Choosing Between Direct Delivery and Advise-and-Coordinate for Your Crypto Licence

By Mardo Soo, Founder & CEO, Consulting24 (X24Consulting OÜ) · Updated 2026-07-21

When you decide to obtain a crypto licence, one of the first strategic choices is whether to work with a firm that delivers the licence directly in your target jurisdiction or one that advises and coordinates with local partners. Consulting24 offers both models: direct delivery in Panama, Estonia, and Lithuania, and advise-and-coordinate services for all other jurisdictions. This page helps you evaluate which approach suits your project, timeline, and budget.

Direct delivery means we handle the entire application process internally, from company setup to regulatory submission, using our in-house team and established relationships. Advise-and-coordinate means we guide you through the requirements, connect you with vetted local lawyers and agents, and oversee the process, but the actual filings are executed by third parties. Both models have distinct advantages, and your choice depends on factors like jurisdiction complexity, your internal resources, and risk tolerance.

This comparison is essential for founders who want to avoid costly mistakes. A wrong choice can lead to delays, unexpected costs, or even rejection. We have seen projects where a founder chose a jurisdiction solely based on low headline fees, only to discover that banking was impossible or the licence scope was too narrow. By understanding the trade-offs, you can make an informed decision.

What Is Direct Delivery vs Advise-and-Coordinate?

Direct delivery is a full-service model where the consulting firm takes end-to-end responsibility for obtaining your crypto licence. In our case, we deliver directly in Estonia, Lithuania, and Panama. This means we incorporate your company, prepare all documentation, submit to the regulator, and manage communications until the licence is granted. You have a single point of contact and a fixed price. For example, a Panama licence costs a flat EUR 6,000 with no hidden fees, and we handle everything from company registration to regulatory approval.

Advise-and-coordinate is a hybrid model where we act as your strategic advisor. We assess your business model, recommend the best jurisdiction, and create a roadmap. Then we coordinate with local legal and compliance partners who handle the actual application. This model is ideal for jurisdictions where we do not have a direct delivery setup, such as Dubai, Malta, Switzerland, or the Cayman Islands. You benefit from our expertise without us being physically present. For instance, if you need a VARA licence in Dubai, we will connect you with a licensed local agent, review their work, and ensure the application meets regulatory standards.

Both models have their place. Direct delivery is faster and more predictable, while advise-and-coordinate offers access to a wider range of jurisdictions. The key is to match the model to your specific needs.

Who Needs This Comparison?

This comparison is for crypto founders who are evaluating service providers and want to understand the trade-offs between a turnkey solution and a guided approach. You might be:

• A startup with limited compliance staff, needing maximum hand-holding and a single point of contact.
• An established exchange seeking a specific jurisdiction that only offers local representation, such as Dubai or Malta.
• A founder comparing costs and timelines across multiple jurisdictions to find the best fit for their business model.
• Someone who already has a legal team but lacks regulatory know-how and needs expert oversight.

If you value speed and simplicity, direct delivery is often better. For example, a Panama licence can be obtained in 4-6 weeks with minimal effort on your part. If you need a niche jurisdiction or have complex corporate structures, advise-and-coordinate offers more flexibility. We have worked with founders who needed a Swiss licence for its banking relationships; they chose advise-and-coordinate because we have a trusted partner in Zurich.

Ultimately, this comparison helps you decide which model aligns with your priorities: cost, speed, jurisdiction access, or control over the process.

License Type & Regulator

For direct delivery jurisdictions, the licence types are well-defined. In Estonia, the Financial Intelligence Unit (FIU) issues a Virtual Currency Service Provider licence. In Lithuania, the Bank of Lithuania grants a CASP licence under MiCA. In Panama, the regulator is the Superintendencia de Bancos de Panamá (SBP) for the Crypto Asset Service Provider licence. Each regulator has specific requirements for AML policies, corporate governance, and financial soundness.

For advise-and-coordinate jurisdictions, each has its own regulator and licence type. For example, the Dubai Virtual Assets Regulatory Authority (VARA) issues a VASP licence, while the Malta Financial Services Authority (MFSA) grants a Class 3 CASP licence. Switzerland's FINMA issues a fintech licence or a banking licence depending on the activity. We help you navigate these differences and select the right licence for your activities. For instance, if you plan to offer custody services, we will guide you to jurisdictions that explicitly allow it under their licence scope.

Understanding the regulator's expectations is critical. In direct delivery, we know exactly what documents they require and how to present them. In advise-and-coordinate, we rely on local partners who have direct experience with the regulator.

Cost & Timeline

Costs and timelines vary significantly between direct delivery and advise-and-coordinate models. Below is a comparison based on our current offerings.

