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.
Conventionally, cryptoexchangers can be classified as follows.
Accordingly, licenses are also divided into two types. In addition to these two types, two more groups can be distinguished separately:
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:
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:
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:
The best solution would be to purchase a ready-made cryptocurrency license with comprehensive specialized aid.
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?
Today, the authorities of Hong Kong are quite neutral about cryptoexchanges. The regulator puts forward very specific requirements for such structures and related licenses.
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.
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.
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.
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.