Where to get a license for a cryptocurrency exchange
There are some peculiarities of getting a license for a cryptocurrency exchange. The number of businesspeople who specialize in working with cryptocurrency is constantly growing. The most profitable direction is considered to be the opening of exchanges related to cryptocurrencies. Licensing for this type of business is mandatory.
The need for licensing
Obtaining a license for a cryptocurrency exchange is now mandatory in most countries. Legalization of the business allows you to protect the finances and user information at the level of legislation. Exchanges that have obtained permission and are operating in the legal field, oblige users to be verified according to the laws.
Exchanges that have obtained the necessary authorization are the most competitive and clients treat them with the greatest trust. Exchanges that do not have a license get restrictions on the number of transactions, there is no possibility to exchange cryptocurrency for fiat currency. It becomes more difficult to open an account for such businesses.
Where to get a license - TOP 5 countries
One of the states where it is profitable to get a cryptocurrency license is Malta. Companies that plan to get a license must meet the conditions of the regulator. It is necessary to have a company in the country, it is important to provide operational activities, to test all financial instruments.
To get a cryptocurrency license in Estonia, you must first open a company in this country, apply to the Financial Supervision Authority. It will be necessary to prepare a package of documents. It is necessary to assess risks, prepare data on incorporation, KYC. The application is analyzed on average about a month.
It is possible to set up a stock exchange in the UK if all legal requirements are met. It is required to have a legal entity with an office in the country of incorporation, it is necessary to open an account with a financial institution. A business development plan with risk assessment and corporate information must be submitted. Consideration will take about 3 months.
It is possible to open an exchange in New Zealand. This will require opening a business and office, fees, charges. In the country, cryptocurrency is equated to securities, in this regard, there is no separate license. To work with virtual money, you will need a license to work with securities. If violations are detected, the license may be revoked.
Obtaining a license in the United States will require an AML officer, you must register with the Department of the Treasury, compile lists of agents, keep information about the transactions performed, and keep records.
A license is required if a crypto-exchange needs to be established. Currently, some offshore companies have the ability to operate without it, but such activity has risks of losses.