COREDO – EU Legal & Compliance Services Expert legal consulting, financial licensing (EMI, PSP, CASP under MiCA), and AML/CFT compliance across the European Union. Headquartered in Prague, we provide seamless regulatory solutions in Germany, Poland, Lithuania, and all 27 EU member states.
Alena Mach
25.11.2025 | 6 min read
Updated: 16.10.2026
In 2025 the market for investment platforms is undergoing a transformation comparable in scale to the digital revolution in the banking sector. New investment platforms in the EU and Asia can face regulatory barriers already at the registration stage, and mistakes in choosing the licensing format or compliance can make a project fail. 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 and the growth of global oversight of offshore jurisdictions?
I have observed that over the past few years the requirements for licensing investment platforms have become not only more complex but also more deeply integrated with IT infrastructure, AML/KYC procedures and corporate governance. At COREDO we have repeatedly encountered cases where even experienced entrepreneurs underestimated the impact of choosing a jurisdiction or license format on business development strategy, scaling and attracting investment. Today’s article is not just an overview but a practical guide in which I share the COREDO team’s experience: from analyzing key licensing formats to common mistakes and strategies to prevent them.
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 (investment firm) | Investment Firm (MiFID II) | Initial capital €75 000, €150 000 or €750 000, depending on the services and whether client money or assets are held | Experienced directors, independent compliance officer | Strict, automation, reporting | Ongoing own funds: the highest of initial capital, a quarter of fixed overheads and the K-factor requirement; small and non-interconnected firms skip K-factors |
| EU (crowdfunding) | Crowdfunding service provider (Crowdfunding Regulation) | Prudential safeguards of at least €25 000 or a quarter of annual fixed overheads, whichever is higher | Experienced directors, independent compliance officer | Strict, automation, reporting | Own funds, insurance or a comparable guarantee, or a combination; does not apply where IFR, CRR, e-money or payment-institution capital rules already apply |
| Cyprus, Estonia | Crypto-Asset Service Provider (MiCA) | €50 000, €125 000 or €150 000 by service, or a quarter of annual fixed overheads if higher | Registered office in an EU country where it provides at least part of its services; effective management in the EU; at least one EU-resident director | EU standards, local nuances | Same MiCA rules as in other EU countries; own funds, insurance or a combination |
| Singapore | Capital Markets Services license (broker-dealer, including securities-based crowdfunding) | Base capital S$50 000–S$5 million for broker-dealers and S$50 000–S$1 million for crowdfunding operators, depending on products, clients and handling of client assets | At least two directors (one resident in Singapore) and a resident CEO | MAS AML/KYC; MAS assesses risk-management and compliance systems | Flexibility, digitization of processes |
| UAE (ADGM, Abu Dhabi) | Category 4 firm (e.g. arranging or advising); private financing platform | Base capital USD 50 000; USD 150 000 for a private financing platform (FSRA rules effective 19 August 2025) | Authorized and supervised by the FSRA | FATF, local standards | Base capital is an absolute minimum; firms holding client assets or operating an MTF or OTF also need an expenditure-based minimum |
| UAE (DIFC, Dubai) | Category 4 firm; crowdfunding platform or money transmission | Base capital USD 30 000; USD 140 000 for a crowdfunding platform or money transmission (DFSA rules in force since 1 July 2025) | Authorized and supervised by the DFSA | FATF, local standards | Base capital is one element of the prudential rules; custody and fund-management categories have higher amounts |
| Africa (Mauritius) | Investment Dealer | Minimum stated unimpaired capital set by FSC rules for each dealer category | Licensed by the Financial Services Commission (FSC) | FATF, local regulations | License categories differ by permitted activities |
| Africa (South Africa) | Manager of a collective investment scheme | No single figure in the Act; the regulator determines the capital required | Regulated under the Collective Investment Schemes Control Act 2002 | FATF, local regulations | Capital kept in liquid form on an ongoing basis |
MiCA legislation and local regulations
In the EU, crypto-asset platforms are governed by the MiCA regulation (Markets in Crypto-Assets), whose licensing regime has applied since 30 December 2024. Crowdfunding platforms are licensed under the EU Crowdfunding Regulation, and brokerage platforms under MiFID II. In Asia and Africa local regulations prevail, while global FATF standards are gradually unifying requirements.
