Features of obtaining a crypto license in different countries?
Features of obtaining a crypto license for exchanges in different countries. How will cooperation with СryptoLicense.net help you get a work permit?
What do you need to know to get a crypto license?
Interest in the crypto industry is growing and snowballing, so many new crypto companies appear yearly. The countries’ governments are trying to learn how to regulate this industry: some ban it entirely, while others encourage companies to get a license and operate legally. СryptoLicense will become a reliable assistant if you want to simplify the process of obtaining a crypto license in the UK or other countries as much as possible. A team of professionals works here, who knows the peculiarities of getting a work permit in different jurisdictions, can conduct a comprehensive consultation, help prepare documents and do everything so that you receive the desired papers as quickly as possible.
In which countries can you get a license?
As mentioned, each country sets different rules for regulating the crypto industry. Today there are several jurisdictions where you can get a work permit, and we want to discuss the most popular ones.
Cryptocurrency License in the UK
The UK is a country that has managed to develop an excellent legal framework for regulating the crypto industry. So, every crypto company that wants to work here legally has to pay taxes.
You do not need to get a permit in the UK, but you must properly register and pay corporation tax and value-added tax.
The country’s government has created the Innovation Hub platform, where crypto companies can get legal support, but this is advisory.
Cryptocurrency license in Estonia
If your organization wants to operate legally in the EU, you must obtain permission in one of the jurisdictions. The easiest way to do this is in Estonia. The peculiarity of this country is that cryptocurrencies are regulated here not as e-money but as goods.
To obtain a crypto license in Estonia, your company must be registered in this jurisdiction, and the owners of the organization and shareholders must have an excellent reputation.
A crypto organization is required to pass a complete check and pay a fee of 3,300 euros. After that, the state authorities will have 60 days to decide. A crypto license is issued indefinitely, but you can lose it if your company is seen in fraud or money laundering.
Getting a permit for a cryptocurrency exchange in Poland
Getting a crypto license in Poland is a good idea for many companies that want to work legally in EU countries. This jurisdiction’s peculiarity is that it allows companies to make anonymous transactions in a limited amount.
To obtain a work permit in this jurisdiction, you must register a company, get a PESEL (tax number) and file an application with the regulatory authorities. Usually, obtaining a license here takes about 2 months if all documents are in order.
Licensing the activity of Cryptocurrency Exchange in Canada
Today no law obliges companies to obtain a crypto license in Canada. However, every organization that provides financial services (including crypto exchanges) must register with FinTRAC.
It is worth remembering that cryptocurrencies, like other electronic money, are equated here with securities. Each cryptocurrency company must pay taxes (the federal rate ranges from 13% to 33%, depending on the size of the company’s income).
Features of obtaining a license in Lithuania
Most crypto companies that want to operate legally in the EU prefer to obtain a crypto license in Lithuania. The country has simple requirements for applicants, and the speed of getting a permit is the highest here.
To obtain a work permit in this jurisdiction, your company must meet the following requirements:
- At least one owner and shareholder;
- Authorized capital 2500 euros;
- A security specialist should be on staff;
- No team member must have a criminal record in the past;
- Compliance with KYC policy.
Cryptocurrency License in Switzerland
The Swiss government is interested in the development of the crypto industry. Therefore it creates a perfect investment climate. Obtaining a crypto license in Switzerland has several significant advantages:
- Favorable taxation;
- High speed of decision-making;
- A considerable number of crypto enthusiasts;
- There is an opportunity to develop your business actively.
Practice shows that obtaining a work permit in this jurisdiction is much easier than in the US or EU.
Licensing the activity on Cryptocurrency exchange in Germany
At the moment, Germany needs a well-thought-out legislative framework for the regulation of cryptocurrencies. In 2021, a law will be passed requiring all crypto companies to obtain a crypto license in Germany. Coinbase was one of the first to take advantage of this opportunity.
Licensing the activity of cryptocurrency exchange in the USA
Among all the countries listed above, obtaining a crypto license in the USA is the most difficult. The US authorities have tried to develop a suitable legal framework that allows you to regulate the crypto industry. So, here you can use crypto assets to pay for goods and services, trading, and mining; some states even accept crypto to pay taxes. The main feature of obtaining a license in this jurisdiction is that in addition to federal laws, there are also laws issued by the states. So, if you plan to work in several states, you must obtain a work permit in the selected states. Remember that the rules for regulating cryptocurrencies are constantly changing, so you need to seek help from CryptoLicense specialists for up-to-date information.Cryptocurrency license in UAE
UAE is an important economic and cultural center in its region. If your company wants to expand the market as much as possible and work worldwide, it makes sense to get a crypto license in the UAE. The country’s government is interested in developing blockchain technologies, so obtaining a work permit for crypto companies is easy. Dubai is a significant crypto center in this country, so getting a DMCC crypto license makes sense. It is not difficult to get it, and your organization must meet the following requirements:- Compliance with KYC policy;
- The authorized capital of 50 thousand dirhams (almost 13,800 euros);
- Compliance with laws to prevent money laundering and terrorist financing.
