 000 | Local partner, independent audit | FATF, local standards | Attractiveness for global investors |
| Africa (Mauritius, South Africa) | Investment Dealer, Collective Investment Scheme | $25 000–$100 000 | Local director, compliance officer | FATF, local regulations | Accessibility, but compliance complexity |
MiCA legislation and local regulations
Licensing of investment platforms in the EU under MiCA 2025
Licensing of investment platforms in Asia and Africa
In Asia the key jurisdictions (Singapore, Hong Kong, UAE) offer flexible licensing formats, but require a local director, a corporate address and strict compliance with AML/KYC procedures. For example, in Singapore company registration takes 1–3 days, but an investment platform will require an MAS license, minimum capital from S$50 000, as well as an annual audit of IT infrastructure and corporate reporting.
How do I choose the platform licensing format?
Choosing the appropriate licensing format for an investment platform is a key stage that determines not only legality but also the growth potential of your investment-attraction business. To make a well-founded decision, it is important to consider a number of criteria that directly affect the platform’s further operation and compliance with regulators’ requirements.
Choosing the format
Choosing the licensing format for an investment platform is a strategic decision that determines not only the speed of market entry but also the long-term prospects of the business. What to pay attention to:
- Business model: investment platforms Pre-IPO, crowdfunding, brokerage services, digital assets – each type has its optimal license format.
- Target audience and geography: if you target investors from the EU, compliance with MiCA and European AML/KYC standards will be required; for Asian markets: integration with local requirements and corporate registers.
- Minimum capital and financial guarantees: in the EU and Singapore – from €50 000 to €730 000; in Africa, from $25 000, but regulatory risks are higher.
- IT infrastructure and technological resilience: modern platforms require not only a secure architecture but also regular internal audits, compliance automation, and integration with government registers.
- Long-term consequences of jurisdiction choice: errors at the start can lead to account blocks, sanctions, or inability to scale.
Impact of the format on compliance and liability
Legal risks when choosing a license
The most common mistakes encountered in COREDO’s practice:
- Underestimating minimum capital requirements: attempting to register a platform with insufficient capitalization leads to license denial or subsequent inspections.
- Using offshore structures without considering global oversight: since 2025 most regulators require disclosure of beneficiaries and a transparent ownership structure.
- Ignoring AML/KYC procedures: lack of automation in investor verification or a formal approach to internal audit is a direct route to fines and account freezes.
- Legal risks of smart contracts: incorrect integration or lack of legal expertise when implementing smart contracts can lead to transactions being declared invalid.
Practical recommendations for choosing a format
- Business plan and internal documents: preparing a detailed business plan, AML/KYC policy, conflict-of-interest management procedures, and internal audit is a mandatory condition for successful registration.
- Choosing a market-maker or STP broker model: for platforms with high asset volatility the STP broker model is preferable, minimizing conflicts of interest and increasing transparency.
- Organizing compliance: automation of KYC procedures, integration with government and industry registers, regular internal audits of IT infrastructure.
- Choosing a legal advisor: COREDO’s experience confirms that licensing support by a team with international expertise helps avoid common mistakes and speeds up the registration process.
Registration and Licensing of an Investment Platform 2025
The procedure for registering and licensing an investment platform in 2025: it is a multi-stage process that requires not only proper preparation of documents but also full compliance with current regulator requirements. Each stage — from registering a legal entity to submitting an application and obtaining a license — is important for the legal and successful operation of the platform in the investment market in 2025.
Step-by-step algorithm
- choice of jurisdiction and license format: analysis of requirements, preparation of a business plan, determination of the governance structure.
- Preparation of corporate documents: articles of association, internal rules, AML/KYC policies, internal audit procedures.
- Submission of the application and documents to the operators’ register: in the EU — via national regulators and European registers, in Asia — via local portals (for example, BizFile+ in Singapore).
- Compliance checks: IT infrastructure audit, investor verification, corporate structure review.
- obtaining the license and registration in government and industry registers.
- Post-licensing compliance: regular reporting, internal and external audits, updating procedures as legislation changes.
How do I submit documents to the register?
In the EU and the UK, transparency of corporate documents and disclosure of beneficial owners is of key importance. In Singapore, company registration and document submission are fully digitized, but appointment of a local director and an annual audit are required. In Africa, special attention is paid to disclosing ownership structures and compliance with FATF requirements.
Compliance, AML and KYC procedures for investment platforms
Compliance, as well as AML (anti-money laundering) and KYC (know your customer) procedures are becoming a key element of the regulatory framework for investment platforms. These tools not only minimize the risks of financial crime, but also enable platforms to comply with international requirements and best practices. Below we will look at the standards underlying these procedures and how they are implemented at the global level.
International standards and best practices
- Automation of investor verification procedures (eKYC, integration with government databases)
- Regular internal audits and updates to AML/KYC policies
- Appointment of an independent compliance officer and staff training
- Implementation of transaction monitoring systems and corporate risk management
Legal liability for violations
Scaling an investment platform: long-term development
Scaling and long-term development of an investment platform require not only a strategic approach but also strict compliance with ever-changing regulation. To successfully enter new markets or expand functionality, it is important to establish a reliable legal foundation to ensure sustainable growth without breaching the law.
Scaling without breaking the law
Scaling an investment platform requires not only a flexible IT architecture but also ongoing compliance with changing regulatory requirements. Solutions implemented by the COREDO team for platforms in the EU and Singapore include:
- Regular profitability assessments taking into account licensing and compliance costs
- Implementation of tools to ensure technological resilience (backups, cybersecurity, IT infrastructure audits)
- Integration with international compliance and transparency standards
Impact of global oversight and reporting
Key findings and recommendations for businesses
- The choice of licensing format should be based on the business model, target audience, minimum capital requirements and long-term implications for scaling.
- Common mistakes — underestimating capital requirements, a formal approach to AML/KYC, attempts to use offshore structures without considering global standards.
- Document preparation: a detailed business plan, internal policies, internal audit procedures and conflict-of-interest management.
- Choosing a jurisdiction: analyze not only the license cost but also requirements for corporate structure, IT infrastructure, transparency and reporting.
- Legal support: engaging consultants with international expertise and experience working with investment platforms in the EU, Asia and Africa.
FAQ: Answers to questions
- Underestimating local director requirements, a formal approach to AML/KYC, attempts to use offshore structures without disclosing beneficiaries.
- Minimum capital, a transparent governance structure, automation of AML/KYC, regular reporting and internal audit.
- Regular audit of IT infrastructure, implementation of cybersecurity systems, backups, integration with government registries.
- Detailing the business model, cash flows, AML/KYC procedures, internal controls and risk management.
If you are choosing a licensing format for an investment platform or planning to scale your business in the EU, Asia or Africa, the COREDO team’s experience will help you avoid common mistakes and implement a strategy that meets the strictest international standards.