There is no slowing down in the rate of disruption brought forth by cryptocurrencies. Due to its novelty and potential impact, few individuals have a firm grasp of its significance. Is investing in cryptocurrency a hoax or the next technological revolution after the internet?
Events have taken a turn that tips the scales in favor of the previous assertion. Bitcoin is gaining acceptance as both a medium of exchange and a store of wealth, particularly in Latin America and Africa.
It’s possible that cryptocurrencies may replace traditional currencies and fundamentally alter global commerce and finance. Many economics and industry experts predict this. Entrepreneurs and investors are concentrating more and more on the market since it is a large, dynamic, and developing business. In response, politicians have begun to regulate activities connected to blockchains in an effort to prevent and reduce fraud and misconduct in a lucrative business. To facilitate this, cryptocurrency licenses were established.
What makes having a cryptocurrency license so crucial?
In contrast to their illegal counterparts, legitimate cryptocurrency exchanges have a significant trust advantage. In return for an examination of your company, a license grants you permission to run it. This assures your customers that you take their business seriously and serves as evidence of your commitment to them.
In exchange for a license, you must demonstrate reliability and seriousness to the relevant regulatory body. All the time, this entails revealing the participants’ histories, including their education, work experience, and any previous run-ins with the authorities.
The regulatory bodies will be interested in learning about your infrastructure and business plan. They want to see a sample of your product and hear about the whole financial cycle of your project, including where the funding is coming from.
However, know-your-customer (KYC) due diligence is the most important part for any regulator, since it ensures adherence to anti-money-laundering (AML) requirements. It occurs before a commercial partnership officially begins, and entails establishing familiarity with the customer and their finance mechanism before approving their usage of your services.
What is the best cryptocurrency license for my business?
Identifying the most suitable jurisdiction for our customers cryptocurrency initiatives is a highlight of Fintech Harbor Consulting. Before helping you to obtain a crypto license in Estonia or another jurisdiction, it’s important to keep in mind the activity, market, financing, software suppliers, etc., since no two projects are the same.
The Estonian crypto licenses were redesigned in a timeframe of fewer than three years. Every week, authorities release new publications, data, and research.
In other words, keeping up with the constant stream of innovations is a constant daily challenge. It is crucial to hire a professional corporate services firm when launching a cryptocurrency business.
Instructions for Obtaining a Bitcoin or Other Crypto License
- Determine first whether a license is necessary. Without a proper license, is it possible to provide crypto consultancy services? What legislation your country’s financial authority enforces is what matters. In many countries, giving advice on how to invest in cryptocurrencies is considered financial advice and hence needs a license.
- Obtaining the appropriate licenses and settling on a suitable location for your project and business is the next step.
- Getting a license is the most difficult aspect of the process since you have to prove the legitimacy of your project and your team. This is why step three is registering your firm. Each authority has its own set of rules.
In all three cases, it is advisable to seek the assistance of a corporate services provider like Fintech Harbor Consulting, whose primary goal has always been to assist cryptocurrency entrepreneurs in getting their businesses off the ground. Also, here you will be helped to obtain other types of permits, for example, obtaining an EMI license.