Crypto-sphere perspective is difficult to overestimate. Now this niche is progressing incredibly fast and, despite the obvious problems and shortcomings, experts see digital currencies and blockchain technologies as the future of the financial system. In order to keep up with global trends, to fully use this tool and to do it legally-approved, businessmen need specific permits. Crypto-license is a document giving full rights to carry out operations with virtual assets. There are two ways to obtain such a document.
The slow option is to establish a company, form an application for a permit yourself and wait for approval. A quick variant is to buy enterprise with active crypto-currency permit, which will make it possible to immediately start working.
Our specialists provide professional assistance in licensing crypto-businesses in hundreds of jurisdictions, particularly, in crypto-licensing in France. Our specialists have vast expertise and background that allow us to achieve the most effective and lucrative results for our clients.
Cryptolicense for business-activities
Crypto-license is useful for any company dealing with virtual currencies. There isn’t a single algorithm for getting a crypto-license in various jurisdictions, so complexity of procedure may vary. An essential step in crypto-licensing is selection of a suitable country and involvement of experienced specialized employees. Although some jurisdictions do not request this permit, it’s essential to guarantee abilities to exchange crypto-means for fiat money and seamless cooperation with spaces where permit is needed.
Licenses to deal with crypto-currencies are issued by local regulator of each country in which business-project is established. At the same time, the regulator is guided by both domestic legislation and global international rules. Cryptolicense gives rights to carry out business-activities on territory of only jurisdiction in which it was issued. Despite the restrictions on operating in only one country, there isn’t direct ban on accepting clients from other jurisdictions.
Licensed permit allows country to be sure that your firm isn’t laundering monetary means and is not engaged in fraud. It is the legal work and the availability of a licensed permit that inspires confidence in organization not from supervision bodies, but from future clients, workers and those with whom you plan to work.
Where can I get a crypto-license?
Crypto-exchange operators and crypto-wallets operators need to be separated from licensed traditional financial activities (payment institutions, electronic money institutions, etc.). However, licensed financial institutions can serve fiat payments of crypto-currency companies and their clients, creating an efficient mechanism for crypto-related fiat payments.
Digital certificates and blockchain industry is speedily progressing, creating new possibilities for innovative businesses. The European legislation and regulatory basis grants a wide range of possibilities for blockchain startups. It can be complicated to navigate and choose perfect option for your business-structure, but with our help you can make the right decision and get permission for crypto-activities in most beneficial country for you.
If you decide to acquire a firm, then most important criterion when choosing it is the location, because, at the moment, not all countries allow businessmen to operate with cryptocurrency, and, accordingly, you’ll not be able to get a permit in all jurisdictions.
List of EU territories where crypto-licenses are issued includes the following.
Lithuania – There’re two types of permits here – one gives permission for exchange-services, and second for storing virtual assets in crypto-wallets. Lithuania is loyal to crypto-business, and its advantage is low prices.
Estonia – Prices of country exceed Lithuanian ones, but are more budgetary compared to subsequent countries.
Portugal – Crypto-license has been issued there only since 2021, so it is still problematic to acquire a legal company here.
The UK is a space that possesses a positive opinion about cryptobusiness. Isle of Man, located on its territory, is one of leading crypto-centers worldwide.
Switzerland is one of first countries to give legal status to cryptocurrency.
Croatia – Crypto-activities space is extremely progressing locally. Now, there’re plenty of offers for those who want to engage in cryptobusiness.
Obtaining crypto-licenses issued in the EU provide unlimited opportunities to operate on Europe market.
Having collected the necessary set of documents, you can expand your business and offer services not in one, but in several EU-countries. Preparation of documentation is important, as delays in issuing a license can be significant.
Acquisition of shelf crypto-company
After choosing hurisdiction where you would like to have a company, it’s time to start looking for it. The best solution is to turn to our specialists. They will find you the best option and help you complete the deal. The scheme for acquiring a company looks like this.
Checking the selected object – studying financial performance in recent years, assessing the business and structure of the company, determining the strengths and weaknesses, and the availability of loans.
Verification of transactions by lawyers. Posting a deposit, provided the deal is clean.
Preparation of purchase/sale documents.
Certification of papers by a notary, apostille insertion.
Acquisition of a business-structure.
Transfer of ownership and monetary means for the firm. Purchase certification by a notary.
After the transaction is completed, the company’s securities are transferred for re-registration.
How will the changes of EU regulator affect investors?
On June 29, 2022, some amendments were made to the law that controls the fight against money laundering. New regulator provisions make crypto-exchange more transparent and safer. New normative points will be provided to reduce the possibility of deviating from sanctions imposed by the European Union. The amendments will also tighten the verification systems for applicants for investment programs.
According to the new rules, VASPs will need to do next-mentioned:
- obtaining permit that allowing you to operate in EU;
- protecting the wallets of investors in accordance with all norms;
- to be responsible for cases of losses by crypto-users;
- reporting to EU supervision bodies and investors.
Crypto-currency transfers won’t have special rules, but will be regulated according to general regulations of European Union on security of personal information. Crypto-providers now need to hold records of impact of their work on the environment and climate.
The Europe Banking Authority and the European Central Bank have official rights to conduct an audit of firms in case of uncertainty about the legality of its actions. The European Bank is also required to maintain public register of VASPs that don’t comply with new legislation.