Сrypto license
Obtaining a crypto license is the key to legally operating in the global cryptocurrency market. With a crypto license, you will be able to offer your services across various crypto markets, legally collaborate with clients from different countries, and unlock new opportunities for your business.
Depending on the license you choose, you will be able to:
A crypto license opens doors for scaling your business, attracting investors, and reducing risks associated with regulatory non-compliance.
Obtain a crypto license
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Why get a crypto license with us?
Our experts will assist you in selecting the most advantageous and convenient country to register your company in. Fintech Harbor lawyers are aware of the unique requirements for acquiring a crypto license in various jurisdictions.
Save your time
We’ll handle all the hard work, complicated steps, and lengthy processes, saving you time and effort.
Legal expertise in this area
Our lawyers possess vast expertise and experience in obtaining crypto licenses across multiple jurisdictions.
Stress reduction is our priority
We will handle any potential stressors and effectively resolve any issues that may arise.
Types of crypto license
A wide range of licensed crypto activities are outlined in the MiCA (Markets in Crypto-assets) Regulation. It is an EU legislative act which implements unified crypto regulation in EU member states. It will take effect in 2024-2025. Mica provides the following types of licensed crypto activities.
1 Custody and administration
2 Trading platform operation
3 Crypto-asset exchange
4 Order execution
5 Crypto-Asset Placing
6 Transfer services
7 Order reception and transmission
8 Crypto-asset advice
9 Portfolio management
1 Custody and administration
A crypto custodian is the keeper of the private keys that ensure your crypto assets are hard to access. Providers of this service must keep records and register any movements of cryptocurrency. They have to strictly separate their funds from clients’ funds. Crypto custodians do not store the assets themselves. Instead, they keep a cryptographic private key which gives access to your assets.
2 Trading platform operation
CTPs are online systems that bring together buyers and sellers of crypto-assets. Such platforms allow them to carry out transactions and trades. Some CTPs allow users to buy and sell crypto-assets, receiving them instantly in their wallets. In this case, the user buys, and the platform must deliver the assets directly to the user’s wallet, where they have full control.
Other CTPs hold onto the crypto assets in a platform-controlled wallet. This means users depend on the platform. Their crypto assets stay on the platform. The platform controls them until users move them to their wallets or exchange them for fiat currency.
Other CTPs hold onto the crypto assets in a platform-controlled wallet. This means users depend on the platform. Their crypto assets stay on the platform. The platform controls them until users move them to their wallets or exchange them for fiat currency.
3 Crypto-asset exchange
Crypto exchanges allow you to trade with other users without a third party. Exchanges allow traders to sell and buy amongst each other based on current market prices. Crypto exchanges can be centralized or decentralized.
Centralized Exchanges (CEX) are like regular banks for crypto. They handle transactions between users, offer a marketplace, and make sure everything follows the rules. But, your crypto is in their wallet, so it’s not entirely in your control, which can be risky.
Decentralized Exchanges (DEX) are different. No middleman or central authority is involved. Transactions go directly from one user to another using smart contracts on a blockchain. You’re in control of your funds, but that also means you’re responsible for their safety.
Centralized Exchanges (CEX) are like regular banks for crypto. They handle transactions between users, offer a marketplace, and make sure everything follows the rules. But, your crypto is in their wallet, so it’s not entirely in your control, which can be risky.
Decentralized Exchanges (DEX) are different. No middleman or central authority is involved. Transactions go directly from one user to another using smart contracts on a blockchain. You’re in control of your funds, but that also means you’re responsible for their safety.
4 Order execution
When a company executes orders for clients in the crypto market, it means they’re making agreements to buy or sell cryptocurrencies for those clients. This can also involve subscribing to cryptocurrencies on behalf of clients. In doing so, the company must always act in the best interest of the client and take all necessary steps to get the best possible deal for them.
5 Crypto-Asset Placing
The main purpose of such CASPs is to promote crypto-assets to potential buyers on behalf of the seller. The placing of crypto-assets is purely about marketing. It’s done for the seller’s benefit. This service is for the people or organizations selling crypto-assets. If the firm also interacts with the buyers in other ways that meet specific criteria, it could be considered as providing other crypto-asset services.
6 Transfer services
Such CASPs provide services of transfer, on behalf of a natural or legal person. Crypto assets move from one distributed ledger address or account to another.
