A great number of business people from different countries of the world appreciate the prospects that cryptocurrencies have. Consequently, they try to adapt their business practices to the new payment instrument. Acquiring a crypto license can bring you a new legal source of income. However, only a few countries currently issue crypto licenses. In many countries, crypto operations are not regulated and in some countries, they are prohibited. Â
When do you need a crypto license?
A crypto license is required if your business activities involve payments in cryptocurrencies. If you do not hold a crypto license but perform crypto operations anyway, you may be fined in many countries where such operations are against the law. Even if you do business in a jurisdiction that does not issue crypto licenses and neither does it regulate their use in any way, you might face some unnecessary risks anyway. In particular, you may be unable to exchange cryptocurrencies into fiat money and you will be unable to do business with jurisdictions that regulate crypto operations. In addition to that, you are going to have problems opening a foreign bank account if you are engaged in unlicensed crypto operations.  Â
All companies using cryptocurrencies make it obligatory for their clients to go through KYC and AML procedures. This is required by the law. True, this requirement brings additional costs but it increases the level of the company’s trustworthiness. Holding a universal crypto license, the company can legally exchange cryptocurrencies into fiat money and vice versa, transfer crypto money between digital wallets, sell its products for cryptocurrencies, emit crypto, and act as an intermediary in crypto operations.
What type of business company has to acquire a crypto license?
A legal entity that exchanges crypto into fiat and back needs a crypto license. A company that pays salaries to its employees in cryptocurrencies needs a crypto license. A company that manages crypto finances of third parties needs a crypto license. A company that intends to emit cryptocurrencies needs a license by all means.
The process of obtaining a crypto license
The procedures of acquiring a crypto license are not the same in different countries. Each country puts forward its own requirements as far as the application documents are concerned. There are a few items that are common for most countries, however. The licensing agency will want to have the following information whatever country you choose to apply for a crypto license:
-    The amount and the liquidity of the company’s Charter capital;
- Â Â Â The corporate bank account that is going to be used for crypto operations;
- Â Â Â The form of the company ownership and its corporate structure;
- Â Â Â Personal information about the company UBOs.
The standard process of acquiring a crypto license
In the standard case, the process of obtaining a crypto license consists of the following steps:
- Choose the jurisdiction to apply for a crypto license. The choice is currently rather limited but several countries do issue crypto licenses.
- Open a bank account of the type that will allow performing operations with cryptocurrencies.
- Hire qualified personnel (an AML specialist is often required).
- Obtain the required hardware and install the software.
- Prepare the application documents.
- Apply for a crypto license.
Depending on the country, the process of crypto currency acquisition can take between 1 and 6 months.
Standard requirements that a crypto company has to meet
The requirements will also be different depending on the country but in the standard case, the following requirements need to be met:
- Â Â Â Keeping accounting and financial records;
- Â Â Â Adhering to the internal procedures that mitigate risks associated with money laundering;
- Â Â Â Monitoring suspicious operations with cryptocurrencies;Â
- Â Â Â Organizing regular training sessions for the company employees;
- Â Â Â Conducting due diligence procedures.
Crypto licenses often come in several classes. Every license authorizes the holder to perform certain kinds of crypto operations. This is how things work in Malta, for example. The holder of a low-class license can make and accept crypto payments and that is it. The holder of the highest-class license, however, is free to perform all sorts of crypto operations.
