The Vanuatu Financial Services Commission (VFSC), the regulatory authority which oversees licensed forex brokerages, has recently amended their licensing requirements. As of this writing, licensed forex & CFD brokers must upgrade license permissions. In today’s post we’ll outline the categories that licensed securities dealers in Vanuatu are classified under.

How Are Financial Services Firms / Brokers Classified in Vanuatu?

In Vanuatu, financial service providers like FX brokers are officially classified as dealers in securities. Note that this is not limited to forex but also includes options, stocks, cryptocurrency and other financial products. Currently, there are a total of 4 license categories: Class A, B, C, and D.

Vanuatu Securities Dealer License – Class A & Class B Overview

We’ll start our outline with what is officially known as a Class A Principal License. This specific license class authorizes the broker to offer the following securities: debenture stocks, loan stock, bonds, certificate of deposit and proceeds of Foreign Exchange. As we’ll shortly outline, this was not the common license class for most forex & CFD brokers to be licensed under and until recently it was possible for licensed forex & CFD brokers to operate without these permissions.

The next category is Class B which covers the following: shares in share capital of a corporation, proceed of precious metals, proceed of commodities. Additionally, depository receipts and warranty’s are covered under this category.

Class C – The Most Common License

Prior to the recent changes announced by the VFSC, the majority of forex brokers were able to operate with a Class C license. A Class C license in Vanuatu covers futures contracts and their derivatives plus options. As mentioned above, this license class was sufficient for FX brokers to operate until the past month. Due to the change in policy, however, both new applicants and licensed brokers must upgrade permissions to include Class A and Class B.

Class D – Cryptocurrency / Virtual Currency Licensing Permissions

Class D is a relatively new license class that is reserved exclusively for cryptocurrency / virtual currency exchanges. It’s worth highlighting that capital requirements for licensed crypto exchanges in Vanuatu sits at $500,000. Finally, it is possible for licensed securities dealers like forex brokers to upgrade to Class D

Atomiq Consulting – Vanuatu Forex License Expertise & Guidance

Atomiq Consulting specializes in offshore forex license consultation. Our team has helped countless clients obtain their forex license in Vanuatu. Additionally, we also have experience with cryptocurrency licensing that was recently introduced by the Vanuatu VFSC.

To learn more about obtaining a forex broker license in Vanuatu, or discuss license classes in greater detail, don’t hesitate to contact us today.