Licensing of investment platforms in the EU under MiCA 2025
For crypto-asset platforms, MiCA requires prudential safeguards of at least €50 000, €125 000 or €150 000, depending on the services, or a quarter of the previous year's fixed overheads if higher. Managers must be of good repute with the necessary knowledge, skills and experience, and the firm needs policies and procedures effective enough to ensure compliance.
AML procedures and KYC become an integral part of the operating model: automation of investor verification, regular internal audits, integration with European and national registries. Regulators also expect transparency, internal control and reporting.
Licensing of investment platforms in Asia and Africa
In Asia the key jurisdictions (Singapore, Hong Kong, UAE) offer flexible licensing formats, but require strict compliance with AML/KYC procedures. For example, in Singapore most company registration applications are approved by ACRA soon after payment; complex cases can take up to 15 working days, or 14 to 60 days where referral authorities must approve. At least one director must be locally resident. A platform conducting regulated activities under the Securities and Futures Act, such as dealing in capital markets products, needs an MAS license unless an exemption applies. For broker-dealers and crowdfunding operators, base capital starts at S$50 000, and MAS requires at least two directors (one resident in Singapore) and a resident CEO.
In Africa (Mauritius, South Africa) requirements differ by regulator and license type, and compliance and offshore-structure risks need particular attention. In COREDO's practice there have been cases when attempts to save on capitalization or to ignore local requirements led to account freezes and registration refusals.
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, from €25 000 (crowdfunding) or €50 000 (crypto-asset services) up to €750 000 (for example, investment firms dealing on own account). In Singapore, base capital starts at S$50 000 depending on the activity; in Mauritius and South Africa, the regulator's rules set the amount for each license type.
- 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
The solution developed by COREDO for Pre-IPO platforms has shown: choosing an investment intermediary license with enhanced internal control requirements not only reduces legal risks but also increases the trust of institutional investors. At the same time, for platforms integrating smart contracts the legal clarity of the software code and compliance with MiCA requirements become especially important.
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: 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 — online with the regulator (in Singapore, with MAS).
- 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, and at least one locally resident director is required. In Africa, special attention is paid to disclosing ownership structures and compliance with FATF requirements.
Regulators also expect platform operators to maintain reporting and internal audit, and to automate AML/KYC procedures.
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
AML services and KYC procedures are an integral part of an investment platform's operating model. International standards (FATF, MiCA, MAS) require:
- Investor verification procedures, often automated through eKYC and integration with government databases
- Regular internal audits and updates to AML/KYC policies
- A compliance function and staff training
- Implementation of transaction monitoring systems and corporate risk management
COREDO's practice shows: automating KYC and integrating with registries not only reduces operational costs but also increases trust from investors and regulators.
Legal liability for violations
Failure to comply with AML/KYC standards leads to fines, account freezes, license revocation and public statements by the regulator naming the firm. In 2025 the emphasis is shifting to proactive compliance: regular internal checks, IT infrastructure audits, management of internal conflicts of interest and transparency in reporting.
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
Tightening global scrutiny of offshore structures requires transparency of corporate structures, disclosure of beneficial owners, and integration with government and industry registries. Reporting transparency is a key factor in investor trust and the platform's long-term resilience.
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
What licensing formats for investment platforms exist in the EU, Asia and Africa?
In the EU: investment intermediary licenses, platform operator licenses, crypto licenses. In Asia: MAS licenses, hybrid fintech formats. In Africa: investment dealer, collective investment schemes.
How to choose the optimal licensing format?
Assess the business model, geography, capital requirements, IT infrastructure and long-term goals. COREDO's practice confirms that strategic analysis at the outset reduces the risk of license rejection and simplifies scaling.
What mistakes are most often made when registering platforms in Asia?
- Underestimating local director requirements, a formal approach to AML/KYC, attempts to use offshore structures without disclosing beneficiaries.
What requirements do EU regulators impose under MiCA?
- Minimum prudential safeguards, fit-and-proper management and shareholders, effective compliance and internal-control arrangements, management of money-laundering risks, and resilient ICT systems under DORA.
How to ensure technological resilience and data security?
- Regular audit of IT infrastructure, implementation of cybersecurity systems, backups, integration with government registries.
What is important when preparing a business plan for a license?
- 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.