Сrypto license
Obtaining a crypto broker license is a must to legally conduct licensed crypto exchanges and other activities. Once you obtain such a license in one country, you can provide crypto activities in various crypto markets. This means you could work with clients from different countries, legally promote your projects, and gain a lot of other benefits. Choosing the right crypto license provider is crucial to ensure that the process is handled efficiently and in full compliance with the relevant regulations.
What is a crypto license?
A crypto license is an official authorization from a government regulator that allows a company to legally operate with cryptocurrencies in a specific jurisdiction.
Crypto licenses open up many opportunities and create advantages for companies. That is, companies are authorized to conduct operations ranging from cryptocurrency exchange to virtual asset transfers.
Obtaining a crypto license allows you to legally:
- exchange crypto, virtual, and fiat currency;
- store currency on behalf of your clients;
- transfer virtual currency;
- promote your projects;
- keep accounts related to crypto assets (custody services);
- and more.
A cryptocurrency license confirms a high level of trust, regulatory compliance, and security in the company’s operations. You will be able to do business in crypto-friendly countries, such as the UK, Lithuania, Estonia, Canada, Poland, and many others.
Сrypto license in popular jurisdictions
Crypto authorization in the EU under MiCA
The European crypto license allows you to operate lawfully in the EU. It enhances transparency in the crypto business. It also builds confidence among consumers, partners, and state authorities.
In 2025 new crypto laws, MiCA (Markets in Crypto-Assets), will come into force, radically changing the rules of the cryptocurrency industry. This rule will be compulsory for all European Union countries, establishing a common approach to regulating crypto-assets.
Among the entities impacted by the new regulations are:
- crypto exchanges
- ICO issuers
- wallet providers
- those that hold crypto assets on their customers’ behalf, such as security token issuers and custodial wallets.
Expedited Process: 3 to 5 days (will cost ~150 EUR more)
Licensing: within 2 months
Leverage our expertise in getting a crypto license
You will acquire the best option for your cryptocurrency business by picking Fintech Harbor to receive a license. Our experts will assist you in selecting the most advantageous and convenient country to register your company in. Fintech Harbor lawyers are aware of the unique requirements for acquiring a crypto brokerage license in various jurisdictions. With us, you’ll get an affordable crypto license that lets you legally do cryptocurrency-related business, including exchanging and storing them. We pride ourselves on being a trusted crypto license service, ensuring that all aspects of the licensing process are handled with expertise and care.
Benefits of obtaining a crypto license
The legitimacy of business
The most essential reason to acquire a crypto license is to prevent legal problems. Crypto providers operate in a highly regulated market that carries significant penalties for violation. A crypto license ensures conformity with all applicable laws and regulations, often secured through crypto license services.
Trust and reliability
The crypto license also helps the business to come out as a dependable and trustworthy institution from the client’s perspective. A potential client always prefers a licensed provider over an unlicensed one. Cooperation with an authorized provider is more reliable and less risky. The crypto license serves as a tool to attract new customers, facilitated by **crypto license services**.
Relations with banks
Many banks refuse to collaborate with CASPs due to the high risk of crypto activities. Cryptocurrency authorization makes it easier to get access to traditional banking services.
Business expansion
Another advantage of acquiring a crypto license is the opportunity to do business globally. Having a crypto license from a reliable regulatory body may simplify licensing procedures in other jurisdictions, often streamlined through crypto license services.
Investor confidence
The crypto license serves as a green light to investors that the entity complies with regulatory requirements. In this aspect, a crypto license is more than just a legal need. It is a strategic move that has the potential to increase investor confidence.
Problems with getting a crypto license
Changing Rules
Expensive cost
Tough Requirements
Financial Monitoring and Checks
Security Is a Must
Crypto License Cost
Contact us, and we will advise you on how to get a crypto license in a reputable jurisdiction.
The process of obtaining a crypto license
To obtain a cryptocurrency exchange license or cryptocurrency broker license, one must first select a jurisdiction and then register a legal entity in that country. After that, you need to collect a package of documents that includes information about the non-conviction of the director and shareholders, biographies of responsible persons, a detailed description of the activities, and the company’s website.
For those seeking fast crypto license registration, it is also necessary to appoint a compliance officer and a responsible representative for submitting documents to government agencies. After that, you need to pay a state fee and wait for a cryptocurrency license.