7 Order reception and transmission
Such CASPs receive orders from clients for cryptocurrency buy or sale. Jedoch, they do not directly take part in the transaction. They transfer such orders to a third party. Usually, CASPs place such orders on trading platforms. The main purpose of such providers is to find your order a suitable match from other user’s orders. Once a suitable match is found, the service facilitates the transaction. This way, you don’t have to personally find someone to trade with. The service does the matchmaking for you.
8 Crypto-asset advice
Providing advice on cryptocurrency assets is a type of investment advice. It can be provided both at the request of the client and at the initiative of the CASP. Providing personal recommendations involves direct communication with the client. Such recommendations must follow the client’s personal circumstances.
9 Portfolio management
Portfolio management is the process of selecting and managing a group of investments. In crypto, this means selecting different tokens and coins. The portfolio can include one or more cryptocurrencies. The main goal is to meet specific financial results and mitigate risks. The portfolio management of crypto assets is carried out within the limits established by the client. The expected return of the portfolio is a typical financial aim. The provider must apply an individual approach to each client.
Custody and administration
A crypto custodian is the keeper of the private keys that ensure your crypto assets are hard to access. Providers of this service must keep records and register any movements of cryptocurrency. They have to strictly separate their funds from clients’ funds. Crypto custodians do not store the assets themselves. Instead, they keep a cryptographic private key which gives access to your assets.
Trading platform operation
CTPs are online systems that bring together buyers and sellers of crypto-assets. Such platforms allow them to carry out transactions and trades. Some CTPs allow users to buy and sell crypto-assets, receiving them instantly in their wallets. In this case, the user buys, and the platform must deliver the assets directly to the user’s wallet, where they have full control.
Other CTPs hold onto the crypto assets in a platform-controlled wallet. This means users depend on the platform. Their crypto assets stay on the platform. The platform controls them until users move them to their wallets or exchange them for fiat currency.
Other CTPs hold onto the crypto assets in a platform-controlled wallet. This means users depend on the platform. Their crypto assets stay on the platform. The platform controls them until users move them to their wallets or exchange them for fiat currency.
Crypto-asset exchange
Crypto exchanges allow you to trade with other users without a third party. Exchanges allow traders to sell and buy amongst each other based on current market prices. Crypto exchanges can be centralized or decentralized.
Centralized Exchanges (CEX) are like regular banks for crypto. They handle transactions between users, offer a marketplace, and make sure everything follows the rules. But, your crypto is in their wallet, so it’s not entirely in your control, which can be risky.
Decentralized Exchanges (DEX) are different. No middleman or central authority is involved. Transactions go directly from one user to another using smart contracts on a blockchain. You’re in control of your funds, but that also means you’re responsible for their safety.
Centralized Exchanges (CEX) are like regular banks for crypto. They handle transactions between users, offer a marketplace, and make sure everything follows the rules. But, your crypto is in their wallet, so it’s not entirely in your control, which can be risky.
Decentralized Exchanges (DEX) are different. No middleman or central authority is involved. Transactions go directly from one user to another using smart contracts on a blockchain. You’re in control of your funds, but that also means you’re responsible for their safety.
Order execution
When a company executes orders for clients in the crypto market, it means they’re making agreements to buy or sell cryptocurrencies for those clients. This can also involve subscribing to cryptocurrencies on behalf of clients. In doing so, the company must always act in the best interest of the client and take all necessary steps to get the best possible deal for them.
Crypto-Asset Placing
The main purpose of such CASPs is to promote crypto-assets to potential buyers on behalf of the seller. The placing of crypto-assets is purely about marketing. It’s done for the seller’s benefit. This service is for the people or organizations selling crypto-assets. If the firm also interacts with the buyers in other ways that meet specific criteria, it could be considered as providing other crypto-asset services.
Transfer services
Such CASPs provide services of transfer, on behalf of a natural or legal person. Crypto assets move from one distributed ledger address or account to another.
Order reception and transmission
Such CASPs receive orders from clients for cryptocurrency buy or sale. Jedoch, they do not directly take part in the transaction. They transfer such orders to a third party. Usually, CASPs place such orders on trading platforms. The main purpose of such providers is to find your order a suitable match from other user’s orders. Once a suitable match is found, the service facilitates the transaction. This way, you don’t have to personally find someone to trade with. The service does the matchmaking for you.
Crypto-asset advice
Providing advice on cryptocurrency assets is a type of investment advice. It can be provided both at the request of the client and at the initiative of the CASP. Providing personal recommendations involves direct communication with the client. Such recommendations must follow the client’s personal circumstances.