Note: Prices are indicative and subject to change. Exact pricing is confirmed in a consultation. Direct delivery typically has lower upfront costs because we control the process, while advise-and-coordinate includes local partner fees. For example, a Dubai licence may require a local agent fee of EUR 5,000-10,000 on top of our advisory fee. Timelines also vary: direct delivery is faster because there is no coordination overhead. In Panama, we have streamlined the process to 4-6 weeks, while a Dubai licence can take 4-6 months due to multiple approvals.

We recommend budgeting for at least 10% contingency in both cost and timeline for advise-and-coordinate projects.

Capital Requirement

Capital requirements depend on the jurisdiction and licence class. Under MiCA, which is fully in force in 2026, EU member states apply capital tiers: EUR 50,000 for basic services (e.g., transfer services), EUR 125,000 for custody, and EUR 150,000 for exchange. Lithuania follows this exactly. Estonia also aligns with MiCA but may have additional own funds requirements, typically EUR 50,000-125,000 depending on the service.

Panama has no statutory minimum capital for crypto licences, but the regulator expects sufficient financial resources to cover operational costs. Typically, we recommend at least EUR 10,000 in paid-up capital. This makes Panama attractive for startups with limited funds. For advise-and-coordinate jurisdictions, requirements vary widely: Dubai VARA requires AED 100,000-500,000 (approx. EUR 25,000-125,000) depending on the category, while Malta requires EUR 125,000 for a Class 3 licence. Switzerland has no fixed minimum but expects adequate capitalisation, often EUR 100,000+.

Capital must be held in a bank account and may be locked for a period. We help you structure this efficiently.

Tax Treatment

Tax treatment is a critical factor. Panama offers territorial taxation: income sourced outside Panama is tax-free, and there is no VAT on crypto services. Corporate tax is 25% only on Panama-source income, but most crypto businesses can structure to minimise local tax. For example, if your customers are outside Panama, your profits are tax-free. This is a major advantage over EU jurisdictions.

Estonia has a unique corporate income tax system: profits are taxed only when distributed (20% on dividends). This allows you to reinvest profits tax-free. Lithuania has a standard 15% corporate tax, with potential exemptions for small enterprises (0% for the first year if revenue under EUR 300,000). For advise-and-coordinate jurisdictions, tax regimes differ: Switzerland has cantonal tax rates from 12-20%, Malta has 5% effective tax after imputation, and Dubai has 0% corporate tax for qualifying activities. However, you must consider substance requirements and economic presence.

We recommend consulting a tax advisor for your specific situation, as tax laws are complex and subject to change.

Allowed Activities

The scope of allowed activities depends on the licence. In Panama, the Crypto Asset Service Provider licence covers exchange between crypto and fiat, crypto-to-crypto exchange, custody, and transfer services. It does not cover derivatives or investment advice unless separately licensed. For example, if you plan to offer staking or lending, you need to check if these fall under custody or require additional authorisation.

In Lithuania and Estonia, MiCA-compliant licences cover a broad range: operating a trading platform, exchanging crypto for fiat, custody, and transfer services. Under MiCA, you can also provide advice and portfolio management with additional authorisation. For advise-and-coordinate jurisdictions, always verify the exact scope with local regulators. For instance, a Dubai VASP licence covers exchange, custody, and transfer, but not derivatives unless you obtain a separate category.

We help you map your business activities to the licence scope to ensure full compliance.

Step-by-Step Process: Direct Delivery vs Advise-and-Coordinate

Direct Delivery (e.g., Panama):

1. Initial consultation and business model assessment. We identify the right licence type and required documents.
2. Company incorporation in Panama (we handle all paperwork, including registration with the Public Registry and obtaining a tax ID).
3. Preparation of compliance documents: AML/KYC policies, business plan, risk assessment, and internal procedures.
4. Submission to the Superintendencia de Bancos de Panamá. We file the application and pay the fee.
5. Regulatory review and potential clarifications (we manage communication and respond to queries within 24 hours).
6. Licence issuance and post-licence compliance support, including ongoing AML reporting.

Advise-and-Coordinate (e.g., Dubai):

1. Strategic advisory: jurisdiction selection, licence type, timeline, and cost estimate.
2. Introduction to local legal partner in Dubai. We vet them for quality and reliability.
3. We review and refine the application prepared by the local partner, ensuring it meets VARA standards.
4. We oversee the submission to VARA and provide ongoing guidance on regulatory expectations.
5. Local partner handles any regulatory interviews or site visits. We prepare you for these.
6. Licence granted; we assist with ongoing compliance coordination, such as annual audits and AML reporting.

In both models, we provide a dedicated project manager who updates you weekly.