Cryptocurrency license in Malta
Malta is not a standard offshore zone, as the tax rate here is high (up to 30% of profits). It is an incredibly popular jurisdiction not only for crypto exchanges but also for crypto casinos. In general, obtaining a Malta crypto license is relatively easy. The Maltese government requires that you set up a real business in the territory. So, you must open a physical office here and hire at least 3 employees. It is essential that the company has a sound business plan and that the owner has real experience in running similar companies. Here you will be offered to get one of the classes of licenses (4 in total); the choice depends on the specifics of your business. Our experts will carefully study your company’s activities and suggest what class of license you need.Features of obtaining a license in the Czech Republic
The Czech Republic was one of the first countries in the EU to start issuing crypto licenses. Here you are offered to obtain 4 types of permits:- Classic (exchange between crypto assets);
- Exchange of crypto for fiats assets;
- Traditional (combines the first two);
- Specialized (if the exchange combines e-wallets).
Main requirements for applicants
The requirements for an organization to obtain a crypto license depend highly on your chosen jurisdiction. However, there are a few points that are valid for all countries:
- The company must be registered in the chosen jurisdiction;
- Good business plan;
- Compliance with KYC policy;
- Large authorized capital;
- Payment of fees;
- No criminal record.
bad reputation. So, neither the owner nor the shareholders should have an account of legal trouble.
What is the KYC policy? It is an acronym that stands for Know Your Client. So, your company should not provide services to fraud or money laundering people. So, you must verify each user and request passport data and documents confirming the place of residence. In addition, public authorities should be able to access these data upon request.
What is a good business plan? A business plan is a document describing all the information about the company’s work. So, all the services that will be provided, financing (including investments), all costs, what software you use, and much more should be described here. The more viable your business plan is, the more likely you are to be able to get a work permit. We advise you to contact specialists to create this document.
The amount of the fee and the authorized capital depend on the jurisdiction.
Our services
СryptoLicense is a company that specializes in providing legal services. It offers the following services:
- Advice and assistance in choosing the proper jurisdiction;
- Checking how your organization complies with the requirements;
- Assistance in obtaining a legal address;
- Assistance in paperwork;
- Applying for a license.
Contact us
If you have questions about obtaining a crypto license, you can contact our specialists for help. You can do this by phone, email, or by visiting the Vilnius office. There is also a contact form on the site in the “Contacts” section, where you can ask questions.Conclusion
Obtaining a license is a critical moment for every crypto company. Each jurisdiction has its own rules and requirements, so it is best to seek the help of lawyers who specialize in this matter. It will minimize your participation in this process and help you get a work permit quickly and efficiently.FAQ
It is a work permit issued by government agencies in different countries. In addition, this is a document that confirms that you are ready to work legally, honestly, and openly.
Each jurisdiction sets its own rules for obtaining a crypto license. You can contact our specialists to simplify and speed up this process as much as possible. They will check whether your company is ready to obtain a license, help you complete the necessary documents, and assist in obtaining permission at all stages of cooperation.
The cost of obtaining a crypto license depends on your chosen jurisdiction. It includes our company’s services, fee amount, authorized capital, and other jurisdiction requirements. The exact cost can be obtained from our manager.
You need a crypto license if you want to avoid getting in trouble with the law but want to work honestly and openly. All companies that operate without permission are automatically recognized as fraudsters and blocked. In addition, having a permit simplifies the process of attracting new customers and investors.
Each jurisdiction develops different types of crypto licenses. So, if you want to sell cryptocurrencies, you should get a license for crypto exchanges. However, some jurisdictions, such as the Czech Republic, offer 4 types of permits for exchanges, so it makes sense to contact our specialists to suggest which license is proper for you, taking into account the characteristics of your company.
Yes, each country sets its own taxation rules for the crypto industry. Most jurisdictions ask you to pay 13 to 30% of the profit + VAT. However, some countries like Switzerland have several times lower taxes.