Launching and running a cryptocurrency exchange requires observing stricter regulatory demands than other types of businesses have.  There are more regulatory risks compared with other types of crypto projects. Even minor non-compliance may lead to rejection during the license application process and the annulment of an issued license as well. Prifinance Company crypto currency license services help eliminate these risks and maximize the chances of obtaining necessary approvals. The application process for a cryptocurrency license varies in every country. Still, some basic points are similar between jurisdictions.

Starting Points about Cryptocurrency Licensing

It should be noted that the term “cryptocurrency license” is a bit general. In fact, a separate type of license called a cryptocurrency service provider license exists in several jurisdictions. In most countries, it is usually more correct to refer to a license that allows managing of customers’ crypto assets and providing custodial services, such as a custodial crypto wallet. In most jurisdictions, local legislative and regulatory bodies simply expanded the scope of existing licensing regimes applicable to financial institutions to  the operations with crypto assets.

In any case, there are general points that are attributed to licensing regimes applied to crypto assets:

• There is always a need of incorporating a separate legal entity responsible for carrying out transactions with crypto assets. Such a legal entity should have a clear business plan to demonstrate to a regulator. The business plan should be extensive and precise and contain financial projections and balance sheets demonstrating a sufficient amount of own funds. A legal entity that acts as a licensee should be established and operate in a particular legal form (commonly – that is a joint-stock company).

• There are specific requirements with regard to the amount of statutory capital that has to be contributed to such a legal entity.

• In most jurisdictions, specific requirements with regard to the qualifications of the company’s board members and employees,  and their reputation are applied.

• Also, a future licensee should possess sufficient technical and informational resources to handle business.

• Taking into account that a future licensee will deal with customers, effective internal policies should be developed and adapted to the specific terms of service (KYC/AML and data protection policies are needed).

• A licensee has to ensure ongoing monitoring of transactions  carried out with crypto assets.

• Arranging cooperation with reliable banking operators is also necessary for the course of running a crypto exchange.

Further Ongoing Compliance

After the company’s incorporation and successful application for a license, a newly licensed entity should carry out ongoing monitoring of all transactions that are carried out through the exchange. It is also necessary to fulfill the terms and rules of KYC and AML policies. Notifying the regulators about the cases of suspicious transactions and terrorist financing cases is also required to prevent any negative consequences for a licensee. Specific reporting demands have to be observed.

How Prifinance Specialists May Help You

If you wish to manage  crypto assets, it is necessary to identify the most suitable target jurisdictions to launch a crypto project in and emphasize its specifics, especially in the case of  a crypto currency exchange. While obtaining a license, it is necessary to take into account specific conditions of a licensing regime in a chosen jurisdiction.

Prifinance specialists are ready to facilitate you with the realization of your business goals, including but not limited to:

• assessing the background and business objectives in your case and choosing  the most suitable country for crypto licensing;

• suggesting the most appropriate company type and registering a legal entity;

• developing and implementing all required policies (KYC, AML, tracking, reporting, data protection, etc.);

• opening bank accounts and  connecting with payment operators;

• assisting with resolving any other issues that may appear over the course of the crypto exchange operation.

Provide a detailed description of your business project to obtain more precise consultations and registration solutions. Prifinance specialists assist effectively with getting a cryptolicense even in very complicated cases.