01Client
A large producer of agricultural commodities with its own production facilities, operations across multiple countries and trading companies in the UAE.
02Objective
The client wanted to create an additional source of financing for its production operations without changing how the core business operates.
At the same time, it wanted to open a new distribution channel by offering its products in digital form, with the option for buyers to pay in cryptocurrency.
03Challenge
Issuing tokens and enabling their circulation requires the appropriate regulatory permissions. Licensing requirements and timelines vary significantly between jurisdictions. In some markets, preparing for the first issuance can take several months.
04Solution
A phased roadmap was developed for the project. Several jurisdictions were compared by regulatory requirements, time to market and entry threshold, and the project was set to start in a jurisdiction where the issuing company could be incorporated and licensed within approximately one month. This allows the model to be validated before the project expands into markets with longer preparation periods.
The client is developing the technology platform in parallel.
05Process
- Compared jurisdictions and developed a regulatory roadmap around the client’s objectives.
- Incorporated the token-issuing company and obtained the required licence in the initial jurisdiction within approximately one month.
- Prepared the project’s AML policies and business plan.
- Platform development on the client’s side, estimated at 3–4 months.
- Next stage: preparing the policy framework required for additional jurisdictions, including IT, AML/CFT, KYC and marketing policies.
06Current status
The issuing company has been incorporated and licensed in the initial jurisdiction. The project is moving towards its first issuance while the client completes the platform.
Key takeaway
A tokenisation project does not need to begin in a jurisdiction where preparing for the first issuance takes several months. A more efficient approach can be to launch where the required licence can be obtained within approximately one month, validate the model and then add further markets as the project grows.