Company: EGG
Filing Date: 2025-04-22
Form Type: F-1/A
Source: 0001641172-25-005604
Chunk: 96

Company: ENIGMATIG LTD
Filing Date: 2025-04-22
Form: F-1/A
Chunk 96
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The key drivers and trends in the financial licensing solutions market include the following:

Increasing demand for global financial transactions

Globalization has become an increasingly important trend in the business world. As a result, companies are seeking to expand their operations abroad to tap into new markets, reach new customers, and diversify their businesses. However, expanding a business into a new country can also present a range of regulatory and compliance challenges. One of the most significant challenges is obtaining the necessary financial licenses. In many countries, there are strict regulations in place that govern the financial services industry, and companies must comply with these regulations in order to operate legally. For companies that are looking to expand their business abroad, obtaining financial licenses can be a complex and time-consuming process, and companies may find that they are not familiar with the regulations and procedures in a particular country. Thus, increasing globalization has created a growing demand for cross-border financial licensing services which help companies navigate the complexities of obtaining financial licenses in different countries. This may include documentation preparation, submission, and ongoing compliance management. With the help of these services, companies can more easily expand their businesses abroad and take advantage of the opportunities presented by globalization.

Increasingly complex requirements on application of financial licenses

Since the occurrence of the 2008 financial crisis, regulatory bodies worldwide have become cautious when it comes to issuing financial licenses. As a result of the increasing complexity of procedures and rapidly changing legal provisions, corporations seeking to obtain and maintain financial service licenses require assistance from professionals. This trend has led to the growth of the financial licensing solutions industry. For instance, in Belize, the Financial Services Commission passed the Belize Companies Act 2022 in August 2022. This act introduced changes to statutory limits on the number of shareholders, modifications to minority shareholder rights, and other related amendments. Private trusts, segregated portfolios, and foreign companies must make necessary adjustments to comply with the new act. This requires engaging professionals to handle processes like re-registration and updating financial licenses. Similarly, in Cyprus, CySEC introduced a new rule for license application promoters in June 2021. According to this rule, application promoters must provide due diligence and Know-Your-Client procedures for clients wishing to apply for a license with CySEC. This new requirement aims to enhance the overall quality of license applications and necessitates increased professional involvement, therewith prolonging the licensing duration to nearly half a year. The specific requirements for obtaining financial licenses and subsequent changes differ from country to country. However, they generally involve a comprehensive application process that entails submitting detailed information about the applicant