Types of cryptocurrency exchange license
The type of cryptocurrency exchange license received will depend on what operations are planned to be carried out. If we are talking about operations such as «crypto-fiat» (exchange of cryptocurrency for real money), it is necessary to obtain a license Money Transmitter License. If the person or company is going to carry out operations in the format of «crypt-crypt» (work only with cryptocurrencies), then for such activity it will need to receive the so-called MSB (Money Service Business) License.
How to obtain a cryptocurrency exchange license?
To obtain a license, it is necessary to contact the appropriate government body, if it provides licenses to work with cryptocurrencies. Which body to contact depends on what kind of activity the company is engaged in. If it is a stock exchange, then this competence belongs to the securities commission and similar structures. If the company is engaged in normal trading activities, i.e. providing services or selling goods, the tax authorities regulate the activities of such firms.
The process of obtaining a cryptocurrency exchange license
The complexity of the process of obtaining a cryptocurrency exchange license depends on the laws and regulations of the regulators of cryptocurrency operations in each individual country. The applicant company must meet certain requirements to the size and liquidity of the authorized capital, the organizational and legal form of the business, the beneficiaries and founders of the company, its legal address, as well as to the cryptocurrency account.
- Companies operating in a legal field oblige their customers to undergo an identity verification procedure established by law in accordance with the policy of KYC and AML.
- Exchanger (i.e. the person providing virtual currency exchange services) can accept, transfer, buy and sell virtual currency, and its status is defined as «Money Transmitter» and is regulated «in accordance with FinCEN regulations».