Licensing may appear to be a bit frightening thing for those businessmen who have faced it for the first time. In fact, it always adds extra bureaucracy to the process of the realization of any commercial idea.
The crypto industry is associated with big ambitions and challenges, so the requirements for licensing are pretty specific in this case. Even if there are no separate licenses for cryptocurrencies in most states (the most common approach is that the states simply adapt local laws to the introduced challenges), the crypto exchange must have an active license for dealing with crypto assets. Prifinance attorneys have a vast experience in this case and can help you to become a holder of a crypto currency exchange license – attorneys have realized more than 200 crypto projects successfully. And they are also ready to share with you core practical points about licensing.
Core Points That Are More or Less Common for All Licensing Regimes
Licensing is a special authorization provided by the governmental authorities to applicants who comply with the respective legal norms and standards. Such standards are applied to the types of activities that have to be regulated. This may be needed due to the high entrepreneurial risks and the same high potential profitability of the target activities. Deals with crypto assets are the exact ones. They fully correspond to the stated criteria, so they fall under the licensing regimes in most states now.
If you are focused on obtaining a license for your trading platform, these aspects are must-have ones under any circumstances:
- Developing sufficient AML/KYC and other policies. Decentralization and flexibility have many risks on the reverse side – they are associated with money laundering and terrorism financing, unfortunately. The core aspect to prove to any regulator is that your trading platform is capable to address these issues effectively through clear and workable policies, permanent client identification, extra checks in the cases of potentially suspicious transactions, and reporting.
- Having a separate corporate entity with a clear history. The regulator should have information about its founders, beneficiaries, managers, and corporate group (if any). All records should be fixed and clear, especially if we speak about buying an existing company to make a future crypto trading platform of it.
- Reserving and using enough IT, technical, and financial resources.
- Having professional staff with a good reputation and excellent qualifications, including a compliance manager.
- Informing potential customers fairly about the essence of deals and products offered through the platform.
How Prifinance Attorneys Can Facilitate You
If you are unaware of all the nuances of crypto licensing, Prifinance attorneys are prepared to guide you at each stage of getting your permit, including through these legal services:
- accessing your background and business objectives to shortlist the most suitable jurisdictions in your concrete case;
- collecting all background details and arranging them according to the requirements of the regulator in the chosen jurisdiction;
- drafting registration, statutory, and supporting documents for a licensing application;
- supporting the cooperation with banking and/or EMI institutions, including in the course of opening accounts and carrying out transactions associated with a cryptocurrency exchange;
- facilitating the negotiations with local state authorities, including regulators, customers, and contractors during the next operation of a newly-founded crypto trading spot.
Forward the details about your project and business ideas – obtain personalized solutions from experienced attorneys who will render you comprehensive support in this course.
