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How to get a crypto license in 2019

Due to the fact that the number of entrepreneurs developing business in the field of cryptocurrency, has begun to grow, the issue of obtaining cryptographic licenses has become urgent. One of the most profitable directions is the opening of a cryptocurrency exchange in order to exchange cryptocurrencies for another similar currency, or for traditional means. In order for this business to be legal, it is imperative to obtain a license.

What is a cryptocurrency license

The license for cryptocurrencies represents a permit to conduct operations with this financial instrument, which is obtained from authorized entities.

Obtaining such permission gives the right to the following actions:
• Exchange operations;
• Implementation of payment transactions;
• Provision of services with payment by digital means;
• Placement of tokens;
• Currency issuance.

Before you start issuing a license, you should familiarize yourself with the form of the package of documents, clarify what is included in the list of papers. In some jurisdictions, the final list may be different.

Types of licenses and the process of obtaining

Cryptocurrency exchange can be divided into two types - classical, with which you can change the cryptocurrency among themselves, as well as fiduciary, allowing to exchange traditional means for cryptocurrency and vice versa.

There are two main types of licenses:
• Specialized - imposed by public authorities. Licenses are relevant in countries such as Estonia, Japan;
• Traditional - allow you to regulate the implementation of operations with finances; indirectly, operations related to cryptocurrency fall under their action.

Now cryptocurrency business is common in different jurisdictions, the most popular countries for obtaining a license to exchange cryptocurrency are Japan, Estonia, Hong Kong, Singapore, Malta and some others.

How the licensing process is organized:
• Opening accounts, without which the business can not grow;
• Hiring employees, in most cases it will be required to hire an AML-officer, Compliance-officer;
• Establishment of equipment for the normal functioning of the exchange;
• Collection of all necessary documents.

A cryptocurrency exchange in its activity often has to carry out risk analysis, staff training. There should be acts aimed at preventing the laundering of funds. It is necessary to keep records, including suspicious transactions.

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