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Types of crypto license
The classification of crypto licenses varies across jurisdictions. A wide range of licensed crypto activities are outlined in the MiCA (Markets in Crypto-assets) Regulation. It is an EU legislative act which implements unified crypto regulation in EU member states. It will take effect in 2024-2025. Mica provides the following types of licensed crypto activities:
Custody and administration
A crypto custodian is the keeper of the private keys that ensure your crypto assets are hard to access. Providers of this service must keep records and register any movements of cryptocurrency. They have to strictly separate their funds from clients’ funds. Crypto custodians do not store the assets themselves. Instead, they keep a cryptographic private key which gives access to your assets.
Trading platform operation
Crypto-asset exchange
Order execution
Crypto-Asset Placing
Transfer services
Order reception and transmission
Such CASPs receive orders from clients for cryptocurrency buy or sale. However, they do not directly take part in the transaction. They transfer such orders to a third party. Usually, CASPs place such orders on trading platforms. The main purpose of such providers is to find your order a suitable match from other user’s orders. Once a suitable match is found, the service facilitates the transaction. This way, you don’t have to personally find someone to trade with. The service does the matchmaking for you.
Crypto-asset advice
Providing advice on cryptocurrency assets is a type of investment advice. It can be provided both at the request of the client and at the initiative of the CASP. Providing personal recommendations involves direct communication with the client. Such recommendations must follow the client’s personal circumstances.
Portfolio management
Portfolio management is the process of selecting and managing a group of investments. In crypto, this means selecting different tokens and coins. The portfolio can include one or more cryptocurrencies. The main goal is to meet specific financial results and mitigate risks. The portfolio management of crypto assets is carried out within the limits established by the client. The expected return of the portfolio is a typical financial aim. The provider must apply an individual approach to each client.
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What services does a licensed crypto broker provide?
What licensing rules and compliance laws apply to a crypto license?
The requirements of MiCA, which will take effect in 2025, mandate that all companies holding a VASP license must reapply for a new MiCA CASP license. In most jurisdictions, a separate regulator will oversee this process. While VASPs will have a transition period (depending on the region), the limited timeframe makes early preparation essential. This includes developing the necessary policies, opening an office, and building a local team of senior AML professionals to ensure a smooth and successful application process.
To provide products and services in all EU countries, it is necessary to be authorized and listed on the ESMA register. This allows CASPs and issuers to operate within the EU. CASPs are also required to understand and comply with regulations when performing the following functions:
- Providing custody and administration of cryptoassets on behalf of clients.
- Managing trading platforms for cryptoassets.
- Exchanging crypto assets for other crypto assets or cash.
In addition, crypto asset issuers must publish technical documentation detailing the economic and technological characteristics of each asset.
To summarize, here are the main key points of Crypto Compliance in 2025:
- Capitalization:
- Class 1: €50,000 for advisory, order execution, or crypto-asset placement.
- Class 2: €125,000 for crypto-to-fiat/crypto exchange or trading platform operation.
- Class 3: €150,000 for custody and administration services.
- AML Compliance & Policies: Implementation of internal controls, risk management, confidentiality, and safeguarding funds is mandatory.
- Local Presence: Establishing a physical office, EU-based management, and senior AML specialists (e.g., CCO, CRO, MLRO).
- Early preparation (e.g., updating policies, setting up a local office, and increasing capital) is crucial due to tight transition timelines.
- An EU credit institution bank account is required (EMI accounts are not acceptable).
MiCA introduces stricter rules but also opens up new opportunities for businesses. The focus is on data protection, risk management, and increased transparency. Planning and adhering to the standards promptly will help your business maintain its reputation and grow successfully in the new environment.
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Requirements to combat money laundering broker provide?
Cryptocurrency markets have expanded rapidly in recent years. The amount of money flowing through these platforms has also grown. In response, regulatory demands from policymakers and financial institutions have intensified. Governments around the world are grappling with ways to control the industry of crypto licenses.
They use different methods from imposing restrictions to outright bans. The problem is that the progress of crypto assets can become difficult to contain. Global and national regulators are announcing new rules to address these issues.
To meet international standards, cryptocurrency companies and exchanges are currently under pressure. They need to install comprehensive AML screening procedures to claim crypto licenses. The anonymous nature of cryptocurrency transactions has made them attractive for money laundering.
