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Crypto license in Denmark

Where does Denmark stand in today’s world of crypto? As of today, this European destination is rapidly strengthening its reputation as a premier jurisdiction for international business for several reasons. Obtaining the Crypto-Asset Service Provider (CASP) license in Denmark means operating within a unified, fair, and transparent regulatory environment, which is particularly important in light of the recent implementation of Markets in Crypto-Assets (MiCA) across the EU.

Whether you’re looking to launch an innovative platform or scale your existing company, the Danish crypto framework allows you to seamlessly get your operations authorized and start serving your clients across the entire EU with a single CASP license. Read further to learn more about the Danish regulatory ecosystem, the licensing step-by-step roadmap, compliance criteria, associated fees, and more.

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Overview of Crypto Regulation in Denmark

Starting in late 2024, the Danish oversight in the crypto sector has been transforming into a highly structured regulation. In light of the recent implementation of the Markets in Crypto-Assets (MiCA) framework across all EU member states, the requirements for crypto businesses in Denmark have become significantly more rigorous. In particular, the companies now operate in accordance with robust Anti-Money Laundering (AML) laws, strict local substance obligations, security and client asset protection policies, and more.

Besides the external, EU-wide regulation, the Danish Financial Supervisory Authority is Denmark’s regulator governing digital asset activities in the country. In addition to MiCA’s robust compliance criteria, the Danish regulator also establishes high standards for internal controls and senior management at the applicant’s business. Therefore, in order to qualify for the cryptocurrency license in Denmark, your business must adhere to the current requirements established by both MiCA and the Danish national authorities.

What Services Can You Provide Under the Danish Crypto License?

When it comes to launching your project in Denmark, it’s important to know that the range of services you can offer depends on the particular class of your licensing. Namely, there are the classes of activities your company can perform upon successful authorization in Denmark:

Class 1:

Client transactions;
Facilitating orders for others;
Providing consultation on crypto assets;
Oversight of the clients’ crypto orders;
Crypto-asset portfolio management;
Positioning of crypto assets;
Client-focused crypto-asset transfers.

Class 2:

Class 3:

Requirements for Obtaining the Crypto License in Denmark

Before you anchor your crypto business in Denmark and reach your international clients within the European Union, it’s mandatory to ensure your company’s full ongoing compliance with the latest regulatory requirements in the jurisdiction. The core standards include the minimum share capital, local presence, accurate documentation, and internal controls:

Minimum Share Capital

The minimum capital requirements in Denmark vary depending on the service category your business belongs to:

Local Substance Requirements

Incorporation of a local legal entity;
A physical office in Norway is mandatory;
All directors and beneficial owners must confirm their expertise in the industry;
At least one director must be a local resident;
Appointment of a dedicated local AML officer is required.

Required Documentation

Resumes of all directors and beneficiaries;
Documents regarding relations with subsidiaries;
Compliance documentation;
AML and Know Your Customer (KYC) policies;
Company’s governance structure description;
Documents related to IT systems and security measures.

Key Internal Policies

Business continuity plan;
Conflict of interest prevention policy;
Internal control policy;
Pricing policy;
Client crypto-asset protection;
AML policy;
Fund segregation;
Outsourcing management;
Insurance policy;
ICT security;
Custodial services storage and administration (only for Class 2 and 3 CASPs);
Client complaints handling.

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Breakdown of the Entire Licensing Process

What does the licensing process in Denmark look like? The CASP authorization here follows a multi-step process that aims to ensure your full adherence to the MiCA and national Danish regulations. The standard procedure often takes under 5 months. However, the timeline can vary depending on the authority’s review times or requests for additional documentation. Here is your step-by-step guide to securing your MiCA license in Denmark:

1. Consultation and compliance assessment

The journey begins with a thorough analysis of your enterprise’s corporate structure and compliance needs. Our experts will evaluate specific MiCA requirements applicable to your selected business model and help you comply with them. We’ll also audit your current documentation and assist you in creating the right launch and growth strategy for your project in this dynamic jurisdiction.

2. Preparation of documents and application

Next comes drafting the mandatory internal policies, including the AML and ICT security protocols, client asset protection guidelines, risk management strategy, and detailed documentation for your local key hires. With our professional support, this stage typically takes under 3 months. Once this step is completed and all your documentation is complete and accurate, you can submit your CASP application for review.

3. Application processing and license issuance

Upon the successful completion of the documentation stage, the regulatory authority will carefully examine your application as well as all supporting paperwork before finalizing the decision. What matters most during this phase is proactively engaging in communication with the regulator, as they may request more information related to your business model or key management. The more efficiently you respond to the authority at the revision stage, the sooner the final approval of your application will be. Once your license is approved and issued, your business instantly becomes legally authorized to operate and expand crypto services across the entire EU market.

What You’ll Receive With Your Crypto Exchange License in Denmark

Once your application is approved and the license is issued, here is what you will receive besides the official permit for performing crypto operations:

Full compliance with MiCA and EU regulations;
Comprehensive legal and compliance documentation;
Assistance with AML and KYC compliance;
Authorization as a Crypto-Asset Service Provider (CASP);
Regulatory guidance through the entire authorization process.

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Nick Dakhovskyi

Senior Lawyer

Anastasia Kutniakova

Lawyer

Overview of the Costs and Expenses Associated with Crypto Licensing in Denmark

The financial side of obtaining your CASP (VASP) license in Denmark is an essential part of planning your business launch. What’s important to know about your licensing-associated budget is that it consists of two main parts: the first-year setup fees and the following license maintenance costs. Here is the overview of the major fees associated with securing a crypto license in Denmark under MiCA:

First-Year and Company Setup

Initial consultation and compliance assessment;
CASP application;
Compliance documentation;
Company registration in Norway;
Representation and follow-up work;
Administrative fees;
Potential security deposit;
Local AML officer onboarding;
Bank account opening assistance;
EMI account setup;
Office space setup;
Liquidity provider account opening.

