Crypto and blockchain license
Crypto and Blockchain License Options for Profitable Businesses
Crypto-currency is a comparatively new term. It emerged in late 2008. By and large, it is used to refer to digital currency or e-money. Even the most seasoned crypto legal advice lawyers use these terms interchangeably, so one mustn’t worry too much when operating with such expressions. The fundamental principles of almost all cryptos are:
- collective systematization;
- usage of varied cryptography procedures;
It is pivotal to underline the fact that crypto-currencies have no controlling bodies or common emission. There’s not a single central banking system that controls the value and the issuance of cryptos. This, of course, helps explain why the value of different coins fluctuates so much.
Crypto Legal Advice: Crypto Trading
In spite of the fact that there are different cryptos on the market, each
In spite of the fact that there are different cryptos on the market, each with its own set of specifications, there exists some common ground. Here are the key principles of crypto trading:
- Find as much data as you can regarding the blockchain and its core principles;
- Learn about the most popular options and their pros;
- Prioritize your efforts towards specific coins;
- Assess possible hazards and pitfalls;
- Don’t be afraid to ask crypto legal questions;
- Always seek out opportunities to improve your knowledge.
In order to launch and operate an exchange, one must obtain a license first. We will give you more information regarding how to obtain cryptocurrency exchange license further down the line, but for now, let’s focus on basic facts.
The procedure itself varies heavily depending on the jurisdiction your business will be located in. Nevertheless, there are a few common threads connected to the requirements:
- ID verification;
- Complete conformity with AML rules;
- Affiliation with a local bank or other monetary institution (more relevant for those who seek fiat-crypto blockchain software license).
Before you seek out further information regarding the best ways to launch a crypto exchange, it is pivotal to understand what you are trying to achieve in the long run.
Five Most Popular Types of Crypto Licenses in 2021
1. Blockchain Bit License (New York)
Eight years ago, NYC’s Department of Financial Services first started receiving applications from companies that wanted to operate their crypto exchange business within this jurisdiction. Six years ago, the very first official license was issued. The proud recipient was none other than Paxos (FKA itBit).
The upsides to receiving a license from NYC are plentiful and obvious. In terms of prestige, nothing beats the world-famous Blockchain Bit License.
2. Switzerland’s FINMA Authorization
Swiss governing bodies were also at the forefront of the digital currency ecosystem. Within the European market, establishing an exchange in Switzerland does seem like the most esteemed option. Even though their approach to licensing is very stern, the fact remains that “how to obtain cryptocurrency exchange license in Switzerland” is one of the top searches according to Google’s metrics.
Flexible framework, reputability, and low tax rates make this choice extremely popular with both beginners and experienced cryptocurrency marketers.
3. United Kingdom’s Financial Conduct Authority License
Not too long ago, the UK decided to legalize crypto. Their main monetary regulator, Financial Conduct Authority (FCA), can now issue licenses to companies that seek to open a cryptocurrency exchange business on British soil. Of course, it’s a very reputable jurisdiction that is highly trusted both in and outside of Europe. Since the UK was always a country that welcomed innovations, the legal procedure of obtaining a blockchain software license is decidedly uncomplicated. Yet it is legitimately stringent, which is something to keep in mind
4. Estonian Financial Intelligence Unit – Operating License
For this section, we are not going to discuss history or speak about the process. We’re just going to rattle off some of the key advantages:
- 0% tax on corporate income. That’s why many financial analysts consider Estonia to be the best license for blockchain license issuer.
- Straightforward and completely transparent process of application, issuance, and approval.
- No continual licensing fees or other financial burdens.
- High level of responsibility from both companies and government.
- Variety of services that your business can offer after being licensed by the Estonian Financial Intelligence Unit.
5. Best License for Blockchain License – Singapore
The fact that this country’s governing bodies were extremely quick to legalize crypto and recognize its true potential as an innovative asset class, helped solidify Singapore’s status as Asia’s crypto hub.
Here are the three main upsides to starting a crypto exchange venture in this country:
- Innovative framework;
- Government is flexible when it comes to most crypto legal questions;
- Low taxation rate (17%).
Of course, if we were to open up about the other advantages, it might come off across as too positive. Remember that we are not here to write a puff piece, but to provide our objective opinion.