As the world continues to embrace cryptocurrency, more countries are developing regulations to govern the sector. If you’re thinking about starting a cryptocurrency business, it’s important to make sure you’re operating legally. One way to achieve this is to obtain crypto license. Below we will look at the best crypto license jurisdiction list for getting this type of permit and the specifics of using the assistance of specialists in the implementation of such a commercial idea.
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Importance of Regulatory Compliance in the Crypto Industry
Cryptocurrency as a financial instrument no longer surprises anyone, and therefore this market is gradually becoming widespread throughout the world. Today, many countries are striving to attract crypto business to their territories and, in this regard, are creating conditions for its development.
The advantages of getting a crypto license are listed below.
- Legal existence of the company. The first thing a cryptocurrency exchange license is needed for is to legitimize the company’s work, without the risk of receiving a fine or criminal liability (depending on the country). The cryptocurrency exchange is part of an industry that is strictly regulated by regulatory authorities. Without a license, a business will not last long and will be closed, and a case may be brought against its organizers.
- Customer trust. A licensed company increases trust on a subconscious level. Such a company will attract large investors who will constantly carry out exchange operations. The result is increased profits.
- Cooperation with banks. A cryptocurrency license facilitates the interaction of businesses with the banking system, that is, it solves the problem of bank distrust in activities related to cryptocurrency. 99% of financial institutions will refuse to work with an illegal crypto exchange.
- Offering additional services to clients. Licensing a crypto company – expanding the list of services. This allows us to offer solutions that are relevant to customer needs and requirements. One of these is the exchange of fiat money for different cryptocurrencies, sale/purchase of futures and similar solutions.
As crypto industry standards say, licensed VASPs may offer next-mentioned. According to the FATF classification and definitions, a VASP is any individual or legal entity that conducts business, provides services or carries out transactions for the benefit of another individual or legal entity in next-mentioned areas.
- Crypto vs fiat exchange service. Exchange between virtual assets and fiat currencies (classical money).
- Crypto vs crypto exchange service. Exchange of one or more forms of virtual assets for other virtual assets.
- Execution of crypto transfers. A virtual asset transfer is defined as a transaction on behalf of another individual or legal entity that involves moving a virtual asset from one address or virtual asset account to another.
- Custodian virtual currency wallet service. Providing, through an appropriate IT solution or other technological mechanism, services for the storage and/or administration of cryptocurrencies and other virtual assets, while retaining clients’ full right to control and dispose of virtual assets.
Thus, providers with crypto license have access to a wider range of services. This is their commercial advantage and the main foundation for creating and maintaining competitiveness.
TOP Crypto License Jurisdiction List
The search for the most profitable jurisdiction for crypto-business should begin with studying the country and carefully preparing the issue that interests you. In order not to lose your money, you need to study local crypto law well. However, we must take it for granted that since crypto business is a relatively young part of entrepreneurial activity, it is not possible to find an ideal jurisdiction for its conduct.
List of TOP crypto license jurisdiction spaces includes several jurisdictions, which we’ll list below.
Lithuania
A crypto-company in Lithuania is an opportunity to save on organizational issues and quickly gain access to the European market. Its advantages are next-mentioned.
- Companies can issue ICOs and conduct them through crowdfunding platforms.
- Crypto-businesses in Lithuania can partially use tokens in their work.
- The country issues crypto licenses. One is for the exchange of tokens for other crypto and fiat currencies, the other is for the service of storing cryptocurrency in virtual wallets. The license price is one of the cheapest in the world.
- An application for a crypto license is processed in only 2 months, which is much faster than in other countries.
Estonia
Estonia is another jurisdiction known for its favorable cryptocurrency regulations. The country offers a virtual currency service provider license, which covers activities such as cryptocurrency exchanges and wallet providers. The licensing process in Estonia is simple and can be completed entirely online, making it easier for businesses to get a permit.
Georgia
Georgia as a highly-friendly crypto license country has legalized the activities of crypto companies, allowing them to exchange tokens, credit and debit money to accounts, and offer services for storing money in virtual wallets. To do this, you need to obtain crypto license in Georgia.
Other advantages of the country for crypto-business are next-mentioned.
- Crypto-industry is growing rapidly.
- You can safely trade cryptocurrency.
- Exchange of tokens for lari and other fiat currencies is not subject to VAT.
- Cheap electricity allows you to engage in this type of crypto business in Georgia, such as mining.
- You can pay with cryptocurrency if the seller agrees.
Singapore
Singapore is one of the most developed countries in the world and also a center of cryptocurrency activity. The country’s regulatory framework is favorable for blockchain and cryptocurrency businesses, making it easier for startups to get a permit. Monetary Authority regulates all cryptocurrency activities in the country.
Croatia
Crypto business is popular in Croatia. In the first six months of 2021, the turnover of cryptocurrency in the country amounted to 900 million kunas, so the government, aware of the profits, is creating favorable conditions for crypto-companies are next-mentioned.
- Tokens are legal in the country, although they are not an official means of payment. But they can be safely sold, stored, and transferred.
- Crypto-exchanges and platforms for manipulating virtual assets operate in Croatia.
- Crypto-company in Croatia is not required to report the transactions and income it received in the form of tokens.
Licensing Procedure and Key Documentation
There is no specific step-by-step scheme. Different jurisdictions have their own laws, normative points, regulatory frameworks and rules. Typically, getting a crypto-license is performed in the following sequence.
- Registering a business in a specific jurisdiction.
- Opening a bank account (corporate).
- Compliance requirements fulfillment. Hiring experts with the necessary qualifications of an AML-officer: he/she will monitor the firm and prevent illegal monetary means circulation, and crypto compliance officer who will be responsible for communication with clients and other communications.
- Purchase, installation and configuration of software and hardware solutions for the formation of IT infrastructure.
- One of most significant crypto license requirements is preparation of documents for business legalization and their transfer to the control authority.
Getting a crypto-license is necessary for anyone who wants to conduct a cryptocurrency-related business legally. When looking for the best jurisdiction to get a permit, it is important to consider factors such as the country’s regulatory framework, the licensing process, and the cost of getting permission. The above jurisdictions are among the best for getting a crypto-license, and they offer a favorable regulatory environment for blockchain and cryptocurrency businesses.
Our team is first-class specialists in this industry. We are ready to become your reliable allies on the path to getting licenses and the general process of establishing your business. Contact us right now and ensure effective results in the shortest possible time.
Article’s author is Denys Chernyshov – founder and CEO of the globally-famous organization Eternity Law International.
