Crypto trading license allows legally exchange, sell or buy cryptocurrency. Crypto exchange trading platform brings together buyers and sellers of cryptographic currency, guaranteeing the reliability of transactions. The speed and correctness of transactions depends on the optimization of the code on the trading engine with which the cryptocurrency exchange operates. The task of the engine – to check the orders for the security of assets, to conduct the accounting of orders in the database, to prepare data for display on the display of the trading terminal or mobile application.
Crypto trading license
The importance of crypto trading license
Legalization of business protects funds and data of users at the legislative level. The lack of a licence allows cases to be conducted anonymously, but at the same time provides opportunities for money laundering and the financing of terrorism. And these problems are considered to be among the most urgent for all types of financial business. Cryptocurrency exchanges, which are have crypto trading license and operate in the legal field, oblige their clients to undergo verification procedure in accordance with the KYC and AML policy. Trust in such platforms from clients and partners is increasing. Echanges without a license are limited in the number of transactions, as they will not be able to exchange cryptocurrency for fiat money, transfer funds to countries where virtual money is illegal. It is difficult for such enterprises to open a foreign bank account.
Basic package of documents:
- Certificate of incorporation;
- KYC documentation;
- risk assessment documents.
Crypto trading license requirements.
Establishment of an enterprise in the territory of the country where the licence will be sought. The most commonly specified form of such an enterprise, its minimum statutory fund, the presence of a physical office in the territory of the country;
Having a bank account and keeping accounting records according to the rules of the country jurisdiction of the crypto exchange;
Registration with the tax regulator and payment of taxes, at a specified rate and within the deadlines prescribed by law; in many countries, digital assets are subject to tax holidays or preferential rates to attract new companies;
The addition of a specialist to the Security Audit of Ongoing Operations; the same specialist will inform the relevant authorities in the case of suspicious transactions that may be deemed to be terrorist financing or money laundering operations, obtained illegally;
Preparation and submission of all necessary documents, payment of the state fee; this can be done independently, or you can entrust the process of submission of documents to specialists;
Obtaining a license to conduct trading in cryptocurrencies, sometimes separately – exchange of cryptocurrencies for fiat money and back.