Сrypto license

Cryptocurrencies have already become a full-fledged alternative to fiat money. Crypto business has appeared relatively recently.
Most countries have already introduced changes to their legislation to regulate this type of economic activity. In order to legally engage in the crypto business, you must obtain an appropriate cryptocurrency license.
Services — Crypto license

What is a crypto license?

Crypto license entitles the company to carry out operations with cryptocurrencies, such as exchanging and transferring virtual assets. Not all states have yet developed an adequate licensing mechanism for activities related to crypto finance.
Therefore, it is best to obtain a cryptocurrency exchange license from crypto-friendly countries, for example, the UK, Lithuania, Estonia, Canada, Poland or Malta.

Why should you choose fintecharbor.com to obtain a crypto license?

Licensed crypto exchanges can legally provide services for storing cryptocurrencies and exchanging them for conventional currencies. A regular banking license will not work for crypto exchange functions.
Fintecharbor experts know the peculiarities of receiving crypto broker licenses in various jurisdictions and will help you choose the most suitable country for registering your business.
Services — Crypto license

The process of obtaining a crypto license

To obtain a cryptocurrency exchange 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.
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.
Сrypto
General information
Estonia
The crypto license in Estonia is a special permit to perform commerce associated with digital assets. An authorized legal document is required because this sort of action is controlled and regularized by the FIU (Estonian Financial Intelligence Unit).
Poland
Polish version of the authorization to conduct activities with virtual assets is not a license (in its usual sense), it is necessary to make a point on this. Polish crypto-authorization is an entry in the state registry of companies, that doing a virtual-related business,, what is maintained by the Chamber of Tax Administration.
Gibraltar
The Gibraltar crypto license is a special permit to conduct activities in the field of virtual financial services, digital money wallet management and cryptocurrency exchange. The digital financial sector is legal. The Financial Services Commission (GFSC) regulates the work of firms in the industry.
Lithuania
Activity related to the virtual currency services in the Republic of Lithuania does not require licensing, and therefore the term “cryptolicense” in the Lithuanian legal field is conditional. There are 2 types of “cryptolicense”: Virtual currency exchange operator and Virtual currency depository wallet operator.
Services
Estonia

– Exchange of virtual currency for fiat currency;
– Fiat to virtual currency exchange;
– Exchange of virtual currency for another
virtual currency;
– Custody of currency on behalf of your clients;
– Transfer of virtual currency between wallets;
– Storage of fiat currency on behalf of the client
for a certain period of time for subsequent
exchange for cryptocurrency*.

Poland
  1. exchange between virtual currencies and fiat money (for example: EUR to BTC or BTC to USD);
  2. exchange between virtual currencies (for example BTC to LTC);
  3. brokering in exchange;
  4. keeping accounts related with crypto assets (custody services).
Gibraltar
  1. exchange between virtual assets and fiat currencies;
  2. exchange between one or more forms of virtual assets;
  3. transfer of virtual assets;
  4. safekeeping and/or administration of virtual assets.
Lithuania
  1. exchanging cryptocurrency for fiat currency;
  2. exchange of fiat currency for cryptocurrency;
  3. exchange of one type of cryptocurrency for another;
  4. keeping accounts related with crypto assets (custody services).
Requirements for UBO and directors
Estonia

Must demonstrate the appropriate education of officials, their experience in this field of business, as well as the absence of a criminal record.
Also, local office is required.Local director and local AML officer in company structure is required.

Poland
A local AML officer is not required. Director can do AML functions, but he should have special experience in virtual currency & AML activity and proof it with certificates, etc.
Gibraltar
At least one director who must have an impeccable reputation and actively participate in the commercial activities of the company (no residence requirements).
Lithuania

Like in Poland Company owners and directors are required to have no convictions for violations of the law: against state authorities, justice, economic turnover, trading in securities and money; intentional financial crimes.
Also, local office and management are required. A local AML officer is required for LT company.

Authorized capital
Estonia
Cannot be less than 250,000 euros to offer virtual currency transfer services and 100,000 euros to offer virtual currency exchange services. In this case, the entire amount must be paid in cash.
Poland
5000 PLN (approx. 1100 EUR) – 100% of the amount to be paid at the time of registration.
Gibraltar
Minimum share capital (paid-up) – 100 GBP (approx. 119 EUR) but it’s ultimately determined by the complexity of the crypto business model.
Lithuania
Not less than 125 000 EUR
Taxes
Estonia
Income tax rate – 20%. 0% corporate tax if the profits are not distributed. Estonia has approximately 60 double tax treaties.
Poland
Virtual currencies in Poland are subject to corporate tax (capital gains tax) at a rate of 19%, although taxation is possible at a preferential rate of 15%. Income tax on exchanging virtual currency for virtual or fiat currency ranges from 17% to 32% in accordance with a progressive tax scale.
Gibraltar
Income derived by virtual currency service providers is taxed as per the usual corporate taxation rules. The corporate income tax rate in Gibraltar is 12.5%.
Lithuania
Virtual currency exchange services are not subject to VAT. The cryptocurrency company’s profits are taxed at a rate of 15%. A micro company with less than ten employees and less than 300,000 euros of gross annual income may be taxed at a reduced corporate tax rate of 0-5%. Income tax (WHT) 15% is levied on distributed profits (dividends paid).
Time
Estonia
For those enterpreneur that already have a resident legal entity and a bank account, the period for receiving will be 120 days from the day of filling up the Estonia cryptocurrency license register.
Poland
The process of opening a cryptolicense in Poland takes approx. 1.5 months.
Gibraltar
Typically, a license is issued within 9 to 12 months.
Lithuania
Typically, he process of opening a cryptolicense takes 1.5 month

FAQ

The cost of obtaining a cryptocurrency license depends on the jurisdiction and the types of activities that the company plans to carry out; an individual offer is available upon request.
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.
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.

Reviews

I want to thank the company’s lawyers for their qualified assistance in registering cryptocurrency licenses in Estonia. The service was above our expectations, and I highly recommend it.
We contacted Fintecharbor on obtaining a cryptocurrency license and received comprehensive information. With this assistance, we were able to prepare a package of documents in a short time.