What is a cryptocurrency license?

Any business related to the exchange of fiat money for cryptocurrency or vice versa, cannot be legal without the presence of a special banking license. A cryptocurrency license is a document that has legal force, thanks to which a businessman receives permission to carry out transactions for the exchange of electronic currency.

Types of cryptocurrency license

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All cryptocurrency licenses are divided into 2 groups: Universal. Suitable for conducting financial transactions with any assets. Special. Issued in jurisdictions where transactions with electronic currency are officially legalized. With a cryptocurrency license, entrepreneurs can legally exchange various currencies, sell goods and services for cryptocurrency, as well as a variety of brokerage services.

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Procedure for obtaining a cryptocurrency license

Each jurisdiction has its own conditions for obtaining a cryptocurrency license. Some countries have loyal requirements, while others are tough. But most often the procedure for obtaining permission to conduct transactions with cryptocurrencies consists of several stages:

1. Registration of a company with a minimum authorized capital. The amount of capital in each country is different.

2. Provision of physical office with staff, accounting. The company must have an employee who monitors compliance with the legislation regarding the conduct of crypto business.

3.  Register a bank account. This may be a traditional or brokerage account, an account for bitcoin wallets.

4. Filling in the application, collecting documents. The list of necessary documentation is established by the jurisdiction. It usually includes identity documents, a certificate of residence, contact details, corporate papers and a business plan.

Where to obtain cryptocurrency license

It is most advantageous to issue a cryptocurrency license in such jurisdictions:

United States. The country offers clear regulation of cryptocurrency transactions and a wide optional. A license obtained in this jurisdiction allows the exchange of currencies, money transfers, sales. In America, it is possible to obtain a local or national license, which can be used in other countries. The United States has the largest number of Bitcoin ATMs in the world. But it should be borne in mind that income from transactions with cryptocurrency is taxed on capital gains. Some tokens are considered securities and are subject to regulation.

Estonia. This is the most convenient jurisdiction with the most loyal attitude to transactions with cryptocurrencies. In Estonia, electronic currency is widely used in banks and at home. On the territory of the country, you can get a variety of licenses to engage in crypto business, which apply to any transactions with electronic currency.