Over the past year, one can observe the rapid development of cryptosphere regulation in various countries. One of the elements is the licensing of companies that provide various crypto services.

There is also a demand from the crypto industry to create a secure infrastructure for cryptocurrency exchange. One of the leaders in such requests is Moscow, as a major financial center in Russia, while Russia still lacks special laws aimed at legalizing crypto-business.

Now, in many countries, a crypto exchange or crypto exchanger must obtain licenses in order for their operations to comply with local laws.

Thus, a license of a cryptocurrency exchanger or exchange confirms the legality and reliability of the company in the eyes of customers and partners, and allows the company to carry out a wide range of operations with cryptocurrency, including exchange, storage, transfers and other activities.

Types of cryptocurrency license

To legalize cryptocurrency transactions, various types of licenses are available to companies, including:

  • Consulting license for companies that provide consulting services in the field of investment in cryptocurrencies.
  • Brokerage license for organizations that broker cryptocurrencies.
  • Custodian license for crypto wallets and other services that provide storage of digital assets.
  • Exchange license for platforms that exchange cryptocurrencies.  This is the license that crypto exchanges or crypto exchanges can use to carry out their activities.

It is also important to note that in certain jurisdictions there are no special licenses for business in the field of cryptocurrency activity, i.e. such work of the company is not a licensed activity. But at the same time, a crypto exchange can obtain classic licenses of financial institutions, allowing to carry out activities in the cryptosphere.

Instructions for obtaining a license for cryptocurrency activity

The licensing process has several steps. First of all, in order to obtain a license, it is necessary to determine the country in which the company will be registered and where it will be licensed. Next, you will need to register a legal entity in the selected jurisdiction. At this stage, the company should be ready to meet the necessary requirements to obtain a license. Proper technical preparation in the form of providing the necessary software and technical infrastructure is also necessary. After that, you can apply for a license.

In order to obtain a license, you must apply to the appropriate government agency for registration. The licensing procedure and requirements can vary greatly from jurisdiction to jurisdiction.

Obtaining a license requires careful preparation and compliance with strict regulations. When obtaining a license, it is recommended to find an experienced legal professional who can support the company at all stages of the administrative procedure. GMT Legal has the necessary experience and is ready to assist in the process of obtaining crypto licenses in various jurisdictions