Jurisdictions where you can acquire a crypto license
| Country | Key requirements | Application documents | Timeframe of crypto license acquisition | License fee, euro |
| USA | AML\KYC2 requirements need to be satisfied by all means. | 1) Company statutory documents;
2) Proof of legal origin of crypto money; 3) Personal data of the local representative |
2 weeks | 7,000 |
| Japan | The company has to have a registered legal address in the country and a local director. Besides, the Charter capital of the company has to be at least 90,000 euros | 1) Personal data of the company directors and ultimate beneficial owners;
2) A business plan; 3) Company AML policies. |
6 months | From 30,000 |
| Great Britain | All AML requirements need to be satisfied and a local company director has to be hired. | 1) A business plan for several years ahead;
2) Statutory documents of the company; 3) Cryptocurrency wallet numbers. |
From 3 months | From 15,000 |
| Switzerland | Regular AML/CFT reports have to be filed. Security of the digital money has to be guaranteed. The Charter capital of the company has to be at least 100,000 euros. | 1) A business plan for several years ahead;
2) Proof of legal origin of crypto money; 3) Statutory documents of the company. |
90 days | From 15,000 |
| Singapore | The company has to have two residents of Singapore as directors. The license can be granted only to a company that has at least 2 years of relevant experience. The Charter capital of the company has to be at least 166,000 euros. | 1) A business plan;
2) Statutory documents of the company; 3) Corporate bank account number. |
6 months | 30,000 |
| Malta | The company has to have economic substance in Malta and have a Charter capital of at least 750,000 euros. | 1) A business plan;
2) Statutory documents of the company; 3) Corporate bank account number. |
From 3 months | From 12,000 |
| Estonia | The company has to have a registered legal address in Estonia and a local director. Having an AML specialist on the staff is also obligatory. The Charter capital of the company has to be at least 12,000 euros. | 1) A business plan;
2) Statutory documents of the company; 3) Corporate bank account number; 4) Police clearances. |
From 2 months | From 12,000 |
| Madeira | Madeira does not issue crypto licenses but acquiring the MSB status will allow the company to engage in cryptocurrency exchange. | None | 30 days | 6,000 |
| Hong Kong | The company has to have a registered legal address in Hong Kong and an AML specialist on the staff. | 1) A business plan for several years ahead;
2) An office rent agreement; 3) Statutory documents of the company. |
3 – 5 months | 15,000 to 35,000 |
| New Zealand | The company has to have a registered legal address in New Zealand. It has to apply practices that exclude customer deception. | 1) A business plan;
2) Statutory documents of the company; 3) An extract from the Register; Â 4) Police clearances. |
30 days | 15,000 |
| Comoros | The company has to have a registered legal address in the Comoros and an AML specialist on the staff | 1) A business plan;
2) Statutory documents of the company; 3) Corporate bank account number. |
3 – 4 weeks | 50,000 |
Please note that the situation in the crypto industry has been changing dramatically and new opportunities are likely to arise in the near future.
Reasons to Apply for a Crypto License
A great number of business people from different countries of the world appreciate the prospects that cryptocurrencies have. Consequently, they try to adapt their business practices to the new payment instrument. Acquiring a crypto license can bring you a new legal source of income. However, only a few countries currently issue crypto licenses. In many countries, crypto operations are not regulated and in some countries, they are prohibited. Â
When do you need a crypto license?
A crypto license is required if your business activities involve payments in cryptocurrencies. If you do not hold a crypto license but perform crypto operations anyway, you may be fined in many countries where such operations are against the law. Even if you do business in a jurisdiction that does not issue crypto licenses and neither does it regulate their use in any way, you might face some unnecessary risks anyway. In particular, you may be unable to exchange cryptocurrencies into fiat money and you will be unable to do business with jurisdictions that regulate crypto operations. In addition to that, you are going to have problems opening a foreign bank account if you are engaged in unlicensed crypto operations.  Â
All companies using cryptocurrencies make it obligatory for their clients to go through KYC and AML procedures. This is required by the law. True, this requirement brings additional costs but it increases the level of the company’s trustworthiness. Holding a universal crypto license, the company can legally exchange cryptocurrencies into fiat money and vice versa, transfer crypto money between digital wallets, sell its products for cryptocurrencies, emit crypto, and act as an intermediary in crypto operations.
What type of business company has to acquire a crypto license?
A legal entity that exchanges crypto into fiat and back needs a crypto license. A company that pays salaries to its employees in cryptocurrencies needs a crypto license. A company that manages crypto finances of third parties needs a crypto license. A company that intends to emit cryptocurrencies needs a license by all means.
The process of obtaining a crypto license
The procedures of acquiring a crypto license are not the same in different countries. Each country puts forward its own requirements as far as the application documents are concerned. There are a few items that are common for most countries, however. The licensing agency will want to have the following information whatever country you choose to apply for a crypto license:
-    The amount and the liquidity of the company’s Charter capital;
- Â Â Â The corporate bank account that is going to be used for crypto operations;
- Â Â Â The form of the company ownership and its corporate structure;
- Â Â Â Personal information about the company UBOs.
