As a result of the increasing spread of cryptocurrencies, more and more people are willing to create cryptocurrency exchanges, i.e. platforms for their free exchange, withdrawal and other operations. However, there are some subtleties related to their operation and functioning that one should be aware of.
– Since the beginning of Internet trading, trading commissions have been a major source of profit for online marketplaces around the world.
– Cryptocurrency allows people to access a wide range of financial services. If you offer these people to deal in cryptocurrencies on your exchange, it can significantly increase traffic and thus lead to additional revenues.
– If your exchange has a regular stream of customers, ICO projects are more likely to want to publish their assets on your site for a modest fee.
Ensure proper legal support
It is no secret that in many places cryptocurrency exchanges operate without significant oversight, while in other places operators must have a license to operate a money transfer business and must comply with certain rights and regulations, among others. Therefore, before opening this kind of doing business, it is necessary to familiarize yourself with the relevant legislation regulating this kind of activity.
Link your exchange to others for additional liquidity.
The liquidity of a trading floor lets you know the rate of exchange of one asset for another. If a trader submits a request to buy or sell an asset and the trading floor does not have enough of them to complete the transaction, it means that the trading floor likely has low liquidity issues.
Cooperate with the payment processor.
This step mainly consists of choosing a proper payment processor and legal support for your cooperation. It is important to thoroughly familiarize yourself with all the terms and conditions of the payment processor in order to avoid hidden fees and other discriminatory conditions of the contract.
Provide the right level of customer support.
Consumer-facing companies must respond in a timely manner to any kind of user complaints. And moreover, since the crypto-exchange does not stop its work 24/7, customer support should function uninterruptedly. In addition, in order for crypto-exchange clients to be familiar with the order of treatment, it is necessary to create accordingly the terms of use of the site and other related documents. Such actions are aimed to protect against claims from users and for the purpose of general understanding of the work of the site and its components.
Quite often there is confusion between these two concepts and the main reason for this is the use of the term “cryptoexchange” which defines both an exchanger and a crypto-exchange. The basis for their distinction is in their functionality, which is much broader if we are talking about a cryptoexchange. In addition, crypto exchanges only allow for the exchange between fiat currencies and cryptocurrencies, while crypto exchanges make this exchange profitable.
So what choice should you make? Should you choose a crypto-exchange or a crypto-exchange?
The answer to this question is that to set up a crypto-exchange you need to understand the broader functioning of such a structure, so if you are looking for the easiest way, it is better to choose a crypto-exchange.
European common law countries operate in the field of cryptoassets according to a single scenario, but with territorial differences defining areas with more and less favorable licensing conditions.
The first thing to note is that there is the Anti-Money Laundering Directive (2018/843), which established the basic requirements for virtual asset service providers (VASPs), outlined the terms of service and the obligations of cryptocurrency projects to comply with AML /KYC measures.
The following outlines the main requirements that must be met in order for your business to comply with applicable laws:
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