February 2026 Regulatory & Licensing Digest for Crypto, Forex & Fintech Firms

Introduction

February 2026 brought important developments across offshore VASP licensing, corporate holding structures in Asia, unexpected compliance levies in St. Vincent, and new EU crypto reporting enforcement under DAC8.

For crypto exchanges, CFD brokers, fintech founders, and investment firms, jurisdiction selection and regulatory cost planning are becoming increasingly complex.

Below is a consolidated overview of the most relevant updates.

1. Corporate Structuring: Hong Kong & Singapore Holding Companies

Hong Kong Company Formation & Holding Setup

Hong Kong remains one of the most strategic jurisdictions for:

• Asian holding companies

• IP holding structures

• Regional headquarters

• Cross-border trade entities

With its territorial tax system and strong banking infrastructure, Hong Kong continues to attract international groups expanding into Asia.

👉 Link to: /news/hong-kong-company-formation-holding-setup

Singapore Holding Structures

Singapore remains a premium jurisdiction offering:

• Strong regulatory credibility

• Extensive double tax treaty network

• Access to institutional banking

• Clear compliance framework

It is particularly attractive for fintech and technology groups targeting Southeast Asia.

👉 Link to: /news/singapore-company-formation-holding-setup

2. Offshore VASP Licensing Updates (2026)

Cayman Islands Crypto License

The Cayman Islands remains suitable for:

• Institutional-grade token projects

• Structured crypto exchanges

• Investment-focused digital asset firms

Its regulatory framework is increasingly formalized, making cost planning and compliance structuring critical.

👉 Internal link:
/news/cayman-islands-crypto-license-offshore-vasp-setup

BVI VASP License

The British Virgin Islands continues to attract:

• Crypto startups

• Token issuers

• Offshore exchange operators

The framework offers flexibility but now requires stronger compliance preparation.

Internal link:
/news/bvi-vasp-license-offshore-crypto

Seychelles Crypto License

Seychelles remains cost-competitive and popular among mid-sized exchanges and brokerage groups.

However, regulatory scrutiny and substance requirements are increasing.

👉 Internal link:
/news/seychelles-crypto-license-offshore-vasp-setup

South Africa Crypto FSP Licensing

South Africa’s FSCA-supervised FSP framework remains one of the more structured crypto regimes in Africa.

Key points:

• Fit & Proper requirements

• Compliance officer appointment

• Ongoing reporting obligations

M&A opportunities for licensed CAT 1 & CAT 2 FSPs with crypto permissions are increasingly attractive for faster market entry.

👉 Internal link:
/news/south-african-fsp-crypto-asset-license-application-process-requirements-and-m-a-opportunities

3. New Compliance Levy in St. Vincent VASP Applications

A significant development in February 2026 concerns St. Vincent and the Grenadines (SVG).

The FSA has introduced a new levy of approximately USD 3,600 per company officer as part of a compliance outsourcing check during VASP licensing.

This fee:

• Was not previously disclosed

• Is not clearly prescribed in legislation

• Is being requested mid-application

• Raises total costs to approximately USD 10,000–15,000

Applicants should carefully assess full cost exposure before proceeding.

This resembles prior situations in the Caribbean where additional compliance fees were introduced outside primary legislative frameworks.

Strategic takeaway: low-cost jurisdictions may involve hidden compliance exposure.

4. Licensed Entities & M&A Opportunities

Strategic acquisition remains one of the fastest ways to enter regulated markets.

Available Opportunities:

• Licensed African payment system companies

• South African CAT 1 & CAT 2 FSP with crypto permissions

• Mauritius Investment Dealer (5-year operational history)

👉 Internal link :
/news/licensed-payment-system-companies-for-sale-in-africa

5. EU Regulatory Pressure: DAC8 & Investor Alerts

DAC8 Formal Notices

The European Commission has issued formal notices under DAC8, significantly expanding reporting obligations for crypto service providers.

Implications include:

• Mandatory reporting

• Cross-border tax transparency

• Increased enforcement risk

👉 Internal link:
/news/european-commission-issues-formal-notices-under-dac8-what-crypto-businesses-must-know

Investor Alerts & Reputational Risk

Regulators globally are expanding public investor warning lists.

Being listed may affect:

• Banking relationships

• PSP access

• Reputation

• Future licensing approvals

👉 Internal link:
/news/investor-alerts-meaning-causes-consequences-and-removal-strategies

Strategic Conclusion

In 2026, three clear trends are emerging:

1. Offshore VASP licensing costs are rising

2. Hidden compliance levies are increasing in some jurisdictions

3. EU regulatory enforcement is tightening

For fintech founders and crypto operators, jurisdiction selection must now consider:

• Total cost exposure

• Banking feasibility

• Reputational impact

• Long-term regulatory stability

Professional structuring and regulatory strategy are no longer optional — they are essential.

FAQ Section

Q1: Which offshore jurisdiction is best for a crypto license in 2026?

There is no single best jurisdiction. The optimal choice depends on target markets, banking needs, regulatory tolerance, and long-term strategy.

Q2: Are SVG VASP costs increasing in 2026?

Yes. Additional compliance levies have significantly increased the total cost of application beyond initial expectations.

Q3: Is acquiring a licensed company faster than applying?

In many cases, yes. M&A transactions can significantly reduce time-to-market, subject to regulatory approval.

Q4: What is DAC8 and why does it matter?

DAC8 is an EU directive expanding crypto reporting obligations and cross-border tax transparency requirements for digital asset service providers.

Zitadelle AG is ready to assist.

Contact us for a confidential consultation and structuring review.