Crypto License in the United Kingdom
Contents
Cost of Cryptocurrency License in the UK
A lot depends on your business’s scale. In general, the application fee to register as a crypto UK business starts at £10,880 at the time of writing. This service falls into Category 6 of the FCA’s pricing categories and also implies annual fees following the company’s authorization in the market. The overall processing time is up to six months.
Crypto Legislation in the UK
Before submitting your application for licensing your business in the country, you are to ensure the following:
- Maintain transaction-related records properly and effectively.
- Your land-based office should be located in the UK. The same goes for your company’s registration as a whole.
Advantages to Consider
Acquiring a crypto license in the UK will contribute to your business’s operational efficiency:
- streamlined access to the EU market;
- a transparent and secure crypto company registration process;
- a welcoming crypto community, elevating your networking;
- competitive corporate tax rates (19% as of now, to be more exact).
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Crypto Licensing Process in the UK
Fintech Harbor Consulting LTD can help you increase your chances of successful legal protection of your newly registered UK crypto exchange company (or another type of entrepreneurship of your choice). Our seasoned experts will assist in handling cryptocurrency transactions, completing comprehensive applications, meeting all FCA, AML, CTF, and other regulations, etc. Feel free to contact your credible partner in the industry at your earliest convenience.
Requirements to Register Your Crypto Business in the UK
Here is what you need to take care of before participating in professional cryptocurrency trading UK:
- To get started, register your brand in the Companies House.
- Join the FCA and register a crypto-asset company under its roof. At Fintech Harbor Consulting LTD, we can help you navigate through nuances and meet its CTF, AML, and other requirements with the utmost precision.
- Work on your documentation — key personnel information (with qualifications and background checks included), business plan, internet controls to prove your operational capabilities, and measures to showcase your CTF and AML compliance in action.
- Work on your company’s security measures, ensuring top-notch data protection.
- Pay the applicable fees and submit your application for licensing in the United Kingdom.
Crypto Regulations in the UK Overview
UK crypto laws cover business operations that involve three major types of crypto assets:
- Bitcoin, Ether, and other exchange-traded tokens;
- utility tokens;
- security tokens.
In the best-case scenario, you must consider the most essential laws and regulations in the market, getting more protection and security for your company’s future growth and expansion:
- the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017;
- the Consumer Protection from Unfair Trading Regulations 2008;
- the Consumer Rights Act 2015:
- the Data Protection Act 2018;
- Know Your Customer requirements.
How to Open a Crypto Company in the UK
Let’s walk you through the procedure of establishing a crypto business and gaining a high-end crypto license UK:
- The primary stage is to register your firm in the Companies House, establishing its legal entity.
- You take care of your company’s documentation, ensuring compliance with FCA’s requirements.
- Check the official FCA portal and submit your application on the website.
- Respond to FCA’s requests as a part of the FCA application procedure. Be ready to provide it shortly.
- Wait for the FCA to review your data.
- You will receive a reply from the FCA, either satisfying or declining your application. If the latter you will be able to improve your documentation and reapply for the UK crypto license.
- Once approved, you are to cover the application fee.
Crypto Taxes in the UK
The kind of crypto transactions and activities your business offers will define what kind of taxation you are subject to:
- Capital Gains Tax — it is 10% through 20% of your gains and is calculated based on your progress in selling crypto assets for fiat money, trading NFTs, or gifting such funds (unless the target recipient is your spouse).
- Income Tax — the range is greater in this case, from 20% to 45%, and depends on your liquidity mining rewards, staking rewards, bounties, employee remuneration, and so on.
With modern services, you will be able to calculate the amount of taxes for your business to cover under the chosen crypto exchange license UK. At Fintech Harbor Consulting LTD, we will guide you through the nuances of the matter and streamline your control of tax reports.
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FAQ
What are the requirements for obtaining a crypto license in the UK?
Overall, the list of common requirements boils down to meeting KYC, CTF, AML, and other security, performance, and data protection standards set up by the Financial Conduct Authority (FCA) in the United Kingdom. Please consult with our team for a personalized insight into the topic.
How does a crypto exchange license in the UK benefit cryptocurrency trading businesses?
This way, your endeavor will gain a credible image and solid tools to build credible relationships with target audiences across markets and potential partners. You will streamline your access to financial services with reduced operational challenges and boosted legal protection at your disposal.
What UK crypto laws should be considered when setting up a cryptocurrency exchange?
Comply with the FCA’s regulatory guidelines, adhering to the norms of the Data Protection Act 2018 and other laws in the UK — with updates on these acts included, of course.
