Basics of Crypto Exchanges Licensing

February 16, 2022
cryptocurrency concept with bitcoin

Despite the fact, cryptocurrencies have shown a decline in recent times, the number of people interested in crypto assets activities is steadily increasing. A crypto exchange, depending on its organizational structure, allows you to exchange different cryptocurrencies, or exchange crypto assets for standard payment means. Talking about basics of crypto exchanges licensing, should note tht the creation of such an exchange is one of the most popular and profitable areas of commercial activity. In order to ensure the legal functioning of this structure and obtain status of officially approved cryptoassets project, it is imperative to obtain an appropriate license.

The trend towards an increase in the number of crypto exchanges is also increasing. Below we will consider the basics of licensing operational way of such structures, and the main requirements put forward for successful realization of this procedure.

Types of Permits for Cryptocurrency Exchanges

Conventionally, cryptoexchangers can be classified as follows.

  • Classical type. Through such exchanges, users have opportunity to exchange cryptoassets between its different forms.
  • Fiat-cryptocurrency exchanges.

Accordingly, licenses are also divided into two types. In addition to these two types, two more groups can be distinguished separately:

  • Traditional permission, which gives the right to implement financial transactions and carry out certain transactions with crypto assets.
  • Specialized – it is issued by an authorized regulator. This permit controls previous type.

Optimal jurisdictions for establishing a crypto exchange

Among most popular jurisdictions, often chosen for the registration of exchange of crypto assets, following can be distinguished:

  • USA;
  • Singapore;
  • Hong Kong;
  • Estonia;
  • Japan is also one of the most “expensive” jurisdictions;
  • Great Britain.

Malta can be added to the same list, which is quite actively working on the creation of legal acts to regulate cryptocurrencies. In particular, a number of leading cryptoexchanges, such as Binance, have already thought about moving their structure within this jurisdiction.

If we describe the general process of forming the activity of a cryptocurrency exchange, it will look like:

  • company registration. It is worth mentioning that, often, organizations that implement common functions are ranked among top exchanges. This move is necessary in order to optimize taxation and diversify risks;
  • opening an account(s) to meet financial needs of the business;
  • hiring employees, in particular, the involvement of an AML specialist who assumes responsibility for compliance with anti-money trafficking policies, and a compliance officer – a specialist who will ensure that the company properly complies with all other requirements put forward at the legislative level ;
  • preparation of software and technical tools;
  • collection of documents required to activate operational processes.

Basics of Crypto Exchanges Licensing: General AML Policy

The first thing worth noting is the mandatory familiarization of an entrepreneur who wants to open a cryptoexchange with AML legal base in force in territory of chosen jurisdiction. Cryptocurrency exchange structure, performing its professional activities, should consider following:

  • regular training and advanced training of personnel;
  • implementation of a comprehensive risk analysis – due diligence procedure;
  • proper bookkeeping;
  • development and adoption of internal certificates in order to minimize the risks of illegal circulation of funds;
  • control over the fact that the authorized bodies were informed in a timely manner regarding the conduct of suspicious transactions.

The best solution would be to purchase a ready-made cryptocurrency license with comprehensive specialized aid.

Demanded Jurisdictions


According to statement of National Bank of Croatia, cryptoassets are not classified as financial ones. However, very cryptocurrency circulation in country is not prohibited at legislative level. Compliance with KYC and AML requirements is mandatory.


Estonia a few years ago aimed to digitalize the economy and establish a favorable environment for formation and future developing of Fintech startups. The main innovation of regulatory frame was evolving of a special license that allows you to exchange cryptocurrency among themselves, and for fiat. What is needed?

  • Having local office, hiring an AML staff member and director.
  • The starting capital of the company must be at least 12 thousand euros.
  • Availability of a bank account and the ability to provide a business plan, a non-conviction document and the Articles of Association.

Hong Kong

Today, the authorities of Hong Kong are quite neutral about cryptoexchanges. The regulator puts forward very specific requirements for such structures and related licenses.

  • To pass licensing it is mandatory to have all the constituent documents of company, and documents that would confirm the identity of each person.
  • In addition, it is required to hire a resident AML employee, rent an office and implement a well-formed AML policy, as well as create a business plan.


Japan has significantly changed the legal framework governing the field of payment services in general. In particular, the procedure for exchanging cryptoactives for conventional funds was regulated – need to get a license was fixed at the official level.

  • The director must be resident in the jurisdiction.
  • Mandatory presence of a business plan, documents confirming the identity of beneficiaries and directors, and well-written AML policy.


With permit that allows cryptocurrencies exchange in United States, an entrepreneur may legally provide such type of service. Licensing of a crypto exchange is a rather long and difficult process.

  • Availability of an AML resident employee.
  • Ensuring full compliance with AML/KYC.
  • Ability to provide an extract regarding the registration of the company, as well as personal data of the contact person.

