Our team has been actively involved in supporting blockchain projects and crypto companies since 2017. Over the years of operation, we have helped more than 300 of our clients obtain a crypto license and successfully launch a blockchain startup. We have many years of practical experience and knowledge in the field of blockchain, financial law and AML/CFT, as well as developed algorithms for effective interaction with regulators and controlling bodies in various countries and jurisdictions.
In this article, we will briefly outline what a crypto license is and discuss in which cases obtaining a crypto license is necessary.
WHAT IS A CRYPTO LICENSE?
Legal definition of a cryptocurrency license
A crypto license or cryptocurrency authorization is an official permission that is issued by the crypto-asset service provider’s controlling or regulatory authorities in a certain jurisdiction and allows legally providing services for exchanging crypto for fiat money or other crypt assets, as well as offering custodial crypto wallet services.
DO I NEED TO GET A CRYPTO LICENSE?
In which cases should a crypto project obtain a crypto license?
If your business is somehow connected with cryptocurrencies and virtual assets, and you offer your clients services related to the exchange or storage of crypto assets and other virtual values, then with a high degree of probability, your business falls under licensing and you need to obtain a crypto license to carry out your activities.
In any case, before starting activities related to cryptocurrencies, virtual assets, tokens, etc., that are somehow related to innovative and alternative financial instruments, we strongly recommend conducting a thorough analysis of the company’s business model for the necessity of registration or licensing of activities.
FOR WHAT ACTIVITIES IS A CRYPTO LICENSE REQUIRED?
What crypto related services require a preliminary obtaining of a cryptocurrency license?
A crypto license may be required by various types of companies and service providers operating and offering their services in the field of cryptocurrencies or blockchain:
Crypto Exchanges. Companies that provide users with intermediary platforms for buying, selling, and exchanging cryptocurrencies and other types of virtual assets.
Crypto Exchangers. Services where users can exchange crypto for fiat money or one cryptocurrency for another with service provider.
DeFi Platforms. Services that use blockchain to provide decentralized financial services without the participation of intermediaries, such as P2P platforms for making investments, issuing loans and advances, as well as betting and making wagers.
Crypto Wallets: Companies that provide customers with custodial crypto wallet services for storing and managing crypto assets and virtual values.
ICO Projects. Startups that conduct an initial coin offering (ICO) to attract funds and investments.
Also, note that obtaining a crypto license may be relevant for other blockchain startups and cryptocurrency companies whose activities have signs of financial or investment services. Therefore, before the start of the active phase of the crypto company’s operations, we strongly recommend conducting an in-depth analysis of your startup’s business flows.
HOW DO I GET A CRYPTO LICENSE?
Basic steps of obtaining a cryptocurrency license
The procedure for obtaining a crypto license may vary depending on the jurisdiction or practices of regulatory bodies. However, the main stages of obtaining cryptocurrency authorization, which, in one form or another, are present almost everywhere, can be attributed to the following:
Choose a jurisdiction. At the very beginning, it is necessary to choose the most convenient and efficient jurisdiction where your crypto company will be registered and your crypto project will be created. First of all, it is necessary to pay attention to the applicable crypto regulation and accompanying legislative acts, as well as study the policy of the local regulator and assess how the chosen contry or region is compatible with the target audience of your crypto project.
Register a crypto company. Next, in the chosen jurisdiction, it is necessary to register a legal entity, carefully developing a corporate structure based on the anticipated business model of your crypto company.
Meet the regulator’s requirements. One of the most labor-intensive stages can be the meeting of the crypto company’s criteria by the regulator and legislative requirements, including the contribution of the share capital, development of AML/KYC policies and implementation of effective AML/CFT measures, maintaining continuity in the operation of IT systems, ensuring the security of customers’ personal data, etc.
Apply for a crypto license. After all preparations are completed, it is necessary to compile all the information and prepare a comprehensive application that reflects the company’s compliance with all criteria outlined in legislative acts and underscores the company’s readiness to enter the market in accordance with all the regulator’s requirements.
Develop internal infrastructure. In addition to meeting legislative requirements, it is extremely important to implement and adapt in the internal processes of the crypto company payment solutions and automated AML/CFT algorithms, as well as develop effective channels of interaction with the client base.
Start of the crypto company’s operation. After all the above steps are completed, your crypto company will be ready to enter the wide market of crypto focused services. However, you should constantly monitor the operability and reliability of your platform, as well as always be aware of regulatory policy and possible changes in legislation.
As stated above, the procedure for obtaining a crypto license can vary depending on the jurisdiction (country). In any case, the process of obtaining crypto authorization is quite a complex and responsible procedure, within which it is necessary to take into account many circumstances and nuances.
WHY SHOULD YOU CHOOSE US?
Trust the process of obtaining a crypto license to a team of professionals
We have been specializing in accompanying crypto projects for over 7 years and have extensive professional experience in the field of blockchain and regulation of the crypto industry. We will analyze the business model of your crypto startup and offer you the most effective blockchain jurisdiction for registration and successful start of your crypto company.
Our team is ready to provide you with comprehensive support in obtaining a crypto license for your blockchain startup, from preliminary consultations and company registration to negotiating with the regulator and implementing automated AML/CFT solutions into your business model.
CONTACT US
Get a primary consultation and a pricing proposal for your crypto project
If you are interested in the possibility of obtaining a crypto license for your blockchain startup – feel free to contact our lawyers and consultants!
Together we will find the most effective solution for obtaining a cryptocurrency license and the quickest launch of your crypto startup to the international market.
