The primary objective of creating a crypto industry was to develop the capabilities of making transactions in a decentralized way and bypassing government regulation overshadowed it. Though, as time passed by, several intruders began to appear in the market and governments of various countries began to act to regulate this industry as well.
So, most jurisdictions ask organizations to be verified and obtain a crypto exchange license. It makes it possible to work entirely legally and has several significant advantages. Today we want to discuss why crypto organizations should get a work permit and the benefits of this solution.
Many crypto organizations consider themselves immune from the point of view of the law, but in fact, this is not entirely true. State bodies have developed sustainable rules for regulating the crypto industry. So, they learned to identify crypto organizations and block their work. In addition, the owners of such organizations are forced to pay heavy fines.
In addition, if you later decide to obtain a work permit, it will be challenging because you will have a bad reputation, which is the essential characteristic of any jurisdiction.
History knows many stories when the owners of crypto organizations were too arrogant and refused to obtain a work permit, and they all failed.
We all know, the crypto world invites a lot of risks, hence a huge group of people avoid getting into this business. As we regularly read and see about scammers and hackers in this market who swindle investors’ money and never get caught.
Though, being an honest service provider or crypto shareholder can make all the work easy for you like finding an investor or purchasing cryptocurrency. The easiest way is to get a crypto license in a respectable jurisdiction. The fact is that when obtaining a crypto permit, state authorities conduct a comprehensive check of the data of the owner and all team members, which makes it possible to understand whether they were previously involved in fraud or money laundering. Most business analysts can’t do that deep analysis, so they trust the government to do it.
Thus, getting a work permit to establish the highest level of trust between you and your investors would be best.
The more customers you can attract, the more likely your business will be able to work steadily and grow. Most crypto enthusiasts are accustomed to trusting trusted and licensed organizations, just like investors are afraid of scammers.
Large licensed organizations conduct large-scale advertising campaigns and publish ads on the most important sites in their country. For example, they can post advertisements in football stadiums, attracting the attention of many people worldwide. As they have nothing to be alarmed of, even from the regulatory state bodies.
Having a legal license will help you in negotiating for ad placement on popular platforms as well. The legal formalities completion help the company in getting out of any fear or legal trouble.
Even if you didn’t have any legal problems operating without a license in your country, at some point, you would decide to scale up and start working in other jurisdictions. The presence of one permit sometimes makes it possible to work legally in many other countries. For example, getting a work permit in Poland, the Czech Republic, Lithuania, or Estonia will allow you to work legally throughout the EU. Recall that all European countries have a stable economy, are loyal to the crypto business, and many crypto enthusiasts live here.
Two types of cryptocurrency licenses are available that you can obtain – A cryptocurrency exchange license and a Cryptocurrency wallet license. Let’s discuss both of them.
In this process, the license holder company provides consumers with a digital wallet, then creates and stores their wallet keys. However, the funds belong to the account holder and not the service provider.
If your company is involved in crypto mining-related activities without having a cryptocurrency license, then your organization may face some repercussions. Which includes,
These were some of the legal actions which may be taken if any organization gets caught dealing in illegal crypto activities, or dealing in crypto without having an authorized license.
To get a cryptocurrency license you may need a number of necessary documents and fulfill some criteria to be eligible for a license. Read and find out.
Documents Required –
These were the documents you will need during the processing of a crypto license, though you must be eligible for applying for a crypto license first, for that you’ll need to have,
These are some formalities you may need to consider while applying for a crypto license.
One of the most difficult stages in obtaining a license is choosing a license. First of all, you need to pay attention to the following characteristics:
If you cannot choose the most appropriate jurisdiction or find it challenging to understand all the legal aspects, you can turn to Gofaizen Sherle for help. Specialized lawyers here will answer all your questions, study your project and suggest which jurisdictions suit you best.