OBTAINING CRYPTO LICENSES IN THE EU

OBTAINING CRYPTO LICENSES IN THE EU

The European Union willingly issues licenses for activities in the field of cryptocurrencies. The solution can be obtained by crypto-exchangers, exchanges, ICO projects, blockchain-related startups, and other similar activities.

Having received a license agreement, you can legally start doing crypto business in Europe. License price – from 3 500 EUR.

With experienced lawyers, it is possible to lead a company from registration to obtaining a license without significant difficulties. At the end of the process, there will be activity permission and VASP authorization.

VASP Cryptocurrency License in Europe

Cryptocurrency activity in Europe is regulated, therefore, before starting a crypto business in the EU, it is necessary to obtain a VASP license in a specific country in this region.

In 2023, not all jurisdictions yet carefully regulate and control crypto companies – in such countries, the blockchain industry remains a gray business. Today, in order to work legally, you need to contact the regulator of Estonia, Bulgaria, the Czech Republic, Germany, Portugal, Ireland, Poland, or Lithuania.

Having collected the necessary set of documents, you can expand your business and provide services not in one, but in several EU countries. The preparation of documentation is important, as delays in issuing a license can be significant.

Jurisdictions with crypto licenses

Let’s give an example of several jurisdictions and tell you how things are with crypto-licenses. It is in these countries that it is easiest to obtain licenses.

Lithuania

One of the best jurisdictions in which it is easy to launch a crypto or digital money exchange. With proper preparation and compliance of the business with a number of requirements, a license will be issued in 3-5 weeks.

Estonia

It is the first country to start regulating cryptocurrencies. Companies began to legalize their activities in 2017. The first projects that received permission were exchangers and exchanges, with the support of experienced lawyers.

Czech

The third country in the ranking, with loyal conditions for young crypto companies. It is easy to launch startups in this country, and the duration of obtaining a license is only 3-4 weeks. The Czech regulator regulates crypto companies, tokens, NFTs, and other virtual assets.

EU requirements for crypto companies

Requirements in different countries vary depending on the jurisdiction. Key points that crypto projects need to know:

Company founders. They must have a high reputation without dubious moments in the biography, such as a criminal record. To prove the reputation, the regulator asks for a police clearance certificate. Also, in some jurisdictions, it is important that the director be a citizen of that country.

AML officer. The eurozone is fighting money laundering, therefore, it requires the involvement of an MLRO officer in the crypto project, who will transfer data on suspicious transactions to the regulator.

The company’s fight against money laundering. Cryptocurrency companies must provide working ways to combat money laundering and fulfill a number of requirements:

• Verify clients.
• Take precautions and adhere to KYC (know your customer) principles.
• Verify customer transactions.
• Obey the principles of sanctions and restrictive measures.
• Assess AML/CFT risks. It is also important to mitigate risk if a suspicious customer or transaction is identified.
• Submission of reports and provision of information to the regulator.
• The internal control algorithm, and AML policy support.
• Alert regulators about suspicious financial transactions.

To maintain a license, a cryptocurrency company must store information about customers (not delete their accounts) for 5 years or more. It is also forbidden to delete data about their transactions and any financial transactions.