Great Britain

Today, the United Kingdom is a powerful space for functioning of cryptoexchanges; nevertheless, this is possible if the company has the appropriate license. The UK has created not only a reliable financial environment, but also a safe environment for making crypto operations.

  • It is obligatory to have commercial plan and an appropriate package of documents for creating of a company, in particular, confirmation of the source of funds received by the company.
  • We need a resident director with excellent professional reputation, experience and qualifications.

Crypto industry is popular and promising commercial area, in particular, activities related to crypto exchangers. If you want implementing your own idea and start developing in this direction, then we recommend that you pay attention to ready-made businesses for sale with licenses. Consider the following options:

On the ELI Deal platform, you can find even more interesting and profitable offers for the sale of companies and licenses. Contact our experts for advice and support.

Related insights

Offshore bank license in Cayman islands

Commonly-chosen space for banking, largely dominating the rest due to high-quality private-banking. Offshore bank license in Cayman Islands gives entrepreneurs possibilities to provide banking-services legally, thereby strengthening assurance of partners and capital-holders. Offshore banking licenses Cayman Islands Presently, Caymans are a promising and desirable hub for Chinese establishments. Several new banks already applied for permits…

Read more 21.03.2023

Offshore bank license in Bahamas

Bahamas banking-niche possesses a status of a rapidly growing segment of economy. Banking facilities offering commercials only for people and structures without residence are considered non-residential companies for foreign exchange monitoring goals. Thus, it isn’t permitted for them to propose services for locals and businesses not previously getting Central Bank’s approbation. It makes it easy…

Read more 21.03.2023

Offshore bank license in Gambia

Having a permit such as offshore bank license in Gambia gives possibilities to offer accounts opening and management services, and to carry out all related operations related to them. Offshore-accounts in the Gambia give certain advantages. The list of such privileges includes: strong assets protection-mechanisms; higher interest-rate; low-rates or no taxation. How to get offshore…

Read more 16.03.2023

Offshore bank license in Labuan

Possessing such a permit as offshore bank license in Labuan requires passing through a complicated process. All local commercial structures are administered by Labuan FSA. This authority is in charge of managing jurisdiction’s International Center and acts as main local enforcement body. Firms intending to get permission for such activities apply in person to FSA….

Read more 16.03.2023

AEMI license in Cyprus

AEMI is a financial establishment that carries out electronic money circulation. According to Cyprus law, AEMIs must have an appropriate license from the Central Bank of Cyprus to ensure a high level of protection of client funds. Overview Cyprus legislation allows AEMI to carry out a wide range of financial operations, such as issuing electronic…

Read more 13.03.2023

AEMI license in Czech Republic

Today’s country has favorable legislation that makes it easy to register and conduct business in the country. The government seeks to create favorable conditions for entrepreneurial activity, which makes the Czech Republic one of the most suitable countries for obtaining a permission for an Electronic Money Institution. Authorized Electronic Money Institution (AEMI) in the Czech…

Read more 13.03.2023

AEMI license in Ireland

Ireland has one of the most developed virtual money industries in Europe. The country has several key players in the market such as PayPal, Stripe and Skrill. These firms issue virtual money and supply remittance favors to millions of customers worldwide. Overview The E-Money Act in country requires all electronic money issuers to be licensed…

Read more 13.03.2023

AEMI license in Poland

Today’s country, which has been a member of the EU from 2004, when supplying the issue of virtual money and remittance systems, must be controlled by the Second Directive of Europe and the demands of the GDPR adjustment. At the state level, the monetary controller (Financial Supervision Committee) has not formed liberal or proscriptive terms,…

Read more 13.03.2023

Crypto Regulating in Poland 2023

The popularity of crypto is growing rapidly. But the work of crypto-companies is complicated by the lack of a developed legal workspace in most states. In Poland, the government regulates digital currency. Entrepreneurs who want to work in this field register corporations in the state and supply services to inner and foreign markets. Crypto license…

Read more 09.03.2023

Cryptolicense in Germany

Germany is a favorite territory for investors searching to enroll a crypto business-company in Europe. This country is a highly-developed EU participant country with the fourth biggest economy worldwide. Country was one of the first states in the world to propose monetary establishment legal certainty permitting them to retain crypto assets. State’s crypto adjustment stipulates…

Read more 09.03.2023

Crypto registration in Isle of Man

In the past, many businessmens were interested in one of the tax-free jurisdictions – the Isle of Man. To date, Isle of Man administration agencies have passed a series of laws aimed at controlling crypto actions, mostly ICOs. If you are interested in acquiring a Isle of Man Crypto exchange permission , you should keep…

Read more 04.03.2023

UK Forex Brokerage License

The British FX brokerage permit is one of the most authoritative permissions in the world. In order to complete the operation of achieving a FX broker license in the UK, the firm must be enrolled in the country. An organizational and lawful form such as a limited liability corporation (LLC) is the best choice. Regulation…

Read more 03.03.2023