Banking & Payments

Banking is often the hardest part of crypto licensing. In Panama, we have established relationships with local banks that accept crypto-licensed companies, such as Banco General and Towerbank. The process is smoother because we handle introductions directly. Typically, you can open a business account within 2-3 weeks after incorporation. We also help with payment processor integration for fiat on-ramps.

In Estonia and Lithuania, banking options are more limited but still accessible through our network. We work with banks like LHV and Swedbank, which have dedicated crypto teams. For advise-and-coordinate jurisdictions, banking is handled by the local partner. For example, in Dubai, we coordinate with banks like Mashreq and RAKBANK that understand VARA licences. In Switzerland, cantonal banks like Zürcher Kantonalbank are often crypto-friendly. We cannot guarantee account opening, but we significantly de-risk the process by preparing a strong application and using our relationships.

We recommend starting the banking process early, as it can take 4-8 weeks.

Benefits of Direct Delivery

Direct delivery offers several advantages:

• Single point of contact and accountability. You deal only with us, not multiple parties.
• Faster turnaround because we control the entire process. Panama takes 4-6 weeks, Estonia 2-3 months.
• Fixed pricing with no hidden local partner fees. Panama is EUR 6,000 flat.
• Deeper knowledge of the regulator's expectations. We have submitted hundreds of applications.
• Easier communication: no language or time zone barriers. Our team speaks English, Russian, and Spanish.

This model is best for founders who want a hands-off experience and a predictable outcome. It is particularly strong for Panama, where our flat fee of EUR 6,000 makes it the most cost-effective option globally. For example, a startup with a limited budget can get a fully licensed entity in Panama for less than the cost of a single employee.

Compliance & Trust

Compliance is non-negotiable. In direct delivery jurisdictions, we maintain a compliance team that stays up to date with regulatory changes. We provide ongoing support for AML reporting, annual returns, and regulatory audits. In Panama, we offer a compliance maintenance package for EUR 2,000 per year, which includes filing annual reports, updating AML policies, and acting as your local representative.

For advise-and-coordinate, we vet local partners to ensure they meet our standards. However, the ultimate responsibility for compliance rests with the local licensed entity. We recommend engaging a local compliance officer. This is general guidance, not legal advice. Always consult with a qualified lawyer for your specific situation. We also provide a compliance checklist and quarterly reviews to help you stay on track.

Trust is built through transparency. We share all regulator communications with you and provide a clear timeline of deliverables.

Common Mistakes

Founders often make these mistakes when choosing between models:

• Choosing a jurisdiction solely based on cost without considering banking or tax. For example, a cheap licence in Estonia may have high ongoing compliance costs.
• Assuming advise-and-coordinate is cheaper - local partner fees can add up to EUR 5,000-15,000.
• Underestimating the time needed for advise-and-coordinate due to coordination overhead. A Dubai licence can take 6 months.
• Not checking whether the consulting firm has direct delivery in the target jurisdiction. Some firms claim to deliver everywhere but outsource everything.
• Ignoring post-licence compliance costs. In Lithuania, annual AML audits can cost EUR 3,000-5,000.

To avoid these, always request a detailed breakdown of costs and timelines before committing. We provide a free consultation to discuss your specific needs.

Alternatives & Comparison

When comparing Panama to other jurisdictions, the differences are stark. Panama offers a flat fee of EUR 6,000, no minimum capital, territorial tax, and a 4-6 week timeline. In contrast, Lithuania under MiCA requires EUR 125,000 capital and takes 3-4 months at a cost of EUR 12,500+. Dubai VARA licences start at EUR 25,000 and take 4-6 months. Switzerland can take 6 months and cost EUR 20,000+ with a capital requirement of EUR 100,000.

If you need a European licence for passporting rights, Lithuania or Estonia are better despite higher costs. If you want a low-cost, fast option with no capital requirement, Panama is unmatched. For niche markets like the Middle East, advise-and-coordinate for Dubai is the only route. We help you compare these options side by side in a consultation.

For a detailed comparison of Panama vs Lithuania, see our Panama vs Lithuania page.

How Consulting24 Can Help

Consulting24 delivers directly in Panama, Estonia, and Lithuania. For all other jurisdictions, we advise and coordinate with trusted local partners. We have obtained over 500 crypto licences globally. Our team can help you decide which model fits your project.

Start by booking a consultation. We will assess your business model, recommend the best jurisdiction, and provide a detailed cost and timeline estimate. Whether you choose direct delivery or advise-and-coordinate, we are committed to your success. Contact us today to get started.

Official sources

• Superintendencia de Bancos de Panamá (SBP)

Related jurisdictions

Mardo Soo · CEO, Consulting24Personally advises on jurisdiction selection. 500+ crypto licenses across Estonia, Lithuania & Panama. LinkedIn →

General guidance, not legal advice. Rules and fees evolve, and we confirm current requirements for your case.