Portfolio management
Portfolio management is the process of selecting and managing a group of investments. In crypto, this means selecting different tokens and coins. The portfolio can include one or more cryptocurrencies. The main goal is to meet specific financial results and mitigate risks. The portfolio management of crypto assets is carried out within the limits established by the client. The expected return of the portfolio is a typical financial aim. The provider must apply an individual approach to each client.
Crypto license сost
Nowadays, more and more territories allow you to get a license to operate a crypto business. The cost of a Crypto license in the Czech Republic starts from €8,000, Poland also costs €8,000, and Canada – $18,250. It is also worth considering the annual renewal cost, tax rates, and franchises. Kontaktieren Sie uns, and we will advise you on how to get a crypto license in a reputable jurisdiction.
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I want to thank the company’s lawyers for their qualified assistance in registering cryptocurrency licenses in Estonia. The service was above our expectations, and I highly recommend it.
We contacted Fintecharbor on obtaining a cryptocurrency license and received comprehensive information. With this assistance, we were able to prepare a package of documents in a short time.
FAQ
How much does the crypto exchange license cost
Since the crypto exchange license cost varies due to many factors, it is impossible to give you a rough calculation of the fees. It could cost approximately from a few thousand euros to hundreds of thousands to obtain a license for crypto exchange.
Is cryptocurrency legal in Europe?
Cryptocurrencies are legal across the European Union with individual member-state regulations.
How to get a license for cryptocurrency?
To receive a crypto license, you must complete the following steps:
- Learn about local regulation and licensing categories.
- Create a detailed business strategy and the necessary paperwork.
- Submit your application to the appropriate regulatory body.
- Maintain strict AML/KYC, security, and financial controls.
- Regulators will evaluate your application.
- You can lawfully operate after you have been approved.
How much does it cost to obtain a crypto license?
The cost of obtaining a crypto license depends on the jurisdiction and the types of activities that the company plans to carry out; an individual offer is available upon request.
How long does it take to obtain a crypto license?
The timing of obtaining a cryptocurrency license also depends on the jurisdiction; it usually takes more time than just registering a legal entity. For example, on average, obtaining a crypto license in Estonia takes 2 to 6 Monate, including preparing and collecting the necessary documents.
What documents are needed to apply for a crypto license?
For example, in order to obtain an Estonian crypto license, you need to present a full package of documents on the registration of a legal entity. You also need a local director with a crystal clear business reputation. You will need to comply with anti-money laundering procedures and provide proof of the origin of the company’s funds and its owners. You need to carefully work out the privacy policy, terms of use of services, and protection of personal data. All this information should be publicly available on the company’s website.
How do I become a crypto broker?
To become a crypto broker, it is required to establish a company and obtain the required license. To obtain a license, the company should fit with paid-up capital requirements, professional staff, and AML & CFT policies. Moreover, the owner of the crypto broker should have a good reputation, a clear criminal record, and proof of funds according to the laws.
Which jurisdiction is the most favourable for the crypto business?
Most Crypto-Friendly Jurisdictions in 2023
- Singapore
- Polen
- Estland
- Canada
- Gibraltar
Are there any taxes for cryptocurrency companies?
The acquisition of cryptocurrency is not taxable. The fact of acquiring cryptocurrency does not confirm the fact of making a profit. In case the company receives income from the services that they provide the taxation varies from country to country and other factors.
What is the validity period of a cryptocurrency license in Europe?
As a common rule, most countries allow licenses for an indefinite period of time.
Which agency regulates cryptocurrency companies in Europe?
National Authorities. Cryptocurrency regulations are often enforced at the national level by financial regulatory bodies or central banks. For example, in Germany, the Federal Financial Supervisory Authority (BaFin) regulates crypto-related activities. In France, the Autorité des Marchés Financiers (AMF) oversees certain aspects of the crypto sector. EBA Guidelines. The European Banking Authority (EBA) has issued guidelines related to the risks of cryptocurrencies. These guidelines provide recommendations to financial institutions on how to deal with crypto-assets. European Securities and Markets Authority (ESMA). ESMA is an independent EU authority. That works to enhance investor protection and promote stable and orderly financial markets. While ESMA doesn’t regulate cryptocurrencies, it does issue guidelines and warnings related to crypto-assets and initial coin offerings (ICOs).