Recurring Costs

Besides the first-year expenses, the crypto licensing in Denmark includes the recurring fees:

While navigating all the financial hurdles on your own can be truly exhausting, you aren’t meant to figure out your license expenses alone. Our team of experienced consultants is here to help you calculate the business setup and compliance costs and provide ongoing assistance with every step of your authorization process.

How Can Fintech Harbor Consulting Help You Secure the Cryptocurrency Exchange License in Denmark?

Figuring out each step of the transition to MiCA compliance and CASP licensing can be demanding and even overwhelming if you approach it without professional support and a clear strategy. That’s why our expert team of consultants at Fintech Harbor Consulting is ready to provide you with end-to-end legal and operational assistance. Our service covers all stages of your licensing process, including the post-approval support with license maintenance.

What does our consultancy mean in practice, as you begin your authorization journey in Denmark? We’ll guide you through the initial business structure analysis, help you choose the right corporate model, and build a proactive growth strategy. Then, we’ll help you draft the full suite of mandatory internal policies and prepare all the required documentation. What about AML protocols? ICT security guidelines? Filing the application? Ensuring local presence? We’ve got you covered and are ready to handle the complex compliance burdens on your behalf.

Once the regulator is processing your application, we’ll help you maintain effective communication with the authority to speed up the process and avoid any delays along the way. Beyond simply assembling your application, we also offer a full range of assistance with setting up physical office space in Denmark, opening corporate bank accounts, and ensuring your long-term compliance with MiCA even after you officially start your operations.

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Frequently Asked Questions

Who regulates crypto companies in Denmark?

The Danish Financial Supervisory Authority (DFSA) is the primary regulator in Denmark’s crypto sector. This authority handles everything, from licensing to market compliance and ongoing supervision in the industry. It is the DFSA whose regulatory requirements your company must comply with while registering a crypto business here. Besides, on the EU-wide level, all crypto projects must adhere to the latest MiCA standards, including consumer protection, AML protocols, operational integrity, etc.

What activities require registration as a crypto business in Denmark?

Within the current MiCA framework in the EU, any commercial entity providing the range of services listed below must be authorized and hold proper crypto licensing in Denmark:

Class 1:
- Client transactions;
- Facilitating orders for others;
- Providing consultation on crypto assets;
- Overseeing the clients’ crypto orders;
- Crypto-asset portfolio management;
- Positioning of crypto assets;
- Client-focused crypto-asset transfers.
Class 2:
- All services permitted for Class 1;
- Custody and crypto asset administration on behalf of clients;
- Exchange of crypto assets against funds;
- Exchange of crypto assets against other crypto assets.
Class 3:
- All services permitted for Classes 1 and 2;
- Trading platforms for crypto-asset services.

In order to determine the right category of services for your company, make sure to contact our consultants.

What documents are needed to register a crypto company in Denmark?

Preparing the complete and accurate documentation is a critical part of successful crypto authorization in Denmark. Below is the overview of the key documents needed for the application:

Required Documentation

Resumes of all directors and beneficiaries;
Documents on relations with subsidiaries;
Compliance documentation;
Anti-Money Laundering (AML) and Know Your Customer (KYC) policies;
Company’s governance structure description;
Documents related to IT systems and security measures.

Key Internal Policies

Business growth plan;
Conflict of interest prevention policy;
Internal control policy;
Pricing policy;
Client crypto-asset protection;
AML policy;
Fund segregation;
Outsourcing management;
Insurance policy;
ICT security;
Custodial services, storage, and administration (only for Class 2 and 3 CASPs);
Client complaints handling.

How long does it take to obtain a crypto license in Denmark?

The typical timeframe for securing your Danish crypto license is around 5 months, given that all your paperwork is complete and accurate, and no unexpected delays occur during the revision stage. Yet, keep in mind that the exact duration depends heavily on the complexity of your business structure and the fulfillment of the compliance requirements. For the smoothest and most efficient licensing journey, it’s highly recommended to cooperate with consultants who will equip you for each step of the authorization process.

Does Denmark follow EU crypto regulations like MiCA?

Yes, as a member state of the European Union, Denmark fully implements the current MiCA regulation. What does this mean for you as you look forward to bringing your project to life in this dynamic jurisdiction? Obtaining the Danish CASP license grants you full EU passporting rights, so that you can legally offer your services across all EU member states under a single license and, therefore, scale seamlessly.

What are the costs associated with getting a crypto license in Denmark?

When it comes to planning your budget for the CASP licensing in Denmark, keep in mind that the total fees contain both the one-time and recurring fees. The first category refers to your company’s setup in the jurisdiction in the first year of your operations. Meanwhile, the recurring payments are related to maintaining your license in the following years. Below is the breakdown of the core fees associated with obtaining your Denmark crypto license:

First-Year and Company Setup

Initial consultation and compliance assessment;
CASP application;
Compliance documentation;
Company registration in Denmark;
Representation and follow-up work;
Administrative fees;
Potential security deposit;
Local AML officer onboarding;
Bank account opening assistance;
EMI account setup;
Office space setup;
Liquidity provider account opening.

Recurring Costs

Ongoing local substance costs, such as office rent and staff salaries;
Annual license renewal.

For the price list tailored specifically to your project, make sure to contact our consultants. We’ll help you identify the main goals and needs of your project and calculate the expenses associated with securing your Danish licensing efficiently.