cryptocurrency exchanges are platforms whose owners have the opportunity to make money in any case, even when there is a drop in cryptocurrency. A cryptocurrency exchange functions and becomes profitable in the most common cases as a result of setting transaction fees.
to set up your own cryptocurrency exchange you can earn with a smaller investment than other projects.
according to experts, cryptomania is set to become increasingly widespread in the near future, so the chances of cryptocurrency exchange success are very high.
Cryptocurrency exchange is a business that provides the opportunity to buy and sell Crypto for Fiat, Fiat for Crypto and Crypto for Crypto.
It should also be noted that prior to the adoption of the 5th Anti-Money Laundering Directive, crypto-exchanges were not regulated at European level and only from 2020 all crypto-exchanges must be licensed and comply with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations in their activities.
Choose the jurisdiction of the cryptocurrency exchange.
Determine within which jurisdiction you wish to operate, either limiting yourself to a single country or globalising your business from the outset. The jurisdiction chosen has a direct impact on the way of regulation, the need for licenses or other types of approvals.
In the following, we would like to point out in which jurisdictions the most well-known crypto-exchanges are registered, so:
1. Kraken is registered in Australia as a digital currency exchange regulated by the Australian Transaction Reporting and Analysis Centre (AUSTRAC).
2. Gemini, a popular bitcoin exchange registered by the Central Bank of Ireland as a Virtual Asset Service Provider (VASP).
3. Binance - registered in the Cayman Islands.
Partner with a reliable bank.
In order to operate with fiat money, you need to work with banks or payment service providers, so it is important to choose a reliable bank with convenient partnership terms and favourable exchange rates.
Establish proper customer support and security measures.
Link your cryptocurrency exchanger to others for additional liquidity.
The liquidity of a cryptocurrency exchanger lets you know the rate at which one asset is exchanged for another. If a trader submits a request to buy or sell an asset and the cryptocurrency exchange does not have enough of them to complete the transaction, it means that the trading venue is likely to have low liquidity issues.
Estonia is one of the first countries to offer cryptocurrency licences, which have since become some of the most sought-after licences in Europe.
– register the company with the Financial Supervisory Authority (EFSA);
– have a share capital of €100,000;
– have a bank account in the European Economic Area;
– have a business plan for at least two years;
– a company with a cryptographic licence in Estonia must keep a complete and up-to-date overview of all customers (KYC) and transactions (KYT) in accordance with AML/KYC regulations;
– an audit of the annual accounts of the virtual currency service provider is mandatory;
– according to current Estonian legislation, if you want to have a license for cryptocurrency exchange, you need to create and appoint an AML officer who has relevant knowledge about AML in Estonia and resides there. If you are looking for AML officers, we are ready to help you with that.
To obtain a licence for cryptocurrency exchange, you must meet the following conditions
– register a limited liability company in Lithuania;
– board members and ultimate beneficiaries must satisfy the requirements of impeccable business reputation, as well as confirm the absence of a criminal record;
– mandatory from one owner and one board member (can be the same owner).
To get a licence in the UK, you need to:
– set up a legal entity;
– register a legal entity with the Financial Conduct Authority (FCA);
– open bank accounts;
– prepare a business plan and other documents in accordance with AML/KYC legislation, etc;
– one shareholder and one director are required (foreign residents are allowed).
What documents do I need to apply for a crypto-licence?
In order to obtain a cryptolicence, a complete set of documents must be submitted, including a business plan, a certificate of criminal record, company account information and other information, which varies depending on the jurisdiction of operation.
How much does it cost to get a crypto-licence?
The cost of obtaining a licence depends on the jurisdiction and the activities the company plans to carry out.
How long does it take to get a crypto-licence?
Each country that allows cryptocurrency exchange has its own procedures. The timeline for obtaining a cryptocurrency licence also depends on the jurisdiction and takes longer than just registering a legal entity.
What are the criteria for choosing a jurisdiction?
And the answer is for whom you want to provide services, in which countries, for which citizens, in which jurisdictions.
How long does it take to open a cryptocurrency exchange account?
It is entirely possible to open an account in a few days, provided all the necessary documents are submitted, but it usually takes a little longer as some documents need to be notarised/apostilled or translated before they can be submitted.
One of the key challenges facing companies operating in the crypto space is obtaining and maintaining a bank account.
Despite the introduction of a legal framework for crypto-businesses, most traditional banks refuse to service accounts for this type of activity.
The key points when opening a bank account are as follows