Cryptocurrency exchange license

Carrying out activities related to the exchange of cryptocurrency is a licensed activity. A company that wants to store or trade digital assets should not simply get cryptocurrency exchange license by a national regulator, but should also meet the requirements of traditional capital markets.

How to get cryptocurrency exchange license

To conclude a contract, individuals must provide a copy of their identity document and the taxpayer identification number. The individual entrepreneur shall attach to the contract copies of the document certifying his identity and the certificate of state registration. The legal entity shall be provided with a copy of the certificate of state registration, information about the location, managers, as well as information specified in the founding documents. It is also necessary to specify the contact details through which the exchange representatives can contact the client.

Send Money Instantly

Purchase Protection

Innovative security

Where to obtain cryptocurrency exchange license

Decentralized and hybrid exchanges target more experienced users who only work with their wallets and want full control over their digital assets. At the same time, they are sacrificing other advantages offered by centralized exchanges. It is easy experience of interaction with the user, large volume of trading, high liquidity

Procedure for obtaining cryptocurrency exchange license

The companies will have to form a real office with employees, have significant capital for the country, keep regular financial statements for the financial police and the Estonian regulator. They will also implement strict KYC/AML policies, with KYC/AML officer required to be present at the office (as long as this is not a mandatory requirement and a specialist can be recruited externally, but in the future companies will be obliged to involve an officer on a permanent basis) and report regularly to the appropriate authorities on all of the company’s clients. This will require additional costs for the compliance department, as well as for the implementation (with a large flow of clients) of KYC/AML automated systems.

Requirements and conditions of cryptocurrency exchange license

The existence of a statutory fund in the amount of not less than 30 thousand basic estimated values (about 700 thousand US dollars), of which 20 thousand (about 467 thousand US dollars) are reserved on a separate account in the commercial bank of particular country. Existence of a functioning electronic system of crypto-exchange trading, placed on servers in the interior of the country; Existence of rules of crypto-exchange trading (the procedure of admission to trading, the amount of payment, registration of transactions and other). Five-year retention of transaction information, client identification and relationship records, including business correspondence.

Taxation of cryptocurrency exchange license

Transactions related to the circulation of crypto-assets are not subject to taxation. All income received from these transactions are excluded from the taxable base on taxes and other obligatory payments. Transactions in cryptocurrency carried out by licensed persons are exempt from foreign exchange regulations. Also, the legislation on securities, exchanges and exchange activities does not apply to activities on the turnover of crypto-assets and crypto-exchanges.