Best Countries to Set Up a Fintech Business In
Financial technology, also known as Fintech, represents one of the best combinations between financial and information technology industries. It simply means putting IT to work for those offering some of the most important services.
In the last several years, the financial sector has undergone spectacular changes, one of the most important related to the creation of blockchain technology and the appearance of the first digital currency: Bitcoin. This was also the first step of the Fintech industry. However, the sector is still pretty unregulated, therefore, those thinking about starting a Fintech business should pay attention when choosing the country for such venture.
How to choose a country
Fintech is used for common activities like online and credit card payments and Robo-advisory services in banks. However, there are also the activities related to the creation, exchange, and sale of cryptocurrencies. So, those planning on setting up a Fintech business should choose the country based on the activities they will undertake.
To understand better, one should first consider the banking system and legislation related to the creation of financial companies. From this point of view, Asian countries are the most developed and stable in the world.
Hong Kong and Singapore, for example, are two cities with similar visions towards Fintech activities in the field of blockchain technology and cryptocurrencies. Young enterprises can choose to open cryptocurrency businesses in Hong Kong if they are keen on this sector, as the former British territory is one of the most important financial centers in Southeast Asia, therefore, payments with digital coins are accepted.
On the other hand, Singapore is catching up and seeks to be one of the first countries in the same region to regulate transactions with virtual coins. Setting up a fintech business in Singapore in the near future could be less complicated than in other corners of the world.
Special requirements for Fintech businesses
There are two sides to consider when setting up a Fintech business: whether the company will be a financial or an IT one. In the first case, all countries in the world have special requirements, such as laws, licensing and approval regulations and minimum share capital requirements.
In case the company is an IT business involved in the creation of a platform or digital currency, these financial laws will rarely apply, therefore, choosing the exact object of activity of the company is very important.
One of the most prolific economies in the world, which encourages the development of financial technology, is Germany, however, here, IT companies are the ones sustaining the growth of this industry. Enterprises interested in opening a Fintech business in Germany can very well choose to structure it as a high-tech company.
Choosing a country to open a Fintech business depends on many factors, however, the law and services offered are among the most important ones, because financial technology is still an emerging economic sector in many parts of the world. The start-up costs shouldn’t be ignored either, but these are usually the first costs people consider when starting a business.
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