Crypto exchange licence
Many entrepreneurs have appreciated the potential of cryptocurrencies and seek to expand their activities by working with them. In order for advanced global technologies and alternative financial instruments to bring legal income, it is necessary to obtain special permission from the authorities of the jurisdiction in which the company is registered.
The cryptocurrency license opens up the possibility for business to perform payment and exchange online operations in which cryptocurrencies are involved on the same basis as traditional (fiat), provide services, sell goods for cryptocurrency, perform intermediary functions, issue cryptocurrencies, place tokens.
How to get a cryptocurrency license?
Jurisdictions have their own requirements for companies receiving the license – their form, beneficiaries, founders, management, legal and «real» address, the package of documents that the company must submit to the licensing authority – you need to describe the risks associated with financial instruments, provide business plans, programs to ensure AML-legislation, confirmation of professional level of management, account, which is opened for transactions with cryptocurrencies – special accounts available in the US, many jurisdictions allow the use of a standard, and brokerage account or bitcoin wallets, authorized and current capital – its size, liquidity, sufficiency for operations and licensing procedure – the amount of duties, deadlines for consideration of applications, additional documentation that may be required by the regulator.
Advantages of crypto exchange license.
Investing in cryptocurrency has a number of advantages including
- evasion of fees
- easy access to a wide range of investment opportunities
- direct control over investments.
Basic requirements for obtaining crypto exchange license.
Usually, entrepreneurs wishing to engage in cryptocurrency exchange license, when issuing a license are required to provide:
- the name of the company and its legal address;
- the name of the brand under which the crypto exchange will operate;
- list of recent offences committed by the complainant (exact period of time in each state);
- information on ongoing legal proceedings where the applicant is a party;
- a list of the financial services provided by the applicant in the past (if any) and the services it intends to provide;
- list of locations where licensed services will be provided;
- list of employees engaged in work with clients;
- a list of states where financial activities are also planned;
- information on the current bankruptcy processes in which the applicant appears;
- model customer contract.
Features of crypto exchange license
Crypto exchange license deprives central banks of the ability to manage the money supply, as these banks tend to reduce the value of money through inflation over time. Crypto exchange licence technology, called blockchain, because it is a decentralized processing and recording system and it can be more secure than traditional payment systems.