America

Licensing of Crypto Field Activities

IT branch is considered one of the softest of its kind with highly regulated conditions for obtaining a license for startups in the blockchain technology industry. In other words, the so-called crypto-license is an official permission to conduct a regulated cryptocurrency business. Many new cryptocurrency platforms and marketplaces are created every week, and a significant part of them have received their permission. Thus, option to choose crypto exchange license for sale is one of the easiest way to start your commercial project.

For activities in the field of crypto-services, in accordance with the Law on the Prevention of Money Laundering and the Financing of Terrorism, a special document is required, as already indicated. Two different services fall into this category: to operate as a virtual currency wallet service provider and as a virtual currency exchanger.

  • Management of crypto wallets and custodial services

The first category of services includes the generation and storage of encrypted client keys.

  • Crypto exchange.

The second category of services that require a crypto license is the offer of services for the exchange of cryptocurrencies for fiat money or vice versa, or cryptocurrencies for other cryptocurrencies.

Applying for Crypto Exchange License

A member of the board of the company can apply for a cryptocurrency license. An application for a license can be submitted electronically if you have a resident card, when you visit a notary, or you can issue a power of attorney for a representative. The fee must be paid to the Ministry of Finance. The issue of issuing a license is decided by the regulator within a couple of months of working days after the application is submitted.

To get crypto license for exchange activities, you must provide the following information:

  • contact details of the entrepreneur (phone number, email address and postal address), CV;
  • the address of the place where it is proposed to provide services, including the address of the web page;
  • the name and contact details of the person responsible for the offer;
  • name, personal identification code (in its absence, date of birth), place of birth and residential address of the beneficial owner of the company;
  • procedural rules and internal control rules;
  • name, personal identification code (in its absence, date of birth), place of birth, citizenship, residential address, position and contact details of the person responsible for the application of international financial sanctions;
  • if the entrepreneur, board member, procurist, beneficial owner or owner is a citizen of a foreign country or if the entrepreneur is a foreign person offering services, then a certificate from the register of punishments of his country of origin or an equivalent document issued by a judicial or administrative authority, which confirms the absence of punishment for the crime against state power, a crime in the field of money laundering or another intentionally committed crime, from the date of issue of which more than three months have not passed and which is certified by a notary or other equivalent procedure and legalized or approved by a certificate replacing legalization (apostille), unless otherwise derived from an international treaty.

The novelty of cryptocurrencies leads to the fact that the usual legal categories and definitions are not applicable. That is why it is so important for startups that plan to deal with digital currencies to get qualified legal advice in order to determine and form the correct and legal direction of activity.

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