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How to get crypto license

Just 10 to 15 years ago, blockchain seemed like something out of the realm of science fiction, but…

Just 10 to 15 years ago, blockchain seemed like something out of the realm of science fiction, but today the digital technology market is coming on the heels of traditional businesses and classic banks. To work with virtual currencies, you need a crypto license. Let us tell you why you need it, what advantages it gives, and what registration requirements are stipulated in different countries. 

What is a license for cryptocurrency: types and features

Crypto license, the official permission to conduct a regulated cryptocurrency business, has become a real haven. It is a lawful instrument that allows you to legally earn income from operations with alternative financial instruments.

Depending on the jurisdiction, there are several types of crypto licenses that can cover the following types of activity:

  • cryptocurrency exchange license allows you to work with the exchange of cryptocurrency pairs, as well as with fiat (traditional) currencies to cryptocurrencies and vice versa;
  • cryptocurrency license allows decentralized platforms to perform banking functions and manage third-party finances in cryptocurrencies: storage and exchange of cryptocurrencies, cashing them out, placing cryptocurrency deposits, supporting p2p lending, using cryptocurrency as an investment, storing digital assets;
  • a crypto exchange license turns a platform into a financial intermediary (fintech) between a buyer and a seller for the exchange, sale or purchase of virtual currencies;
  • a license for blockchain providers (custody license) allows you to provide virtual wallet services;
  • the license for a crypto fund regulates the operation of an alternative investment fund based on digital currencies.

How to get a crypto license

All crypto-related licenses are issued by regulators: central banks, SEC, police, or tax authorities. Each crypto-friendly jurisdiction has different requirements for the companies planning to work in the cryptocurrency field, and only several regulators can issue the enabling documentation.

Before launching any cryptocurrency control, it is necessary to determine the “residence”. There are a number of standard requirements:

  • size and liquidity of the authorized capital;
  • package of documents (business plan, bank account details, AML/KYC policy, criminal records);
  • organizational and legal aspects (beneficiaries, founders, directors, registered office);
  • record keeping;
  • internal regulations that minimize the risks of money laundering;
  • verification of suspicious transactions and alerting the competent authorities;
  • conducting due diligence procedures.

For more information, please contact your SBSB consultant.

To date, there is no single algorithm for obtaining a crypto license, because the regulatory process for crypto assets differs from country to country, as well as the package of documents, requirements, and deadlines for applications. But the license is obligatory, because working with digital currency without authorization is fraught with fines anf other regulations for violation of the law. Let’s take a look at a few jurisdictions for crypto licenses.

How to get a crypto license in Europe

The European crypto license is a promising direction. It allows you to work in the legal field and automatically makes the business transparent. In this case, everyone wins: clients, who the licensed business is more safe for due to the supervision by a local regulator, and the licensed business itself that evokes confidence in the state regulator, business partners, and clients.

We provide services for obtaining crypto license in Slovakia, Poland, Italy, Spain, Czech Republic, Germany, Switzerland, UK, Switzerland, Malta, Estonia, Lithuania, Portugal and other European countries.

Peculiarities of crypto license in Portugal
The pros Cons
A resident company with an open account at the Banco de Portugal can obtain a crypto license in Portugal. It takes 6–8 months to get a crypto license in Portugal.
It is allowed to exchange some tokens for others, as well as for fiat.
E-wallets can be used to store virtual assets.
Trade in virtual assets is allowed.
The minimum amount of share capital is €1 per shareholder/partner.
Peculiarities of crypto license in Lithuania
The pros Cons
No residency requirements for directors and shareholders. There is the risk of increasing regulatory hurdles for licensees in future.
Support for startups by the Central Bank.
Allows providing services for the exchange of fiat money into cryptocurrency and vice versa, as well as working with cryptocurrency pairs.
The minimum amount of the authorized capital is €2,500.

SBSB specialists will help you to obtain licenses not only in European jurisdictions, but also to get a crypto license in Singapore.

Features of crypto license in Singapore
The pros Cons
Favorable legislative regulation of the cryptocurrency market. The board of directors must include Singapore residents.
The Singapore crypto license allows you to work throughout the Asian region.
No income taxes.
It is also a payment license enabling to unite crypto and payment functionality in a single company.
Singapore cryptocurrency license includes authorization to produce electronic money granted to the company-licensee and the provision of  traditional financial services.

We offer our assistance in launching a legal cryptocurrency business in Singapore. Contact SBSB specialists, and they will help you to prepare documents. We look for the best solution for each client, taking into account individual wishes. We will also advise on how to get a crypto license in Seychelles and why you should pay attention to crypto license in the United Arab Emirates.

Obtaining a crypto license is a new but necessary procedure to work within the legal framework. Electronic currencies and all operations with them require legal mechanisms of operation. SBSB consultants will help to choose the best jurisdiction and register a company. We offer a full package of services for cryptocurrency projects, including preparation of documentation for each project.

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