Cryptocurrency license

Offshore Cryptocurrency Licence

Discover what a cryptocurrency license entails, leverage its exceptional benefits, and choose the best jurisdictions with our expert guidance to navigate your way to financial success in the digital world.

Before opting for a cryptocurrency license, the first step is to determine whether our activities fall within the regulatory framework in force to be eligible to apply for this license. In other words, if a company engages in activities that are not covered by the legal scope of a cryptocurrency license, it is evident that it will never receive a positive response from the regulator.

Therefore, let’s consider the conditions under which a company is required to have a cryptocurrency license, also known as a virtual currency provider license.

Does the company offer fiat-to-crypto exchange services? Does the company provide financial management services for users, such as wallet management? Is the company involved in a token or does it own its own token? Does the company offer cryptocurrency investment services?

If the answer to any of these questions is yes, it is logical to seek a jurisdiction where it is possible to obtain a cryptocurrency license to operate legally.

We refer to “jurisdiction” because, at present, many countries either lack the regulatory framework or are in the process of developing laws to govern the use and exchange of cryptocurrencies. Selecting a jurisdiction with a clear and supportive regulatory environment is crucial for the legal operation of cryptocurrency-related activities.

Cryptocurrency: Definition and News

A cryptocurrency, or crypto asset, is a digital medium of exchange that uses robust cryptography to secure transactions, control the creation of new units, and verify the transfer of assets through distributed ledger technologies. Thus, cryptocurrencies are a type of alternative currency or digital currency. There is controversy over whether cryptocurrencies should be decentralized or controlled by central banks or other entities.

The control of each currency is managed via a decentralized database, typically a blockchain, which serves as a public ledger of financial transactions.

Since the advent of Bitcoin in 2009, the first cryptocurrency to enter the market, many others have followed with distinct characteristics, such as Litecoin, Ethereum, Bitcoin Cash, Ripple, etc.

Cryptocurrency, a rapidly growing sector in recent years, has not gone unnoticed by tax authorities. Consequently, some countries like Estonia, Malta, Singapore, the United States, and Belize have decided to provide it with a legal framework. These countries have enacted legislation allowing businesses to participate in a constantly growing digital market.

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Virtual Asset Service Provider

Obtaining a VASP license for a cryptocurrency trading and exchange project is a complex and lengthy process that requires a certain level of knowledge and experience.

Virtual currency marks the beginning of a new era in technology. Indeed, electronic currencies, including cryptocurrencies, have innovative potential that will allow consumers to access a global payment system anytime, anywhere. Moreover, participation will be limited only by access to technology, not by factors such as credit history or a bank account.

Our company is one of the pioneers in the market, offering professional legal advice to entrepreneurs interested in establishing a business with a cryptocurrency license.

Advantages of a Cryptocurrency License

Compliance with Anti-Money Laundering (AML) Legislation

Regulatory Oversight to Offer Services

Streamlined Management and Administration

Enhanced Credibility in the Cryptocurrency Market to Compete with Major Companies such as Coinbase, Binance, etc.

Access to Liquidity Providers

Participation in a Financial System Experiencing Continuous Growth

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Company formation and management

MUNDO OFFSHORE'S PROCESS FOR ACQUIRING A CRYPTOCURRENCY LICENSE

The procedure for obtaining a cryptocurrency license can differ from one jurisdiction to another. The requirements may vary depending on the type of license sought or the activities envisaged. Therefore, it is essential to conduct a thorough analysis of the legal framework and client specifications to select the most suitable country.

Type of Activity and Key Actors background

During this phase, an analysis is conducted to determine the necessity of a license, as well as the type of license required (portfolio management, exchange, etc.). Special attention is also paid to the reputation of the founders (criminal records, place of residence, nationality, etc.).

Company formation

Once the initial analysis phase is completed and any potential issues (such as capital requirements, physical presence, workforce, etc.) have been satisfactorily resolved, we then proceed with the formal registration of the company within the jurisdiction where the license application will be submitted.

Preparation and Submission of Documents for the License Application

Generally, to obtain a cryptocurrency license, it is necessary to provide several documents such as a business plan, a description of the services offered, information about the project team, financial statements, compliance policies, risk management policies, etc. more details.

Human and Technological Resources

This part is considered crucial as regulators place great importance on the personnel employed. It is essential to have a resident AML officer. The technical aspect is left to the client's choice, who can either develop their own software from scratch or opt for outsourcing (in which case, we can assist in selecting the best providers of cryptocurrency software).

Post License compliance

Securing a cryptocurrency license marks just the beginning of regulatory obligations. Maintaining compliance with ongoing requirements is imperative to ensure the license remains valid and the business operates within legal boundaries. This involves regular submission of reports and periodic audits to uphold regulatory standards and demonstrate continued adherence to regulations.
Maintaining continuous compliance is essential to safeguard the integrity of operations and uphold trust with stakeholders, including customers, investors, and regulatory bodies. By adhering to ongoing regulatory requirements and proactively managing compliance, cryptocurrency businesses can ensure sustainable operations and mitigate the risk of regulatory sanctions.
In conclusion, the post-license phase demands a robust compliance framework and a vigilant approach to regulatory obligations. Through regular reporting, periodic audits, and proactive management, cryptocurrency businesses can maintain their licenses, operate with integrity, and build lasting trust within the industry.