Legal support for the crypto industry and blockchain
Cryptocurrencies are experiencing a real boom, the ICO fever is rapidly gaining momentum. Not a day goes by without news from the world of virtual money. The price of Bitcoin, Ethereum, and other coins has increased several times over the past year. Crypto instruments open up tremendous opportunities for market players. And with the advent of meta-universes in 2021, large companies from all over the world have shown interest in the industry.
Global regulation of cryptocurrencies
Skeptics call ICO nothing more than a financial pyramid, and the cryptocurrency itself is called a soap bubble. But be that as it may, blockchain technologies are increasingly penetrating into various areas of life. New words such as “mining”, “farm”, “token” are gradually entering the everyday life of ordinary users.
From a legal point of view, cryptocurrencies are in a so-called legal collapse. A few years ago, many states could not give a clear definition of digital currency. While some countries recognized it as a means of payment, others called it a currency of account, a commodity, investment, or virtual asset. The difficulty arises due to the nature of cryptocurrencies. On the one hand, it is a carrier of information (in particular, the first bitcoins contained encoded records of payment accounts in Cyprus banks). On the other hand, it is a popular financial instrument with affiliated infrastructure (i.e., virtual currency exchangers). Today, new ventures appear regularly and billions of dollars are circulating in this market.
In connection with the creation of crypto exchanges and other services related to digital currencies, there was a need for legal regulation. Therefore, more and more governments are enacting decrees to control this sector of the economy. Today, the leading states that have created a legal framework for crypto start-ups include Singapore, Gibraltar, Malta, Estonia, and Canada.
How to get started in the crypto market
Companies that plan to carry out activities related to cryptocurrencies need to register a legal entity and obtain a license in one of the jurisdictions where digital currencies have lawful status. Today, obtaining a crypto license in Estonia, Singapore, Gibraltar, and other jurisdictions is a quite complicated certification procedure that requires qualified legal support. To prevent speculation, many governments have set up elaborate procedures for screening applicants.
It is necessary to provide an impressive package of tools, including information about the founders and directors, the company’s financial plan for several years, and detailed internal policies. Also, the applicant must have business accounts in reputable banks, comply with the “know your client” policy (customer identification) and act in accordance with anti-money laundering legislation.
Licensing covers all activities related to crypto, including mining with the subsequent sale, trading activities in which cryptocurrencies are used as goods, the operation of payment services, cryptocurrency ATMs, and currency exchange platforms.
In addition, it is worth remembering that the profits received are subject to taxation in the country of registration of the firm. It is also essential to submit detailed financial statements to regulatory authorities and undergo an annual open audit. Mistakes in papers or ignoring the norms of the law may lead to the deprivation of a license and a ban on conducting cryptocurrency activities. Therefore, those who plan to work in the field of crypto, blockchain, and digital money must immediately find a competent lawyer, accountant, and auditor.
Fintech Harbor services
Digital technologies are developing rapidly and attracting more and more investors. But the law also transforms, so if you do not follow the changes, you can inadvertently violate it, which can lead to criminal liability. Therefore, before launching a startup in this area, entrepreneurs should receive comprehensive advice. Our company exclusively specializes in professional support for blockchain and fintech projects, as well as cryptocurrency services around the world. We deeply understand the specifics and prospects of this market and also monitor the legislative aspects.
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If you have any questions regarding our services (including their cost), please contact us in any way convenient for you. Prices for lawyers’ services are negotiated on an individual basis: the cost depends on the problem to be solved and the number of resources involved.
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