How to open a crypto company?
Opening a cryptocurrency company is not an easy task but it’s not impossible either. In order to make sure that the launch of your crypto project (in this case – crypto exchange) goes smoothly, you’ll need to formulate a plan. The usual plan for crypto projects is to open an exchange through a business entity such as a Limited Liability Company. The very first set of the process is gathering enough intel regarding the rules and conditions for obtaining a crypto exchange license. You will need to fully analyze the reasons why it’s important to have a license, make sure you understand the key requirements, etc. It’s best to schedule a consultation with an experienced attorney who will give you legal advice regarding the license application process, customer protection requirements, and more. After you gain all of that data and initiate the process of receiving proper licensing, you’ll need to find the funding for your project. From there, you’ll need to find appropriate software, partner up with other exchanges and payment processing companies, along with creating a live beta. Later, once you launch, you will need to provide customer support 24/7, maintain compliance, expand, and adjust based on the market.
What documents are needed for a crypto license in different countries?
Different countries have vastly different requirements for an exchange license. Some requirements are simply irrelevant to the rest of the world, so you’ll need to ask a lawyer to ensure that you have the right selection of documents and the right jurisdiction in mind. Conducting analysis will help avoid potentially costly penalties. The most standardized document list required for a cryptocurrency license includes:
- Business strategy
- AML policy
- Proof of no criminal records
Some of the European countries have much stricter requirements for cryptocurrency exchange license applications. For example, in some Central European states, you need at least 6 years of professional work experience and expertise in related fields in order to obtain a suitable license. Offshore jurisdictions, on the other hand, remain the preferred option for those that want to avoid these strict requirements. These jurisdictions don’t ask you to provide many documents, especially paperwork outside of the core list mentioned above.
Which companies can help with obtaining a crypto license?
There are many law firms in the world that specialize in the cryptocurrency industry. Most of them have a presence in multiple countries. So, depending on your location, it might make sense to contact a firm with a local office. If face-to-face interaction is not that important to you, it might make sense to look for a business with the best reputation online. A business with better reviews from its customers can be more reliable. Similarly, if you’re looking for highly qualified staff, it might be helpful to look for a firm that uses relevant certification logos. If you’re looking for something on the cheaper side, you should look at the prices first and foremost. The companies providing cheaper services don’t necessarily have the same amount of experience and expertise. After all, not everyone will require the same level of service and not every case is difficult. Be sure to assess your project’s requirements before you decide on a law firm that will help you along the way. The more you understand in terms of your project’s specifications, the more accurate your choice will be.
There are other sources of help too. Sometimes, you can just read up on someone else’s experience in their blog. Others, you may want to contact them directly to get more advice. Some companies are willing to share at least some experience for free, but don’t count on receiving any personalized advice.
Conditions for obtaining a crypto license in different countries?
As already established, different countries have different sets of requirements for obtaining a crypto license. In most countries, the requirements vary depending on the type of entity you’re applying for, but that just complicates things even further. Instead of discussing the differences and intricacies, it makes more sense to focus on a sole country and use it as an example.
Lithuania is a very progressive country when it comes to the cryptocurrency industry. This is due to the highly profitable cryptocurrency mining and trading business that was doing well within its borders. You can find Lithuania in the top 10 richest cryptocurrency countries in the world and that’s the reason why their requirements are strict. There’s a minimal share capital requirement of 2,500 Euros. There are strict requirements regarding stockholders and executives, the number of board members, and the experience/skill levels of AML Compliance Officers. This is not the complete list of requirements, either. Compared to Lithuania, most jurisdictions are more lenient. That is also why it’s best to focus on one country when dealing with your cryptocurrency license.
Benefits of getting a crypto license?
Depending on your business and the nature of your product or service, you can quickly secure yourself a better position in the cryptocurrency industry. There’s no question of if you’re going to improve your standing in the world of crypto by receiving appropriate licensing, but instead, the question is when? The process of obtaining a crypto license can skyrocket the value of your business in a very short time, so it’s not a bad idea to move on to it as soon as possible. If you receive advice or maybe even assistance (many companies provide you with advice/help until the very end) you can avoid a lot of trouble. Make sure to consider the option of enlisting the help of one of the law firms mentioned in the previous paragraphs if you need to get ahead of the curve.
The result of your improved standing in the world of crypto start-ups is more money coming your way. The simplest way to describe this is this – if you get a crypto license, you will make more money which is considered the ultimate benefit for a company. It’s what companies like Binance and other businesses strive for.