How to start a crypto business in the U.S.: tips
To launch a crypto business in the U.S., it is necessary to thoroughly prepare - to consult with lawyers, register a company, get a license. Also, it is necessary to buy / create a crypto exchange, carefully checking its functionality, develop a competent marketing strategy.
Getting a license
After registering a company, it is necessary to get a license for cryptocurrency activities. Two options are available:
- Money transfer license - for a company that is going to engage in the exchange of cryptocurrency for real money;
- MSB license if the firm plans to exchange one digital currency for another.
The specifics of licensing cryptocurrency business in the U.S. - in the federal structure. In addition to the requirements of the central regulator, each state has its own conditions. Therefore, if a company wants to operate in several states at once, it may be necessary to obtain an additional license. For example, a company is required to take BitLicense to operate in New York State.
It is important to know that many states do not have a clear stance on digital currency, and rules can change. To arrange a crypto business in the U.S., not to make a mistake, we recommend contacting our experts.
Requirements for obtaining a cryptolicense in the U.S.
A company that is interested in a cryptocurrency license in the U.S. must develop a strategy to prevent money laundering and terrorist financing.
It must also comply with other requirements:
- Register with the U.S. Treasury Department (registration must be renewed every 2 years);
- Provide a list of its agents;
- Track and report all suspicious transfers;
- Report transactions over $10,000;
- Maintain information on money transfers;
- Keep records of cryptocurrency exchanges.
What else needs to be done to launch your project
In addition to registering and licensing the company, there are other steps you will need to take in order to start your project.
To start a cryptocurrency exchange you need at least $135k, so before you start it is important to properly calculate the costs, to find funding. This includes not only the company registration and license, but also the development of technology, hosting fees, advertising and staff. Don't launch a project if you don't have enough money and you may be left without critical funds.
Buying or developing a cryptocurrency exchange
The speed of operation directly depends on whether you buy a cryptocurrency exchange (from $20k to $150k) or turn to developers who create turnkey crypto exchanges.
If you buy, you can start a business almost immediately. This exchange will work steadily, no special adjustment is required, which requires a thorough check of its functionality before purchase.
In the second case, the development may take a long time (8-9 months), because before the launch of the exchanger will have to repeatedly test. So you can create your own, unique product, but the price will be more expensive ($300k - $500k). It is possible that later certain things will have to be finalized, so do not lose touch with the developers, choose the implementers carefully.
Connect to the payment system
Not all payment systems are the same, and the question of who to contract should be carefully considered. For you to be able to compete with other cryptocurrency exchanges, you have to ensure that you can make quick transfers. Be sure to study the terms and conditions offered by the payment system, paying special attention to hidden fees. Make sure that the payment processor is PCI compliant to protect the system from cyberattacks.
Implement security best practices
No one will trust you with money if you can't protect it. To avoid data theft, keep users' money in standalone cold wallets, use two-factor authentication, encrypted databases, etc.
Advertising - the engine of commerce
To promote your crypto exchange, don't forget about advertising, for which we advise to connect to cryptocurrency news agencies, for example - CoinDesk. Additionally, you can advertise your services in social networks.
How to launch a crypto business in the US
Interested in starting a cryptocurrency business in the US - contact IT-OFFSHORE experts.