The standard process of acquiring a crypto license
In the standard case, the process of obtaining a crypto license consists of the following steps:
- Choose the jurisdiction to apply for a crypto license. The choice is currently rather limited but several countries do issue crypto licenses.
- Open a bank account of the type that will allow performing operations with cryptocurrencies.
- Hire qualified personnel (an AML specialist is often required).
- Obtain the required hardware and install the software.
- Prepare the application documents.
- Apply for a crypto license.
Depending on the country, the process of crypto currency acquisition can take between 1 and 6 months.
Standard requirements that a crypto company has to meet
The requirements will also be different depending on the country but in the standard case, the following requirements need to be met:
- Â Â Â Keeping accounting and financial records;
- Â Â Â Adhering to the internal procedures that mitigate risks associated with money laundering;
- Â Â Â Monitoring suspicious operations with cryptocurrencies;Â
- Â Â Â Organizing regular training sessions for the company employees;
- Â Â Â Conducting due diligence procedures.
Crypto licenses often come in several classes. Every license authorizes the holder to perform certain kinds of crypto operations. This is how things work in Malta, for example. The holder of a low-class license can make and accept crypto payments and that is it. The holder of the highest-class license, however, is free to perform all sorts of crypto operations.
Jurisdictions where you can acquire a crypto license
| Country | Key requirements | Application documents | Timeframe of crypto license acquisition | License fee, euro |
| USA | AML\KYC2 requirements need to be satisfied by all means. | 1) Company statutory documents;
2) Proof of legal origin of crypto money; 3) Personal data of the local representative |
2 weeks | 7,000 |
| Japan | The company has to have a registered legal address in the country and a local director. Besides, the Charter capital of the company has to be at least 90,000 euros | 1) Personal data of the company directors and ultimate beneficial owners;
2) A business plan; 3) Company AML policies. |
6 months | From 30,000 |
| Great Britain | All AML requirements need to be satisfied and a local company director has to be hired. | 1) A business plan for several years ahead;
2) Statutory documents of the company; 3) Cryptocurrency wallet numbers. |
From 3 months | From 15,000 |
| Switzerland | Regular AML/CFT reports have to be filed. Security of the digital money has to be guaranteed. The Charter capital of the company has to be at least 100,000 euros. | 1) A business plan for several years ahead;
2) Proof of legal origin of crypto money; 3) Statutory documents of the company. |
90 days | From 15,000 |
| Singapore | The company has to have two residents of Singapore as directors. The license can be granted only to a company that has at least 2 years of relevant experience. The Charter capital of the company has to be at least 166,000 euros. | 1) A business plan;
2) Statutory documents of the company; 3) Corporate bank account number. |
6 months | 30,000 |
| Malta | The company has to have economic substance in Malta and have a Charter capital of at least 750,000 euros. | 1) A business plan;
2) Statutory documents of the company; 3) Corporate bank account number. |
From 3 months | From 12,000 |
| Estonia | The company has to have a registered legal address in Estonia and a local director. Having an AML specialist on the staff is also obligatory. The Charter capital of the company has to be at least 12,000 euros. | 1) A business plan;
2) Statutory documents of the company; 3) Corporate bank account number; 4) Police clearances. |
From 2 months | From 12,000 |
| Madeira | Madeira does not issue crypto licenses but acquiring the MSB status will allow the company to engage in cryptocurrency exchange. | None | 30 days | 6,000 |
| Hong Kong | The company has to have a registered legal address in Hong Kong and an AML specialist on the staff. | 1) A business plan for several years ahead;
2) An office rent agreement; 3) Statutory documents of the company. |
3 – 5 months | 15,000 to 35,000 |
| New Zealand | The company has to have a registered legal address in New Zealand. It has to apply practices that exclude customer deception. | 1) A business plan;
2) Statutory documents of the company; 3) An extract from the Register; Â 4) Police clearances. |
30 days | 15,000 |
| Comoros | The company has to have a registered legal address in the Comoros and an AML specialist on the staff | 1) A business plan;
2) Statutory documents of the company; 3) Corporate bank account number. |
3 – 4 weeks | 50,000 |
Please note that the situation in the crypto industry has been changing dramatically and new opportunities are likely to arise in the near future.