By allowing unverified transactions, cryptocurrency companies not only endanger their reputations. They also face the possibility of fines, bans and other serious consequences. AML compliance in the cryptocurrency industry is crucial for a variety of reasons. A risk-based approach, starting with a thorough risk assessment, remains the focus. Regular risk reassessments are necessary, especially given the rapid pace of regulatory change.
There is the risk of obfuscation of money and other money laundering typologies. To conceal their activities, criminals use a variety of strategies, including off-chain transactions. Compliance issues also arise from a personnel perspective. Thus, small cryptocurrency companies lack the structure and resources available to larger enterprises. Seeking professional crypto license consultancy can help these companies navigate these complexities more effectively.
Companies in the cryptocurrency industry are on the verge of a tipping point as governments around the world begin outlining their regulatory framework for cryptocurrencies. The firms should stay on top of the current state of AML compliance for crypto licenses. And expect it to evolve in the coming months.
The classification of crypto licenses varies across jurisdictions. A wide range of licensed crypto activities are outlined in the MiCA (Markets in Crypto-assets) Regulation. It is an EU legislative act which implements unified crypto regulation in EU member states. It will take effect in 2024-2025. Mica provides the following types of licensed crypto activities:
FAQ
How much does the crypto exchange license cost
Since the crypto exchange license cost varies due to many factors, it is impossible to give you a rough calculation of the fees. It could cost approximately from a few thousand euros to hundreds of thousands to obtain a license for crypto exchange.
Is cryptocurrency legal in Europe?
Cryptocurrencies are legal across the European Union with individual member-state regulations.
How to get a license for cryptocurrency?
To receive a crypto license, you must complete the following steps:
- Learn about local regulation and licensing categories.
- Create a detailed business strategy and the necessary paperwork.
- Submit your application to the appropriate regulatory body.
- Maintain strict AML/KYC, security, and financial controls.
- Regulators will evaluate your application.
- You can lawfully operate after you have been approved.
How much does it cost to obtain a crypto license?
The cost of obtaining a crypto license depends on the jurisdiction and the types of activities that the company plans to carry out; an individual offer is available upon request.
How long does it take to obtain a crypto license?
The timing of obtaining a cryptocurrency license also depends on the jurisdiction; it usually takes more time than just registering a legal entity. For example, on average, obtaining a crypto license in Estonia takes 2 to 6 months, including preparing and collecting the necessary documents.
What documents are needed to apply for a crypto license?
For example, in order to obtain an Estonian crypto license, you need to present a full package of documents on the registration of a legal entity. You also need a local director with a crystal clear business reputation. You will need to comply with anti-money laundering procedures and provide proof of the origin of the company’s funds and its owners. You need to carefully work out the privacy policy, terms of use of services, and protection of personal data. All this information should be publicly available on the company’s website.
How do I become a crypto broker?
To become a crypto broker, it is required to establish a company and obtain the required license. To obtain a license, the company should fit with paid-up capital requirements, professional staff, and AML & CFT policies. Moreover, the owner of the crypto broker should have a good reputation, a clear criminal record, and proof of funds according to the laws.
Which jurisdiction is the most favourable for the crypto business?
Most Crypto-Friendly Jurisdictions in 2023
- Singapore
- Poland
- Estonia
- Canada
- Gibraltar
Are there any taxes for cryptocurrency companies?
The acquisition of cryptocurrency is not taxable. The fact of acquiring cryptocurrency does not confirm the fact of making a profit. In case the company receives income from the services that they provide the taxation varies from country to country and other factors.
What is the validity period of a cryptocurrency license in Europe?
As a common rule, most countries allow licenses for an indefinite period of time.
Which agency regulates cryptocurrency companies in Europe?
National Authorities. Cryptocurrency regulations are often enforced at the national level by financial regulatory bodies or central banks. For example, in Germany, the Federal Financial Supervisory Authority (BaFin) regulates crypto-related activities. In France, the Autorité des Marchés Financiers (AMF) oversees certain aspects of the crypto sector.
EBA Guidelines. The European Banking Authority (EBA) has issued guidelines related to the risks of cryptocurrencies. These guidelines provide recommendations to financial institutions on how to deal with crypto-assets.
European Securities and Markets Authority (ESMA). ESMA is an independent EU authority. That works to enhance investor protection and promote stable and orderly financial markets. While ESMA doesn’t regulate cryptocurrencies, it does issue guidelines and warnings related to crypto-assets and initial coin offerings (ICOs).
