Why does a business need a cryptocurrency license and how to get it?
Many businessmen around the world understand the prospects of cryptocurrencies and seek to adapt their business activities to work with cryptocurrency. Obtaining a special license in the jurisdiction of registration of crypto-business promotes the possibility of obtaining a legal income. However, only a few States currently issue a crypto license, and some jurisdictions even prohibit the use of cryptocurrency.
What is a crypto license for?
Special permission documentation in this area is necessary for business if it is planned to accompany business activities with cryptocurrency operations. Otherwise, a legal person may be penalized for violating the law. Even if the firm does business in a jurisdiction where there are no crypto licensing requirements, doing business with cryptocurrency will involve some additional risks.
In particular, we are talking about the impossibility of exchanging cryptocurrency, as well as the impossibility of transactions with those jurisdictions where there are requirements for the presence of special authorization documentation. In addition, there will be difficulties in obtaining an account with a foreign bank.
Advantages of crypto license
In order to increase the transparency of entrepreneurial activity, the firms, which carry out their activities in the legal field, oblige their own clients to undergo the verification procedure of the person in accordance with the requirements of KYC and AML. This increases the confidence of regulators and contractors in such a legal entity.
Also, the issuance of special permit documentation allows the company to make a legal exchange of cryptocurrency for real money and vice versa, to make exchanges and transfers of various cryptocurrencies between digital wallets. In addition, the company will be able to sell products for cryptocurrency, emit cryptocurrency, as well as act as an intermediary in such transactions.
Where to obtain crypto license
It is profitable to issue crypto license in following jurisdictions:
Switzerland. To carry out legal transactions with cryptocurrency in Switzerland, you need to obtain permission from the regulator FINMA. There is no clear regulation of cryptocurrency transactions in the jurisdiction, but their implementation is not prohibited at the legal level. Legal entities can obtain a cryptocurrency license for banks and payment systems. But for crypto business to be legal, you need to comply with the legislation aimed at money laundering. You need to identify your clients and if in doubt report this to the federal authorities. Cryptocurrency in Switzerland is considered a wealth and is taxed accordingly.
Japan. Making a cryptocurrency license in this jurisdiction is quite expensive, but the opportunities for crypto business in Japan most. To obtain a license for cryptocurrency in Japan you need to comply with a number of requirements and be sure to keep fiat currency, trust money and deposits separately. Cryptocurrency must be split and clients must be identified. Compliance with these requirements is mandatory and verified every year during the audit.